Industry Analysis & Industry Trends
Stringent water restrictions following the drought have considerably constrained the performance of the industry over the past five years. Dry conditions over most of the past five years stifled demand for turf products, as they intensified maintenance costs for turf. The Turf Growing industry is forecast to decline by an annualised 2.5% in the five years through 2013-14. The industry is exhibiting signs of recovery, with revenue forecast to grow by 1.9% in 2013-14 to $232.9 million. Low levels of annual rainfall for majority of the past five years have made it difficult for turf growers to operate, and has induced the exit of less competitive operators... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a high level of capital intensity. For every dollar spent on capital, an estimated $5.54 is allocated for labour. In this calculation, depreciation is used as a proxy for capital. Equipment used in the industry includes tractors with turf tyres, fertiliser spreaders, mowers, chisel and mouldboard plough, boom sprayers and irrigation pumps, among others.
Almost all agricultural industries have a high level of automation in Australia. As such, the Turf Growing industry's high level of automation gives it a high level of capital intensity. Capital intensity is estimated to have increased over the past five years. Capital intensity increased as industry operators invested in more labour-saving equipment such as computer-assisted water and monitoring systems... purchase to read more