COFCO - Competitors

COFCO Competition

Now Viewing COFCO's competition in: Agriculture Crop Production

Recent Developments

US Agricultural Exports Rising - US farmers are benefiting from rising global demand for agricultural products and the low value of the US dollar compared to other currencies. US wheat exports rose 121 percent in the first half of 2008 compared to the same period in 2007. Exports of soybeans rose 97 percent; corn, 67 percent; and cotton, 10 percent.

Request to Reduce US Ethanol Requirements Denied - The EPA has denied a request by Texas' governor to reduce federal ethanol requirements for 2008. Farmers may have been negatively impacted if reduced ethanol consumption resulted in lower corn prices. The Texas governor and several industry groups claim that rising US ethanol output is inflating corn prices, hurting livestock and food producers, and boosting grocery bills.

US Farm Income Expected to Increase - US farm income will rise 4 percent in 2008 compared to 2007, according to the USDA. Total US farm income is expected to be $92.3 billion in 2008, well above the $61.1 billion average for the 10-year period ending in 2007. Experts cite rising demand for corn caused by increasing ethanol production, rising global demand for agricultural products, and the weak value of the US dollar as key causes of the expected rise in income.

Competitive Landscape

Demand is driven by federal agricultural policy programs, food consumption trends, and the grain and oilseed export market. The profitability of individual companies depends on maximizing crop yield and minimizing disease risk. Large companies have advantages in highly automated technologies and access to the latest in seed and crop technologies. Small operations can compete effectively by harvesting heirloom, non-genetically modified (GM), or specialty products. The industry is highly labor-intensive: average annual revenue per employee (operator and hired laborers) is $100,000.

Full Industry Overview For Agriculture Crop Production

Agriculture Crop Production Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US cotton, grains, tobacco, fruit, vegetables, and other crops is forecast to grow at an annual compounded rate of 5.9 percent between 2007 and 2012.

Agriculture Crops Growth Spikes

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.