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Sheep Farming in Australia Industry Market Research Report Now Updated by IBISWorld

March 27, 2014

Though wool is still the larger product segment, over the past five years many sheep farmers have shifted production in favour of meat processing. For this reason, industry research firm IBISWorld has updated its report on the Sheep Farming industry in Australia.

Melbourne, Australia (PRWEB) March 28, 2014

Operators in the Sheep Farming industry in Australia have faced mixed conditions over the past five years. According to IBISWorld industry analyst Brooke Tonkin, “waning industry revenue early in the period was followed by strong revenue growth in the subsequent years, as the long-standing drought finally broke.” Industry revenue is expected to grow at an annualised 5.1% over the five years through 2013-14, on the back of the industry's recovery. The rapid revenue growth that occurred as the rains returned has levelled out over the past two years. In 2013-14, industry revenue is expected to grow by 3.4%, to reach $3.3 billion.

Australia is home to over 74 million sheep, with wool production historically forming the largest portion of industry revenue. However, many farmers shifted production away from wool in favour of meat processing over the past five years. “Historically high input prices, particularly for wheat feed and fuel, have made it too expensive for many farmers to keep large flocks,” says Tonkin. Consequently, turnoff rates have been at their highest over the past five years, particularly in 2008-09 and 2009-10. The latter year saw the nation's sheep flock fall to 68.1 million, its lowest level in over 100 years. The return of solid rainfall in 2009-10 enabled many farmers to focus on rebuilding their flocks.

Despite rising turnoff rates, wool has remained the industry's largest source of export revenue. The Sheep Farming industry has benefited from rising demand from Asian markets, particularly China. Dramatic increases in the price of wool in 2010-11 and 2011-12 helped the industry perform particularly well, driving revenue above $3.0 billion for the first time in six years. Overall, wool prices have recovered from the depths of 2008-09 and helped boost sheep farmers' profit margins. The industry's performance over the next five years will be largely determined by external factors, primarily weather conditions. Continuing high prices for lamb and wool will bode well for industry revenue. Ongoing growth in China's textile industry will fuel demand for wool exports. However, the industry's positive demand factors will amount to little should El Nino weather patterns return over the next five years. The industry exhibits a low level of concentration, with no major players.

For more information, visit IBISWorld’s Sheep Farming report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This industry consists of farms that are primarily engaged in sheep farming. Sheep are farmed for their meat and wool.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

International Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Basis of Competition

Barriers to Entry

Industry Globalisation

Major Companies

Operating Conditions

Capital Intensity

Technology & Systems

Revenue Volatility

Regulation & Policy

Industry Assistance

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/03/prweb11709653.htm


Source: prweb



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