A mixed bunch: Sector profitability has increased despite an overall decline in revenue

The Agribusiness sector plays a key role in New Zealand’s economy. Some agribusiness industries are among the largest in New Zealand, such as the Cheese, Butter and Milk Powder Manufacturing industry and the Meat Processing industry. However, the range of operations included in the sector means that collective revenue performance has been subdued over the past five years. Strong revenue growth for some sector activities has been offset by declining revenue in others. As a whole, revenue for the Agribusiness sector is expected to fall at an annualised 0.7% over the five years through 2019-20, to $93.7 billion. This includes an anticipated revenue decline of 0.2% in the current year...read more.

Industry Statistics & Market Size
Revenue
$94bn
Annual Growth 15-20
-0.7%
Forecast Growth 20-25
Profit
Employment
217,849
Businesses
67,064
Market Share of Companies

Industry Threats & Opportunities

  • Exports are vital to the Agribusiness sector, accounting for over one-third of revenue
  • Dairy Cattle Farming is one of the largest industries included in the Agribusiness sector
  • Agribusinesses are anticipated to benefit from a weak New Zealand dollar over the next five years
  • Industry Report - Industry Investment Chapter

    The Agribusiness sector is highly capital-intensive. For every dollar spent on wages in 2019-20, an estimated $0.38 is spent on capital. Capital intensity varies among sector operators. For example, dairy cattle farmers have high depreciation expenses due to their investment in automated milking machines and feeding systems. Conversely, capital intensity is much lower in the Fruit and Vegetable Wholesaling industry, as wholesalers require less investment in automated machinery. The sector's capital intensity has fallen slightly over the past five years...purchase to read more.

    Additional Insights for the Agribusiness Industry

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

  • Economies of scale
  • Establishment of export markets
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and Level of annual rainfall in the Agribusiness industry impact industry performance..

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    What's in this report

    What is the Agribusiness in New Zealand Industry?

    The Agribusiness sector includes businesses that are directly engaged in, or benefit from, agricultural activities.

    Industry Products
  • Dairy products
  • Meat and livestock products
  • Fruit and vegetables
  • Fish and seafood
  • Other products and services
  • Industry Activities
  • Agricultural primary production
  • Agricultural support services
  • Food processing
  • Wine production
  • Agricultural machinery
  • Agricultural product wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • Level of annual rainfall
  • Beef and veal production
  • Domestic price of meat
  • Domestic price of milk
  • Milk production

  • Current Performance
  • Dairy
  • Meat and livestock
  • International trade
  • Sector structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Changing product mix
  • International trade
  • Sector structure
  • Table: Agribusiness Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Specialised Grocery Retailing in New Zealand
  • Supermarkets, Grocery Stores and Convenience Stores in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Road Freight Transport in New Zealand
  • Water Freight Transport in New Zealand

  • Products & Services
  • Meat and livestock products
  • Dairy products
  • Fruit and vegetables
  • Other products and services
  • Fish and seafood
  • Chart: Agribusiness Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Manufacturers and processors
  • Retailers and food-service establishments
  • Primary producers
  • Wholesalers
  • Other markets
  • Chart: Major Market Segmentation for the Agribusiness Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Agribusiness

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Agribusiness Industry

  • Industry Globalization
    Fonterra Co-operative Group Limited,
  • Table: Fonterra Co-operative Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Agribusiness 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 Agribusiness Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Farmgate Prices
  • The price the farmer receives for their produce.
  • Fodder
  • Food, such as dried hay and straw, eaten by cattle and other livestock.
  • Scouring
  • The process of carbonising, carding and combing wool to separate grease from wool fibres.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Agribusiness in New Zealand market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Agribusiness in New Zealand:
    • 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 Agribusiness in New Zealand 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 Agribusiness in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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