Plowing through: Industry revenue will rise despite volatility from commodity markets

The Farm Supplies Wholesaling industry in Canada has expanded despite volatility in agricultural input prices over the past five years. While demand from industries involved in crop production has generally risen over the past five years, fluctuations in the price of fertilizer and commercial feed stifled revenue growth. Nevertheless, strong growth through the middle of the period is expected to drive industry revenue forward. The industry is expected to perform strongly over the next five years as demand from crop production industry remains strong and the price of its key products stabilize. Furthermore, improvement in the overall economy will encourage individuals to spend more on food items...read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 14-19
1.5%
Forecast Growth 19-24
Profit
Employment
11,456
Businesses
716
Market Share of Companies

Industry Threats & Opportunities

  • Demand from crop production industry remains strong and the price of its key products stabilize
  • Volatility in the price of key inputs has put pressure on industry revenue growth
  • Demand for farm supplies is expected to grow steadily as the economy continues to expand
  • Industry Report - Industry Analysis Chapter

    The Farm Supplies Wholesaling industry in Canada distributes a range of manufactured and other goods to crop and livestock farmers. While the performance of the industry largely depends on demand from the agriculture sector as a whole, the single most important determinant of revenue growth is the price of farm supply inputs. Purchasing costs generally consist of the price of inputs for fertilizer and pesticides. Wholesalers are able to pass the majority of these cost increases on to downstream buyers, boosting revenue when price increases occur. Both fertilizer and pesticide prices experienced fluctuations over the five years to 2019 and, as a result, industry revenue has been volatile. Overall, IBISWorld estimates revenue to grow at an annualized rate of 1.5% to total $20.8 bi...purchase to read more.

    Additional Insights for the Farm Supplies Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Farm Supplies Wholesaling Industry are

  • Effective cost controls
  • Ability to control stock on hand
  • Having a cost-effective distribution system
  • IBISWorld analysts also discuss how external factors such as Price of fertilizer and Demand from crop production in the Farm Supplies Wholesaling industry impact industry performance..

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    What's in this report

    What is the Farm Supplies Wholesaling Industry?

    This industry is primarily engaged in wholesaling agricultural chemicals, such as fertilizers, herbicides, pesticides and general farm supplies to farmers. Wholesalers may have an exclusive distributorship to sell a particular brand within a specified territory, but generally they sell products in competition with other wholesalers.

    Industry Products
  • Nitrogen fertilizers
  • Potash fertilizers
  • Phosphate fertilizers
  • Ammonium sulfate and other agrochemicals
  • Herbicides
  • Antimicrobials
  • Other pesticides
  • Industry Activities
  • Chemical fertilizer distribution
  • Fumigant distribution
  • Fungicide distribution
  • Herbicide distribution
  • Insecticide distribution
  • Farm supplies distribution
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of fertilizer
  • Demand from crop production
  • Demand from pesticide, fertilizer and other agricultural chemical manufacturing
  • Overnight rate

  • Current Performance
  • Rising demand
  • Price volatility
  • Concentration and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Steady demand growth
  • Fracking is the future
  • More consolidation
  • Table: Farm Supplies Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Farm Supplies Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soybean Farming in Canada
  • Corn Farming in Canada
  • Vegetable Farming in Canada
  • Fruit & Nut Farming in Canada
  • Nursery & Garden Stores in Canada

  • Key Selling Industries
  • Fertilizer Manufacturing in Canada
  • Mining In Canada
  • Pesticide Manufacturing in Canada
  • Train, Subway & Transit Car Manufacturing in Canada
  • Truck & Bus Manufacturing in Canada

  • Products & Services
  • Potash fertilizers
  • Herbicides
  • Nitrogen fertilizers
  • Phosphate fertilizers
  • Antimicrobials
  • Ammonium sulfate and other agrochemicals
  • Other pesticides
  • Chart: Farm Supplies Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Crop producers
  • Oilseed and grain farming
  • Nursery and garden retailers
  • Fruit and vegetable farmers
  • Other crop producers
  • Chart: Major Market Segmentation for the Farm Supplies Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation
  • Chart: Cost Structure Benchmarking – Sector vs Farm Supplies Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Farm Supplies Wholesaling Industry

  • Industry Globalization
    Nutrien Ltd.,
  • Table: Nutrien Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Farm Supplies Wholesaling 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 Farm Supplies Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Price of fertilizer (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cooperative
  • An association formed by farmers, distributors and processors with the purpose of benefiting its member-operators.
  • Fertilizer
  • A type of compound or material that supplies plants with the necessary nutrients needed to grow.
  • Genetically Modified (Gm)
  • A technique where specific changes are introduced into a plant or animal's DNA by genetic engineering techniques. The most common modified foods include soybean, corn and canola.
  • Pesticide
  • A substance or chemical agent that is used to control, kill or repel organisms that are considered pests.
  • Plant Bulb
  • An underground stem or root surrounded by fleshy leaves that contain plant food and nutrients. Bulbs are used in planting and transplanting nursery crops and flowers.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Farm Supplies Wholesaling 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
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    This report on Farm Supplies Wholesaling:
    • 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 Farm Supplies Wholesaling 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 Farm Supplies Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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