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

The Farm Supplies Wholesaling industry has thrived amid volatility in agricultural input prices over the past five years. Industry operators sell a variety of fertilizers, pesticides and other agrochemicals in the agricultural sector; farmers are the primary market for industry operators. While demand from industries involved in crop production has risen steadily over the past five years, fluctuations in the price of fertilizer and commercial feed stifled revenue growth over the period. The industry continues to mirror broader trends of contraction and consolidation occurring in Canada's agricultural sector. As the overall number of farms continues to decline, more independent operators are merging into partnerships or being bought out by large corporations...read more.

Industry Statistics & Market Size
Revenue
$20bn
Annual Growth 12-17
1.2%
Forecast Growth 17-22
Profit
Employment
9,893
Businesses
425
Market Share of Companies

Industry Threats & Opportunities

  • Demand from key crop production industries will strengthen as the overall economy continues to improve
  • Volatility in the price of key inputs has put pressure on industry revenue growth
  • Increased production is expected to lower the cost of many products that use natural gas
  • Industry Report - Industry Investment Chapter

    The Farm Supplies Wholesaling industry in Canada exhibits a high level of capital intensity; for every dollar spent on labour, $0.82 is allocated to capital expenditure. Capital intensity has increased over the past five years as the industry has increasingly become automated, rising from $0.67 in 2012. Operators have adopted new technologies to help streamline the wholesaling process. For instance, technologies, such as radio frequency identification (RFID), are used to track orders and inventory levels, limiting the need for labour.At the same time, workers' functions are shifting away from labour-intensive stocking and packaging activities toward customer relations. Ope...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. A wholesaler 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
  • Consolidation continues
  • 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
  • Nitrogen fertilizers
  • Herbicides
  • Phosphate fertilizers
  • Potash fertilizers
  • Antimicrobials
  • Ammonium sulfate and other agrochemicals
  • Other pesticides
  • Chart: Farm Supplies Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Grain and oilseed producers
  • Other crop producers
  • Nursery and garden retailers
  • Fruit and vegetable farmers
  • 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
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Additional expenses
  • Chart: Cost Structure Benchmarking – Sector vs Farm Supplies Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Farm Supplies Wholesaling Industry

  • Industry Globalization
    Agrium Inc.,
  • Table: Agrium Inc. - 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Price of fertilizer (2008-2022)

  • 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 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:
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    • Identify threats and opportunities
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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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