Farm Raw Product Wholesalers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 3,400 farm raw product wholesalers in the US purchase grain, crops and livestock from area farms, ranches and breeders, then aggregate the products or animals and sell in larger volumes to slaughter houses, grain mills, poultry farms, yarn and textile manufacturers (cotton, wool), food manufacturers, exporters, landscaping firms and builders (sod), biofuel producers and other manufacturers and wholesalers.

Trade Restrictions Limit Markets

Trade restrictions on exports limit market access and make exports more expensive for foreign customers.

Volatility in Commodity Prices

Raw farm product prices can change due to supply in the domestic or global market, shifts in consumer demand for products made with the commodity, and imports that gain or lose US market share.

Industry size & Structure

The average farm raw material product wholesaler employs about 20 workers and generates over $60 million in annual revenue.

    • There are 3,400 farm raw material product wholesalers in the US, operating 6,100 facilities, employing about 68,600 people, and generating annual revenue of $207 billion.
    • The industry is somewhat concentrated with the 20 largest firms controlling 56% of industry revenue.
    • Large grain wholesaling companies include Cargill, Scoular, Tronson Grain, and Pacificor.
    • Large livestock wholesaling companies include Smith Farms, East Carolina Stockyard, and South Texas Cattle Marketing.
                                    Industry Forecast
                                    Farm Raw Product Wholesalers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 15, 2022 - Commodity Prices Nearing Record Levels
                                    • Global agricultural commodity prices are near record levels, according to an April 2022 report from the USDA’s Foreign Agricultural Service. Over the past 18 months, wheat prices have risen nearly 110%, corn and vegetable oil prices are up 140%, and soybean prices are up 90%. Stocks in major corn exporting countries, including the United States, are expected to be the lowest since 2012/13, while soybean prices have been rising since 2020. US soy oil will provide a less expensive and plentiful substitute for sunflower oil from Ukraine and Russia.
                                    • As Russia’s invasion of Ukraine boosts concern over the global fuel supply and prices to record highs, the biofuel and farming sectors are urging Federal regulators to finalize requirements under the Renewable Fuel Standard and increase biofuels blending volume for 2022. Farm raw product wholesalers are likely to be affected, as much of the biofuel produced in the US is made from corn. Experts say that the RFS has consistently pitted the oil and corn lobbies against each other. Both are major political constituency groups that are top of mind for politicians as the US readies for midterm elections later this year.
                                    • Employment in the farm raw product wholesaling industry increased 7.1% in February 2022 compared to a year earlier and was up 7.9% compared to pre-pandemic February 2020.
                                    • Supply chain problems have caused some companies to find alternatives to shipping containers. Sugar and rice traders are booking dry bulk vessels, a transportation method abandoned years ago, in lieu of shipping containers, according to Reuters news service. Dry Bulk cargo ships carry unpackaged raw material in the ship’s holds instead of in containers. Sugar, coffee, rice, cotton, and cocoa are some agricultural products that could be transported via dry bulk vessels. Break-bulk cargo vessels can also carry products that are sacked. An increasing portion of rice is arriving at US ports in bulk rather than in containers, according to the US Census bureau. The Port of Stockton in California, which only handles bulk cargo, is also seeing an increase in break-bulk ships. “Commodities that would normally be in containers are now coming to us,” said Kirk DeJesus, the port director in Stockton. Sugar is more typically transported in bulk than is rice, but it has also seen an increase in bulk carriers.
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