Industry Analysis & Industry Trends
The Sugar Manufacturing industry has faced volatile commodity prices and fluctuating weather patterns over the past five years. Despite this, industry revenue is forecast to grow at an annualised 1.8% over the five years through 2015-16, to reach $3.0 billion. World sugar prices have remained high for the majority of the past five years, although they have trended downwards over the period. Additionally, domestic sugar production has increased over the past five years. These two factors have boosted industry revenue over the period. However, a forecast reduction in raw sugar production is expected to decrease revenue by 2.1% in 2015-16.
The industry derives a large share of its revenue from exports... purchase to read more
Industry Report - Starting a New Business Chapter
Firms wishing to engage in sugar manufacturing face significant barriers to entry. A major factor inhibiting entry is access to raw supplies. The presence of internationally owned companies and medium- and long-term supply contracts in both raw and refined sugar markets can act as a major impediment to entry. Although the deregulation of the Queensland sugar industry has allowed canegrowers to sell their harvest to the mill of their choice, most canegrowers have contracts with mills to sell to them for a set period. This arrangement may limit the ability of new millers to secure sugar cane for processing. The land available for agriculture is also declining, so the difficulty of sourcing raw supplies may increase in the future... purchase to read more