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 Key Buyers Chapter
The industry has a low level of market share concentration. The four largest turf-growing companies are estimated to account for less than 10.0% of industry revenue. The low level of market share concentration is due to the lack of economies of scale. Instead, operators tend to specialise in serving markets close to their establishment. This is because of the large transport costs associated with moving products that are low-value by weight. The low level of differentiation between turf products also contributes to the level of market share concentration. Turf products are fairly homogenous, and the larger industry players are unable to significantly differentiate their brands in order to charge a premium... purchase to read more