Crop Production

Crop Production

Brief Excerpt from Industry Overview Chapter:

Companies in this industry grow crops such as grain, oilseeds, tobacco, dry beans, potatoes, vegetables and melons, fruits and nuts, and floriculture. Major companies include Amaggi Exportação e Importação (Brazil), Chiquita Brands International, Dole Food Company, Fresh Del Monte Produce, Sunkist Growers, and Total Produce (Ireland).

Global crop production revenue exceeds $1 trillion. The US and China are among the top crop producers.

The US crop production industry includes about 1 million farms with combined annual revenue of about $205 billion. Moderate growth is forecast for the next two years. Key growth drivers include increases in global population.

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 capital-intensive: average annual revenue per employee is about $390,000.

Crop exports - mainly oilseeds and grains - account for about 35 percent of US production. China, Mexico, and Japan are the top grain export markets. China is the largest importer of US oilseed and grain, accounting for 25 percent of all US oilseed and grain exports. Imports account for less than 20 percent of the US market. The US imports more vegetables, melons,...