First Pacific - Competitors

First Pacific Competition

Now Viewing First Pacific's competition in: Grain Milling (primary)

Recent Developments

Raw Material Prices Rising - US grain mills are paying more for raw materials due to the rising cost of producing those materials and rising global demand for grains. The producer price of wheat rose 36.6 percent in July 2008 compared to July 2007; the price of corn rose 80.4 percent. Grain mills will be negatively affected if rising raw material prices can't be passed to customers.

Ethanol Plant will Convert Rice Hulls to Fuel - Colusa Biomass is building a facility in Arkansas that will use rice hulls and rice straws to produce ethanol and commercial silica. Grain milling companies that produce rice-based products are likely to benefit if they can sell their waste products instead of paying to dispose of them. Many industry experts say that using the inedible parts of rice plants instead of corn to produce ethanol may help slow the rise of food prices.

Farm Bill Program Boosts Spending on Grain Products - A new program included in the Farm Bill, which was passed into law in early 2008, may benefit grain mills by boosting spending on grain products. The Nutrition Title program provides $4 million in fiscal year 2009 for the purchase of whole grains and whole grain products for use in school lunch and breakfast programs. The Nutrition Title program is intended to encourage greater awareness and interest in the number and variety of whole grain products available to school children.

Competitive Landscape

Demand is driven by consumer patterns in bread, whole grains, and rice consumption. The profitability of individual companies depends on managing grain prices and inventory effectively, and minimizing the risk of rodents, insects, and molds. Large companies have advantages in advanced milling technology and a diversified product line. Small operations can compete effectively by specializing in organic, non-genetically modified, or heirloom grains. The industry is capital-intensive: average annual revenue per employee is about $600,000.

Full Industry Overview For Grain Milling

Grain Milling Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of the US grain farming, an indicator of grain milling, is forecast to increase at an annual compounded rate of 5.9 percent between 2007 and 2012.

Grain Farming Output Growth Steadies

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.