Industry Analysis & Industry Trends
The Ethanol Fuel Production industry is running on fumes. The past five years have been good for the industry with production volumes rising. Revenue is forecast to grow at an annualised 6.4% over the five years through 2014-15 to reach $277.9 million. However, most of this growth has been due to government assistance. The industry is characterised by its reliance on heavy subsidies in the form of fuels excise rebates.
Despite some growth over the past five years, the future for the industry is bleak. The 2014-15 budget proposed the scrapping of the excise rebate. A... purchase to read more
Industry Report - Starting a New Business Chapter
The capital costs of establishing a new facility, the need to source competitively priced inputs, strong competition from incumbents and the limited scale of domestic demand for ethanol have been key barriers to entry in the past five years. The combination of the three has resulted in a situation where the industry is dominated by the three major players. As industry assistance is wound back, barriers to entry are expected to increase. To be successful as international trade increases, industry operators will need to be able to produce at lower costs, limiting industry profitability and further reducing incentives to enter... purchase to read more