Going sour: Though rising export demand has supported revenue, margins continue to narrow

Over the five years through 2018-19, the Sheep Farming industry's revenue is expected to grow at a compound annual rate of 1.8%. Revenue has been volatile, as fluctuations in both sheep meat and wool prices have significantly affected the industry. The industry has benefited from an overall increase in the domestic price of sheep meet and growth in wool exports. Additionally, the large depreciation of the pound in 2016-17 following the EU referendum has protected the industry against sheep meat imports from New Zealand and Australia to some extent, whereas it has benefited exports of wool to developing nations, especially China. Domestic demand for luxury wool, such as cashmere, and goats' milk has also risen during the period...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising demand for wool from developing nations has supported industry exports
  • Rising demand for luxury wool from developing nations has contributed to export growth
  • Changes to funding levels may force less efficient farmers out of the industry
  • Industry Report - Industry Products Chapter

    The product mix of the industry can vary depending on the breed of sheep and goat reared. Although most sheep and goat breeds can be used for meat, milk and wool production, a number of breeds are more specialised. For example, certain species are bred to produce luxury cashmere wool or low-lactose goats' milk, which can be consumed by some lactose-intolerant consumers.Animals for slaughterAnimals for slaughter are expected to account for 80.5% of industry revenue in the current year. Sheep meat can be separated into two distinct segments: lamb and mutton. Lamb is meat from sheep below one year old, while mutton refers to meat from sheep that are older than two years. Meat from a sheep aged between one and two years is known as a hogget. Lam...purchase to read more.

    Additional Insights for the Sheep Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sheep Farming Industry are

  • Proximity to key suppliers
  • Proximity to key markets
  • Ability to alter goods produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Domestic price of sheep meat and Animal feed prices in the Sheep Farming industry impact industry performance..

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    What's in this report

    What is the Sheep Farming Industry?

    Businesses in this industry raise and breed sheep and goats. Farmers in the industry are also involved in wool production. The industry excludes the processing of meat or milk.

    Industry Products
  • Wool
  • Lambs for slaughter
  • Raw sheep's and goats' milk
  • Sheep and goats for slaughter
  • Sheep sold for breeding purposes
  • Industry Activities
  • Lamb raising
  • Sheep farming
  • Goat farming
  • Wool production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of sheep meat
  • Animal feed prices
  • Domestic price of wool
  • Level of annual rainfall
  • Real effective exchange rate

  • Current Performance
  • Price movements
  • Demand conditions
  • Profit pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Challenging changes
  • Health consciousness
  • Industry innovation
  • Table: Sheep Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sheep Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Meat Processing
  • Yoghurt & Other Dairy Product Processing
  • Textile Weaving & Finishing
  • Clothing Manufacturing

  • Key Selling Industries
  • Agricultural Machinery & Equipment Wholesaling
  • Animal Feed Production
  • Live Animal Wholesaling

  • Products & Services
  • Lambs for slaughter
  • Wool
  • Sheep and goats for slaughter
  • Raw sheep's and goats' milk
  • Sheep sold for breeding purposes
  • Chart: Sheep Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Meat processors
  • Wool wholesalers
  • Dairy processors
  • Sheep farmers
  • Chart: Major Market Segmentation for the Sheep Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesUtilitiesDepreciationRentOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Sheep Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sheep Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Sheep Farming 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 Sheep Farming Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The removal of wool from around the tail and between the legs of sheep.
  • Ewe
  • A female adult sheep.
  • Mutton
  • Meat taken from a sheep over two years of age.
  • Processing
  • The process of taking a live animal, slaughtering it and then breaking it down into saleable goods.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sheep Farming 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:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sheep Farming:
    • 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 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 Sheep Farming 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 Sheep Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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