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June 30th, 2012 
FAKE NEWS for the Zionist agenda The Animal Food Production industry depends on favorable conditions outside its control, such as weather patterns, disease incidence and consumer preferences. Despite these volatile conditions, growth is expected as global demand for meat increases in line with overall population growth, especially in developing countries. Advancements in crop technology and alternative energy sources combined with product innovation are projected to alleviate some of the inherent risks the industry faces associated with commodity-based goods. Also, a forecast increase in disposable incomes and, subsequently, pet ownership will likely drive demand for pet food. For these reasons, industry research firm IBISWorld has added a report on the Animal Food Production industry to its growing industry report collection.
Los Angeles, CA (PRWEB) June 30, 2012
From cattle to cats, the Animal Food Production industry provides sustenance for livestock and pets in the United States and around the world. “Given the grain-based nature of most types of feed, movements in agricultural inputs like corn, soybeans and wheat heavily influence profit for animal food producers,” says IBISWorld industry analyst Josh McBee. “Likewise, feed demand stems from the agricultural viability of livestock commodities like beef, pork and poultry.”
Feed prices, downstream demand for animal products and commodity movements are the key drivers of the Animal Food Production industry. Demand for pet foods augments total sales. “With regard to commodities, corn’s relationship to oil has been increasing feed prices,” adds McBee, “but recent spikes in the crop’s value have been to the detriment of feed producers.” Meanwhile, growth in global meat consumption and, consequently, herd stocks has sustained modest revenue gains as meat producers demand more livestock feed. Also, Americans have stood by their pets during the Great Recession, with canine and feline ownership growing even as personal disposable incomes have fallen. Given these conditions, IBISWorld expects industry revenue to grow at an average rate of 3.8% per year during the five years to 2012. Positive demand conditions from all downstream markets (farm supplies wholesalers, animal producers and pet stores) will help revenue gain 1.9% to total $50.4 billion in 2012.
The industry’s future prospects are modest, with slow but sustained growth anticipated through the next five years. Advancements in crop technology and alternative energy sources combined with product innovation are projected to alleviate some of the inherent risks associated with commodity-based goods. Also, a forecast increase in disposable incomes and, subsequently, pet ownership will likely drive demand for pet food, a segment typified by high profit margins and brand-loyal consumers. Export growth is also anticipated during the next five years, as the economic rise of countries in the Asian Pacific and Latin America drive demand for meat and animal feed. To this end, industry revenue is forecast to grow through 2017. Consolidation is expected to continue in the future through sustained merger and acquisition activity, primarily driven by major players such as Cargill, ADM and Mars. Given that economies of scale are imperative to maintaining industry profitability, it is very likely there will be fewer animal food manufacturers servicing wider geographic markets through the next five years. For more information, visit IBISWorld’s Animal Food Production in the US industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry process raw ingredients into food for animal livestock and pets. The products are packaged and sold to cattle ranches, dairy farms, other animal-production farms, grocery wholesalers and retailers.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products Markets
Supply Chain
Products Services
Major Markets
Globalization Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith
IBISWorld
310-866-5042
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