Drained: Drought in the Murray-Darling Basin has reduced industry output and revenue

The amount of water operators in the Rice Growing industry can access influences production, as rice is a water-intensive crop. Therefore, the level of annual rainfall and water availability are key determinants of industry performance. Rice growers’ reliance on rainfall is reflected in the industry’s projected performance over the two years through 2019-20. Industry output and revenue are expected to be negligible over this period, as severe drought in the Murray-Darling Basin (the Basin), which hosts most industry establishments, has forced farmers out of the industry. This decline follows a sharp revenue increase in 2016-17, when above-average rainfall allowed farmers to produce a bountiful crop. In weight terms, the national rice crop declined by 92.9%...read more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Severe drought in rice growing regions has caused industry output to plummet
  • Declining water availability and drought have constrained rice production over the past five years
  • Water irrigation constraints in the Murray-Darling Basin are projected to limit rice growth over the next five years
  • Industry Report - Industry Investment Chapter

    The Rice Growing industry is highly capital-intensive. For every dollar spent on capital, an estimated $1.78 is spent on wages. Individual rice growers, like most agricultural farms, have a relatively low number of employees and need to purchase expensive equipment and machinery for irrigation, planting and harvesting. Capital intensity has increased over the past five years, as more advanced equipment has been implemented to monitor planted areas, test soils, and irrigate and harvest crops. Capital expenditure in the industry is focused on increasing productivity and reducing operating and input costs, primarily water expenses. While manual labour is often required over the growing season, these employees are often temporary and are hired on a casual basis. As ...purchase to read more.

    Additional Insights for the Rice Growing Industry

    IBISWorld has determined the most important Key Success Factors for the Rice Growing are:

  • Appropriate climatic conditions
  • Appropriate physical growing conditions
  • Availability of irrigation water
  • IBISWorld analysts also discuss how external factors such as Rice production and Availability of water in the Rice Growing industry impact industry performance..

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    What's in this report

    What is the Rice Growing Industry?

    Operators in the industry grow rice, which is sold to millers for processing. The product is generally then onsold to retailers, wholesalers, food processors and food-service establishments to reach the final consumer.

    Industry Products
  • Short-grain rice
  • Medium-grain rice
  • Long-grain rice
  • Industry Activities
  • Rice growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Rice production
  • Availability of water
  • Level of annual rainfall
  • Demand from cereal grain wholesaling

  • Current Performance
  • Revenue, water availability and production
  • Consumer demand and profit
  • Ricegrowers Limited
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue, production and profitability
  • Genetic modification
  • Table: Rice Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Rice Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Flour and Grain Mill Product Manufacturing
  • Grain Storage

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Heavy Industry and Other Non-Building Construction
  • Shearing, Cropping and Agricultural Support Services
  • Water Supply

  • Products & Services
  • Long-grain rice
  • Medium-grain rice
  • Short-grain rice
  • Chart: Rice Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers and retailers
  • Animal feed wholesalers and retailers
  • Other markets
  • Chart: Major Market Segmentation for the Rice Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Rice Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Rice Growing 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 Rice Growing 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 Rice Growing Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)
  • Repair and Maintenance (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Precision Farming
  • A farming technique that uses advanced crop management and satellite technology to assist in decision making for irrigation and planting strategies.
  • Sustainable Diversion Limits (Sdls)
  • The maximum amount of water that can be extracted from the Murray-Darling Basin. SDLs are set to come into force in 2019.
  • Yield
  • A measurement of the amount of crop harvested. Yields are often affected by factors such as rainfall and temperature.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Rice Growing 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 Rice Growing:
    • 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 of 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 Rice Growing 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 Rice Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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