Grain Storage in Australia - Industry Market Research Report

Sowing the seeds: Strong growth in grain production volumes has fed industry revenue

Operators in the Grain Storage industry have benefited from strong growth in grain production volumes over the past five years. Industry revenue is expected to rise at an annualised 5.7% over the five years through 2022-23, to $3.1 billion. The industry is characterised by extreme revenue volatility, which creates difficult conditions for operators. Shifting wheat prices, movements in the Australian dollar and fluctuating grain production due to changing rainfall have influenced industry demand and earnings. For example, a record national grain harvest during 2020-21 significantly increased demand for grain storage. However, dry and hot weather conditions hampered the industry early in the five-year period. This trend was clear in 2019-20, when poor crop yields limited demand for storage services and restricted industry revenue. An anticipated decline in crop production is expected to contribute to industry revenue declining by 11.7% in the current year.

Industry firms primarily store cereal grains. Following crop harvest, grain handlers receive and sort grain according to its use and protein content. Grain is then dispatched as required, either for domestic consumption or export.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.