Industry Analysis & Industry Trends
The Sugar Manufacturing industry's performance over the past five years has been decidedly bittersweet. It remains at the mercy of errant climatic conditions and global supply, demand and pricing fluctuations, which have caused revenue and profitability to vary dramatically. Historically high sugar prices helped boost revenue over 2009-10, but could do little to offset losses flowing from steep declines in production over the subsequent two years. Adverse weather conditions, including severe bouts of drought and flooding, led to huge declines in both supply and revenue, especially during the millennium drought and the devastation from tropical cyclones Larry (2006) and Yasi (2011)... purchase to read more
Industry Report - Industry Analysis Chapter
The Sugar Manufacturing industry has been soured by erratic weather conditions that have caused consistent declines in production and revenue. Periods of prolonged drought, flooding and the devastating effects of tropical cyclone Larry in 2006 and Yasi 2011 offset any benefit from recent price spikes in sugar prices, and have caused industry revenue to decline at an annualised 11.3% over the five years through 2012-13 to $1.53 billion. In addition, revenue is expected to fall by 10.6% over 2012-13 as domestic farmgate prices fall in response to lower anticipated world sugar prices.
Global industry dynamics
Sugar prices are generally correlated with sugar production and stocks on the world market... purchase to read more