Industry Analysis & Industry Trends
The Sugar Manufacturing industry's performance over the past five years has been generally strong, despite facing erratic 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, while adverse weather conditions, including severe flooding, led to large supply declines in 2010-11.
The industry has also faced constraints on sugar volumes due to the limits on land available for cane growing. The industry has gone through a number of mergers, acquisitions and other rationalisation activities as producers have sought to minimise costs by increasing their economies of scale... purchase to read more
Industry Report - Industry Locations Chapter
Industry activity is heavily concentrated in Queensland. Since cane quality declines quickly after harvesting, sugar processors tend to locate close to sugarcane farms. Therefore, it is not surprising that the industry is heavily concentrated in Queensland given this state is home to about 90% of the country's sugarcane farms. Queensland provides ideal climatic conditions for sugarcane production due to its subtropical weather patterns characterised by plentiful sunshine and high annual rainfall. Queensland also has good infrastructure and a reliable irrigation water supply.
Queensland currently has 15 raw sugar mills, mostly around Bundaberg and between Mackay and Cairns. Two refineries also operate in Mackay and Bundaberg... purchase to read more