Industry Analysis & Industry Trends
The Animal Food Production industry fattened up over the past five years, despite fluctuations in the price of animal feed. The industry was also bolstered by a steady increase in demand for pet food brought on by an increase in pet ownership. In the coming years, the industry is expected to grow alongside demand for animal feed and pet food. Rising disposable income will encourage more Canadians to purchase pets and pet food products. In particular, premium brands will benefit as consumers are better situated financially to pamper their pets... purchase to read more
Industry Report - Industry Investment Chapter
Industry operators require a high level of capital investment because production requires machines to process inputs, manufacture the products and package them. As more companies rely on machinery to automate processes, they endure more wear and tear and must be replaced. For every dollar spent on wages, companies spend $0.36 on capital.
All of the industry's major players have undertaken a significant amount of capital expenditures in recent years. For example, in 2013, Cargill invested over $2.4 billion on efforts to modernize its facilities to increase production efficiencies and reduce the price of its animal feed products. However, capital intensity varies considerably with regard to the size of the producer... purchase to read more