Industry Analysis & Industry Trends
The Poultry Raising industry is being squeezed. While industry revenue has grown, profits for the industry have fallen to an average of 3.0% of revenue for 2011-12, due to higher feed costs, electricity bills and regulatory changes. These challenges have pushed industry players out of the industry, as their operations have become unsustainable. Moreover, egg farmers are required to phase-out battery cages by January 2012, as directed by the Hen Welfare Directive ban. The associated higher investment costs are pushing industry players to the wall.
However, there have been rays of light for the industry. Egg consumption increased over the past five years, as it shed its negative image as a food product high in cholesterol... purchase to read moree
Industry Report - Starting a New Business Chapter
The capital cost of establishing a poultry farm may pose a barrier to entry due to the cost of the infrastructure required for entering the industry. Entry costs are indicated by the average value of poultry farm assets. The industry is also heavily regulated in terms of animal welfare codes and public hygiene standards that govern the way in which birds are housed, fed and transported. This can cause substantial increases in farming costs, which may deter smaller players from entering the market.
A key barrier to entry is the need to secure a contract to supply birds to a local poultry meat processor. The level of existing competition is high among players, especially as many operations are vertically integrated to include processing and feed facilities... purchase to read more