Industry Analysis & Industry Trends
The Live Animal Wholesaling industry has been highly volatile in the past decade due to a wide range of factors. This industry is mainly influenced by demand from upstream farms requiring cattle, sheep, pigs and poultry for continued farming, such as dairy cattle for milk production and sheep for wool production. These farms may purchase breeding animals from wholesalers and then breed further animals from these. Live animal wholesaling firms also purchase animals from farms for resale to other farms and businesses, such as slaughterhouses and meat processing firms. Live animal exports and imports also influence industry demand and revenue, as do animal disease outbreaks, as have occurred in recent years.
Another major industry influence is feed and other input prices... purchase to read more
Industry Report - Industry Investment Chapter
The Live Animal Wholesaling industry has a low capital intensity level due to the moderate labour requirements and low capital requirements within the industry. Using total industry wages as a proxy for labour (estimated at 6.2% in 2011-12) and depreciation costs as a proxy for capital (1.5%), this industry is estimated to have a capital-to-labour ratio in 2011-12 of about 1:4.1. This is estimated to have changed little in previous years, with wages costs and capital expenses changing only moderately from year to year.
Most wholesaling industries have a low to medium capital intensity levels due to the nature of these industries. Wholesalers that take actual delivery of animals incur capital costs for vehicles and buildings... purchase to read more