Industry Analysis & Industry Trends
Dry conditions in the past five years have stifled demand for turf products, as these conditions intensified maintenance costs for turf. Revenue for the Turf Growing industry is forecast to decline by an annualised 1.1% in the five years through 2014-15. This includes growth of 3.5% in 2014-15, to reach $243.0 million. Low annual rainfall during some years has made it difficult for turf growers to operate, as production costs have increased, further constraining profit margins. The industry is comprised of many small, non-employing enterprises, partly due to the industry's low barriers to entry and the absence of considerable economies of scale.
Dwelling commencements have been volatile over the past five years, but have generally trended upwards... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a moderate level of capital intensity. For every dollar spent on capital, an estimated $5.47 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 ploughs, boom sprayers and irrigation pumps, among others. Capital intensity is expected to have increased over the past five years, as industry operators invested in labour-saving equipment such as computer-assisted water and monitoring systems. Labour is used in the industry for planting, harvesting and installing turf... purchase to read more