Shearing profit: Volatile prices and falling demand have caused margins to narrow

Operators in the Sheep Farming industry have endured volatile conditions over the five years through 2017-18. The industry's performance is strongly linked to sheep meat prices, which have fluctuated over the period. While price increases support farm incomes, they can cause consumers to seek cheaper alternatives to sheep meat such as chicken. Difficult market conditions weighed on industry performance despite rising prices in 2013-14. Price volatility and reduced bargaining power means farmers have struggled to capture sustainable shares of retail prices, as supermarkets' dominance of the supply chain more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising sheep meat prices and strong export demand are expected to support growth
  • Exports are expected to continue to rise in the current year as the value of the pound remains low
  • A potential free trade deal with New Zealand would be expected to hamper industry performance
  • Industry Report - Industry Analysis Chapter

    Operators in the Sheep Farming industry have endured volatile conditions over the five years through 2017-18. The industry’s performance is strongly linked to domestic sheep meat prices, with higher prices boosting revenue and profit for operators. Farmers within the industry are perceived to be price takers, operating on very thin margins and often relying on subsidies from the EU’s Common Agricultural Policy (CAP) to remain profitable. Additionally, the industry’s performance has been affected by weather conditions. Farmers depend on high levels of rainfall, though excess rain can cause flooding and significantly damage sheep farming operations. Over the five years through 2017-18, industry revenue is expected to increase at a compound annual rate of 1.3% to reach £1.2 billion...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 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
  • Volatile conditions
  • Downstream demand
  • Trade flows
  • Warm welcome
  • Chart: Revenue Growth

  • Industry Outlook
  • Difficult outcome
  • 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 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 competitionExternal 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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