Cool beans: Growing demand and renewable energy targets will support continued growth

The Soybean Farming industry in Canada has been immensely volatile throughout its history, but the five years to 2018 have been largely positive. The 2010 Renewable Fuels Regulations revived soybean farming through mandated biofuel minimums, providing a new source of industry growth. Meanwhile, the export market has expanded, and imports have increasingly met the needs of domestic soybean crushers. Furthermore, domestic ethanol production has indirectly helped the industry by diverting large quantities of corn away from the livestock feed market. The future for Canadian soybean farmers looks bright, as demand is anticipated to continue growing and renewable energy targets are expected to keep rising both domestically and internationally over the next five years...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
3.7%
Forecast Growth 18-23
Profit
Employment
8,705
Businesses
8,350
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Demand from emerging economies will keep exports high, supporting industry revenue growth
  • Weather conditions drive industry revenue via their effect on crop prices
  • The federal Renewable Fuels Regulations program aims to increase the use of biofuels in Canada
  • Industry Report - Industry Investment Chapter

    Capital intensity in the Soybean Farming industry is high, as most farming activities such as ploughing, sowing and harvesting are mechanized. Tractors, storage mills and irrigation systems are common features on soybean farms and are treated as depreciable assets. Although technological advancements make these items increasingly costly, they also allow farmers to use less labour and maximize crop quality and yields. IBISWorld estimates that for every dollar spent on labour, $0.69 is allocated toward capital. Labour is not a fixed cost, so it fluctuates in response to changing industry and economic conditions. In addition, a large portion of paid labour is seasonal. Demand for labour is highest during planting, cultivation and harvest periods. Sim...purchase to read more.

    Additional Insights for the Soybean Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Soybean Farming Industry are

  • Economies of scale
  • Appropriate physical growing conditions
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as World price of soybeans and GDP of mainland China in the Soybean Farming industry impact industry performance..

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    What's in this report

    What is the Soybean Farming Industry?

    This industry grows soybeans. Soybeans are most often used in livestock feed and vegetable oils, although a growing proportion of the crop produced by this industry is being used in biofuel production.

    Industry Products
  • Industrial use
  • Seed requirements
  • Other soybean products
  • Industry Activities
  • Soybean farming
  • Soybean seed production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of soybeans
  • GDP of mainland China
  • Canadian-dollar effective exchange rate index
  • World price of crude oil

  • Current Performance
  • Price volatility and globalization
  • Industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising exports and high profit
  • Future threats to industry growth
  • Table: Soybean Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Soybean Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Production in Canada
  • Dairy Farms in Canada
  • Animal Feed Production in Canada
  • Organic Chemical Manufacturing in Canada
  • Corn, Wheat & Soybean Wholesaling in Canada

  • Key Selling Industries
  • Biotechnology in Canada
  • Farm, Lawn & Garden Equipment Wholesaling in Canada
  • Fertilizer Manufacturing in Canada

  • Products & Services
  • Industrial use
  • Other soybean products
  • Seed requirements
  • Chart: Soybean Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic markets
  • Soybean exports to China
  • Soybean exports to other markets
  • Soybean exports to Japan
  • Soybean exports to Italy
  • Soybean exports to the United States
  • Chart: Major Market Segmentation for the Soybean Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Soybean Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soybean Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Soybean Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Soybean Farming Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of soybeans (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Biodiesel
  • A fuel that is similar to diesel fuel and is usually derived from vegetable sources (such as soybean oil).
  • Biofuel
  • Also called agrifuel or biodiesel. A fuel consisting of or derived from dead biological material, usually plants.
  • Genetically Modified (Gm)
  • A technique whereby specific changes are introduced into a plant's or animal's DNA by genetic engineering techniques. The most common modified foods include soybean, corn and canola.
  • Herbicide
  • A substance used to destroy unwanted plants and weeds, while leaving a desired crop relatively unharmed.
  • Soybean Meal
  • The solid protein left over after the oil is removed from soybeans.
  • Yield
  • The number of soybeans produced per acre of land. For soybeans, this is measured in bushels per acre.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Soybean Farming market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Soybean Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Soybean Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Soybean Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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