Bad seed: Uncertainty in global wheat yields will pose a threat to the industry

The Wheat Farming industry in Canada has endured strong headwinds as a result of unfavourable global market conditions over the five years to 2019. The industry is highly globalized and therefore heavily reliant on trade, which has improved since the dismantling of the Canadian Wheat Board in 2012 that was restricting the marketing freedom of farms. Although Canadian farms were able to withstand some price declines early in the period through increases in export volumes, the world price of wheat plummeted in 2016 as global supply thrived, which hit the industry hard. Since 2017, higher prices and demand for Canadian wheat have been supporting revenue growth, which is expected to persist over the five years to 2024....read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 14-19
-1.4%
Forecast Growth 19-24
Profit
Employment
50,019
Businesses
8,980
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Higher prices and demand for Canadian wheat have been supporting revenue growth
  • The world price of wheat has been recovering since 2017, benefiting the industry
  • Yields are expected to grow as technological advancements improve operational efficiency
  • Industry Report - Industry Locations Chapter

    Due to the agricultural needs of wheat products in the Canadian Wheat farming industry, the geographic spread of wheat farming by province is closely tied to the suitability of each region's terrain. The primary farming regions domestically are located in prairie land, with Alberta, Saskatchewan and Manitoba being the three provinces with the most land designated as prairie.As a result, these are by far the three regions with the largest share of domestic production. Saskatchewan leads the nation in wheat production and typically accounts for over 45.0% of total wheat production. Alberta accounts for the next largest share, at 31.5%, while Manitoba accounts for 14.7%. The...purchase to read more.

    Additional Insights for the Wheat Farming Industry

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

  • Ability to alter goods and services produced in favour of market conditions
  • Establishment of export markets
  • Appropriate physical growing conditions
  • IBISWorld analysts also discuss how external factors such as World price of wheat and Canadian effective exchange rate index in the Wheat Farming industry impact industry performance..

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    What's in this report

    What is the Wheat Farming Industry?

    This Canadian industry comprises establishments primarily engaged in growing one or more varieties of wheat.

    Industry Products
  • Spring wheat, hard red
  • Spring wheat, other
  • Winter wheat
  • Durum wheat
  • Industry Activities
  • Growing spring wheat
  • Growing winter wheat
  • Growing durum wheat
  • 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 wheat
  • Canadian effective exchange rate index
  • Demand from flour milling
  • Price of fertilizer

  • Current Performance
  • Global market trends
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Global trends and threat
  • Downstream demand growth
  • Table: Wheat Farming Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Production in Canada
  • Hog & Pig Farming in Canada
  • Chicken Egg Production in Canada
  • Animal Feed Production in Canada
  • Flour Milling in Canada
  • Breweries in Canada

  • Key Selling Industries
  • Farm, Lawn & Garden Equipment Wholesaling in Canada
  • Fertilizer Manufacturing in Canada
  • Long-Distance Freight Trucking in Canada
  • Support Activities for Crop Production In Canada
  • Wheat Farming in Canada

  • Products & Services
  • Spring wheat, hard red
  • Durum wheat
  • Spring wheat, other
  • Winter wheat
  • Chart: Wheat Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Animal feed
  • Food processing
  • Other
  • Chart: Major Market Segmentation for the Wheat Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Wheat Farming

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wheat 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 Wheat 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 Wheat Farming Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • World Price of Wheat (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Biofuel
  • Any fuel produced from biomass or organic materials including biodiesel and ethanol.
  • Genetically Modified
  • Also referred to as GM, organisms that have had their DNA altered through genetic engineering to exhibit desired traits.
  • Yield
  • The amount of a crop produced per acre of land, measured in bushels per acre for grains.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wheat Farming market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Wheat 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 Wheat 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 Wheat Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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