The Australian Hay industry is made up of approximately 10 exporters with 3 big players in dominating the market.
Australian hay exporters are well established in the international markets, and most exporters already know the major importers, having developed long relationships with them.
New businesses would have to verify who they would be selling to as it would be a conflict of interest if the Australian hay exporters sold to their customer's competitors.
This creates high barriers of entry as deals are almost exclusive to one importer which in turn creates difficulties for new players to enter the market. This exclusivity also allows the distributors to charge higher prices to end buyers.
Australian hay exporters are well established in the international markets, and most exporters already know the major importers, having developed long relationships with them.
New businesses would have to verify who they would be selling to as it would be a conflict of interest if the Australian hay exporters sold to their customer's competitors.
This creates high barriers of entry as deals are almost exclusive to one importer which in turn creates difficulties for new players to enter the market. This exclusivity also allows the distributors to charge higher prices to end buyers.
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