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src="http://www.ibisworld.com.au/common/newsletter/images/TOCtopleft.gif" alt="" /> </td> <td class="WhiteTop"> <img src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td style="width: 5px"> <img src="http://www.ibisworld.com.au/common/newsletter/images/TOCtopright.gif" alt="" /> </td> </tr> </table> <table border="0" style="width: 354px" cellpadding="0" cellspacing="0"> <tr> <td class="DarkGray"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td valign="top"> <table border="0" cellpadding="3" cellspacing="0"> <tr> <td rowspan="9"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="183" width="1" /> </td> <td colspan="2"> <p class="heading1"> IN THIS EDITION:</p> </td> </tr> <tr> <td width="30" align="center"> <a href="#aIndustry"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/placeholderarrow.gif" alt="" /></a> </td> <td class="tdToc"> <a class="menuitem" href="#aIndustry">In INDUSTRY </a> </td> </tr> <tr> <td align="center"> <a href="#aFocus"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td class="tdToc"> <a class="menuitem" href="#aFocus">COMPANY Connect</a> </td> </tr> <tr> <td align="center"> <a href="#aRisk"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td class="tdToc"> <a class="menuitem" href="#aGlobal">Global TRENDS</a> </td> </tr> <tr> <td align="center"> <a href="#aRisk"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td class="tdToc"> <a class="menuitem" href="#aRisk">Industry Risk</a> </td> </tr> <tr> <td align="center"> <a href="#aEconomic"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aEconomic">Economics & Demographics</a> </td> </tr> <tr> <td align="center"> <a href="#aRuthven"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aPresentation">Phil Ruthven - Presentation Material</a> </td> </tr> <!-- <tr> <td align="center"> <a href="#aNew"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aNew">What's New?</a> </td> </tr>--> <tr> <td align="center"> <a href="#aUpdated"> <img border="0" src="http://www.ibisworld.com.au/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aUpdated">Updated Reports</a> </td> </tr> </table> </td> <td class="DarkGray"> <img src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> </tr> </table> <table border="0" style="width: 354px" cellpadding="0" cellspacing="0"> <tr> <td style="width: 5px"> <img src="http://www.ibisworld.com.au/common/newsletter/images/TOCbottomleft.gif" alt="" /> </td> <td class="WhiteBottom"> <img src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td style="width: 5px"> <img src="http://www.ibisworld.com.au/common/newsletter/images/TOCbottomright.gif" alt="" /> </td> </tr> </table> </td> </tr> </table> </td> <td valign="top"> <table cellpadding="0" cellspacing="0" border="0"> <tr> <td valign="top"> <img src="http://www.ibisworld.com.au/common/newsletter/images/audate.gif" alt="" /> </td> </tr> <tr> <td height="10" /> </tr> <tr> <td> <table border="0" style="width: 256px" cellpadding="0" cellspacing="0"> <tr> <td style="width: 5px"> <img src="http://www.ibisworld.com.au/common/newsletter/images/PinkTOCtopleft.gif" alt="" /> </td> <td class="WhiteTop" style="background-color: #DDCDC6;"> <img src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td style="width: 5px"> <img src="http://www.ibisworld.com.au/common/newsletter/images/PinkTOCtopright.gif" alt="" /> </td> </tr> </table> <table border="0" style="background-color: #DDCDC6; width: 256px" cellpadding="0" cellspacing="0"> <tr> <td class="DarkGray"> <img src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="148" width="1" /> </td> <td height="161" width="308"> <p class="heading1" style="text-align: center;"> DID YOU KNOW?</p> <p class="textCenter"> The recorded music industry has changed phenomenally in the past five years. In 2003, there were around 30 legal download services available; now there are more than 500, enabling consumers to access more than 6 million songs online. </td> <td class="DarkGray"> <img src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> </tr> </table> <table border="0" style="width: 256px" cellpadding="0" cellspacing="0"> <tr> <td style="width: 5px"> <img src="http://www.ibisworld.com.au/common/newsletter/images/PinkTOCbottomleft.gif" alt="" /> </td> <td class="WhiteBottom" style="background-color: #DDCDC6;"> <img src="http://www.ibisworld.com.au/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td style="width: 5px"> <img src="http://www.ibisworld.com.au/common/newsletter/images/PinkTOCbottomright.gif" alt="" /> </td> </tr> </table> </td> </tr> </table> </td> </tr> </table> </td> </tr> </table> <!-- end header--> <table cellpadding="0" cellspacing="0" border="0"> <!-- main content--> <!-- industry in focus article --> <!--<tr> <td> <a id="aIndustry" name="aFeature"></a> <p class="heading2"> <br /> Easter</p> <table border="0" cellpadding="0" cellspacing="0"> <tr> <td valign="top" width="620" align="left"> <p>You know its Easter when the sky greys and, helped by daylight savings, darkens earlier each night. You know it's close when fluffy bunnies and bright yellow chicks start to appear in the windows of high street shops. But most of all you know its Easter when you see brightly covered chocolate eggs and animals, and smell the freshly baked hot cross buns. With Easter now behind us, it is a good time to take a look at the confectionary manufacturing industry. </p> </td> </tr> </table> </td> --> <tr> <td> <a id="a4" name="aFeature"></a> <table border="0" cellpadding="0" cellspacing="0"> <tr> <td> <a id="a3" name="aFeature"></a> <p class="heading2"> <br /> In INDUSTRY: Music in Australia  Is the Fat Lady REALLY Singing?</p> <table border="0" cellpadding="0" cellspacing="0"> <tr> <td valign="top" width="620" align="left"> <p>The internet's 15th birthday, which falls this month, is, for most industries, an occasion for celebration. The internet has allowed rapid communication and information transfers to propel the global economy forward in ways that were previously unimaginable. However, on the internet's 6th birthday, when an online, Peer-to-Peer (P2P) file sharing website named 'Napster' appeared, it may have sounded the death knell for the world's, and Australia's music industry. </p><p>The surge in illegal online file sharing is costing players in the <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=173">Recorded Media Manufacturing and Publishing</a> industry significantly, as estimates of up to $200 million in lost revenue a year suggest. The industry is expected to contract by nearly 5% per year over the next few years, as it appears unable to counteract, or adapt to, the new industry climate. However, it is not illegal trading of songs in mp3 format which appear to be most costly, but legal downloads from online stores such as iTunes and BigPond which are causing the most damage. </p><p>The Australian Record Industry Association reports that wholesale values of physical music fell by over $60 million in 2007, and only $12 million of that was made up by customers taking up digital music. In fact, total sales of physical music media fell from around $650 million in 2003 to $422 million in 2007, while digital sales only reached $39 million in 2007. </p><p>All this bodes ill for the <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=415">Recorded Music Retailing</a> industry, which is expected to drop in revenue by 1.7% this financial year, and 0.7% the year after, with a more severe fall only being averted by increasing sales in films and television shows on DVD, and with improving broadband connections, it is likely that they, too, will come under threat. Also, the <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=652">Sound Recording Studios</a> industry is expected to contract at around 1.4% per year for the next five years, as falling demand for music couples with improved home recording software, making the industry's services almost obsolete. </p><p>However, while most involved in music are looking like struggling in the future, the artists themselves may do far better, as the internet allows the audience to gain greater access to their music, and less money spent on CDs means more money spent on concert tickets and merchandise. <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=306">Musicians in Australia</a> currently generate just under $100 million, and this is expected to increase by nearly 4% per year over the next half decade. So perhaps the fat lady is indeed singing, but she will continue to be paid for it, while her patrons are more likely to face trouble. </p> </td> </tr> <!-- <tr> <td> <p class="ReportSectionTitle"> <br /> Industry reports relating to this article are:</p> <table border="0"> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com.au/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=626"> Child Care Services industry</a> </td></tr> </table> </td>--> </table> </td> </tr> <!--end industry in focus article --> <tr> <!-- company focus article --> <td> <a id="aFocus" name="aFocus"></a> <p class="heading2"> <br /> COMPANY Connect: Woolworths on track to meet forecast </p> <table border="0" cellpadding="0" cellspacing="0"> <tr> <td valign="top" width="620"> <p>The Woolworths group (Woolworths) is Australia's largest supermarket retailer, and one of the largest general merchandiser, wholesaler and specialty retailer of liquor, petrol, and electronic goods. The group has more than 3000 stores. It operates approximately 990 supermarkets under the Woolworths and Safeway brands in Australia, and under Woolworths, Foodtown and Countdown brands in New Zealand. </p><p>Woolworths is on track to meet its full-year sales forecast after reporting a sales growth of 10.2% in the third quarter 2008. Sales revenue for the quarter increased to $11.64 billion from $10.56 billion in the previous corresponding period. Total sales in the first three quarters of 2008 increased to $35.63 billion from $32.65 billion in the previous corresponding period, up 9.1%. This result bodes well for the group to meet its sales and earnings forecasts made in February 2008. Sales were forecast to grow by 8% to 10%. Net profit after tax was expected to grow in the range of 19% to 23%. Management has not changed these estimates. </p><p>Woolworths' Supermarket Division, which consists of Australian Food and Liquor, New Zealand Supermarkets and Petrol, recorded sales growth of 10.0% on previous corresponding period. Australian Food and Liquor contributed the bulk of this result, with sales rising 9.3% to $7.63 billion in the quarter. Six supermarkets and six Dan Murphy's stores were opened during the quarter. New Zealand Supermarkets reported sales of $1.07 billion, up 4.2%. Petrol sales, including Woolworths/Caltex Alliance sites, grew by 19.7% to $1.41 billion, underpinning higher petrol prices. One petrol canopy was closed during the quarter. </p><p>BIG W sales increased by 13.1% from $2.71 billion to $3.07 billion in the quarter. Three new stores were opened during the quarter. </p><p>Total Consumer Electronics sales grew by 13.7% from $313 million to $356 million in the quarter. Four new stores were opened during the quarter. </p><p>Hotel sales grew by 4.4% from $252 million to $263 million in the quarter. </p> </td> </tr> <tr> <td> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td> <p class="heading2"> <a id="global" name="aGlobal"></a> GLOBAL TRENDS: Food Production and Consumption: The China Effect </p> </td> </tr> <tr> <td valign="top" width="620"> <p>Food prices are soaring, wealthier Asian consumers are westernizing their diets, and farmers, let alone the nations of the third world, cannot keep up the pace. With the world population set to hit 9 billion by 2050, the urgency for another Green Revolution is becoming more and more pressing. </p><p>According to the UN, global food prices rose 35% last year, noticeably accelerating an upturn that began in 2002. To date however, prices have risen by 65%, bringing much needed attention to the crisis facing world food production and consumption. According to the UN Food and Agriculture Organisation's world food index, dairy prices rose nearly 80% in 2007 alone, while grain prices rose by 42%. </p><p>What is interesting about these statistics, secondary to the alarming prospect of food availability that they imply, is their divergent trend. The phenomenal growth in dairy prices, that are nearly double that of grain, illustrate the impact of changing Asian diets on global demand. The emergence of China's middle class has massively increased demand for not only basic commodities, but also high protein foods, such as meat and dairy products, as well as luxury processed products, like soft drinks and chocolate and confectionery. </p><p>The past five years have seen rapid growth in the contribution of Asian nations to the <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=335">Global Fluid and Powdered Milk Manufacturing</a> industry, which now account for more than 30% of production, while China alone accounts for more than 10% of <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=357">Global Fruit and Vegetable Processing and Preserving</a> industry production and consumption. The trend is similarly evident in industries such as <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=420">Soft Drink and Bottled Water Manufacturing</a>, as well as <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=359">Global Cocoa, Chocolate and sugar Confectionery Manufacturing</a>, forecast to grow by 5.7% and 10.0% respectively during 2008 in response to soaring demand in China and Southeast Asian markets. </p> </td> </tr> </table> </td> </tr> </table> </tr> <!--end industry focus article --> <tr> <!-- industry risl article --> <td> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td> <a id="a5" name="aRisk" class=""></a> <p class="heading2"> <br /> Industry Risk: Rudd Government's First Federal Budget </p> </td> </tr> <tr> <td valign="top" width="620"> <br /> <p>On May 13, Treasurer Wayne Swan delivered his first Federal Budget. Though final appropriation details were not available at time of writing, there is considerable pressure for the Budget to combat inflation while advancing the government's agenda in such areas as health and the environment. </p><p>On April 29, Climate Change and Water Minister Penny Wong indicated that the Budget would include $1.5 billion toward water projects, including desalination plants. Though the <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=304">Water Supply</a> industry should benefit from some of this funding in the long-term, the current state of the business environment in which this industry operates has led IBISWorld to apply a MEDIUM-HIGH risk rating for the 2008-09 outlook period, compared to MEDIUM in 2007-08. Slow population growth and slower growth in household expenditure are expected to see the industry's revenue grow at a rate of only 1% for the year. </p><p>It is anticipated that the Budget will also address the state of the housing market, with incentives to promote new construction and home affordability. IBISWorld sees risk in the <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=309">House Construction</a> industry as being at a MEDIUM-HIGH level, where it has been for four of the past five years. Rising interest rates and projections of a slowdown in dwelling approvals over the outlook period are factors placing upward pressure on risk, though industry revenue is expected to grow at a healthy rate of 6.7%. </p><p>Below is an outline of the historical and forecast risk score of the above mentioned industries. These can be compared to overall risk for the Australian economy. </p> <table border="0" cellpadding="0" cellspacing="0" class="tbl"> <tr> <td width="" class="tbcDarkGreen"> <strong>Industry Name</strong> </td> <td width="" class="tbcLightGreen"> <strong>2005</strong> </td> <td width="" class="tbcLightGreen"> <strong>2006</strong> </td> <td width="" class="tbcLightGreen"> <strong>2007</strong> </td> <td width="" class="tbcLightGreen"> <strong>2008</strong> </td> <td width="" class="tbcLightGreen"> <strong>2009</strong> </td> </tr> <tr> <td class="tbcMidGreen-leftalign"> <strong>Sport and Camping Equipment Retailing</strong> </td> <td class="tbcWhiteLeftAlign"> 4.71 </td> <td class="tbcWhiteLeftAlign"> 5.36 </td> <td class="tbcWhiteLeftAlign"> 4.93 </td> <td class="tbcWhiteLeftAlign"> 4.50 </td> <td class="tbcWhiteLeftAlign"> 5.10 </td> </tr> <tr> <td class="tbcMidGreen-leftalign"> <strong>Water Supply</strong> </td> <td class="tbcWhiteLeftAlign"> 5.63 </td> <td class="tbcWhiteLeftAlign"> 5.67 </td> <td class="tbcWhiteLeftAlign"> 5.50 </td> <td class="tbcWhiteLeftAlign"> 5.94 </td> <td class="tbcWhiteLeftAlign"> 5.75 </td> </tr> <tr> <td class="tbcMidGreen-leftalign"> <strong>Australian Economy</strong> </td> <td class="tbcWhiteLeftAlign"> 4.75 </td> <td class="tbcWhiteLeftAlign"> 4.79 </td> <td class="tbcWhiteLeftAlign"> 4.60 </td> <td class="tbcWhiteLeftAlign"> 4.74 </td> <td class="tbcWhiteLeftAlign"> 4.79 </td> </tr> </table> </td> </tr> </table> <p class="ReportSectionTitle"> Industry reports relating to this article are:</p> <table border="0"> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com.au/common/newsletter/images/documenticon.gif" alt="" /> </td> <td><a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=309">House Construction</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com.au/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=News&indid=304">Water Supply</a> </td> </tr> </table> </td> </tr> </table> </tr> <!-- end industry risk article --> <!--end industry focus article --> <tr> <!-- economics article --> <td> <a id="aEconomic" name="aEconomic" class=""></a> <table border="0" cellpadding="0" cellspacing="0" width="620"> <tr> <td> <br /> <p align="left" class="heading2"> Economic Scoreboard</p> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" width="620"> <tr> <td colspan="3" style="padding: 3px;" align="left" width="620"> <table class="tbl"> <tr> <td class="tbcDarkGreen"> </td> <td class="tbcLightGreen-NoAlign"> <b>Date</b> </td> <td class="tbcLightGreen-NoAlign"> <b>Score</b> </td> </tr> <tr> <td class="tbcMidGreen"> <a href="http://www.ibisworld.com.au/bed/retail.aspx?bedtid=360&bedpid=2434&bedid=362&chid=1"> GDP (seas. adj.)</a> </td> <td class="tbcWhite"> Dec qtr 07(annual) </td> <td class="tbcWhite"> 3.90% </td> </tr> <tr> <td class="tbcMidGreen"> <a href="http://www.ibisworld.com.au/bed/retail.aspx?bedtid=360&bedpid=382&bedid=383&chid=1"> Consumer Price Index</a> </td> <td class="tbcWhite"> Mar qtr 07 (annual) </td> <td class="tbcWhite"> 4.2% </td> </tr> <tr> <td class="tbcMidGreen"> <a href="http://www.ibisworld.com.au/bed/retail.aspx?bedtid=451&bedpid=2766&bedid=158&chid=1"> Unemployment (seas. adj.)</a> </td> <td class="tbcWhite"> Apr 2008 </td> <td class="tbcWhite"> 4.2% </td> </tr> <tr> <td class="tbcMidGreen"> <a href="http://www.ibisworld.com.au/bed/retail.aspx?bedtid=360&bedpid=2582&bedid=2598&chid=1"> Total Dwelling Units Commenced</a> </td> <td class="tbcWhite"> Dec qtr 2007 </td> <td class="tbcWhite"> 2.6% </td> </tr> <tr> <td class="tbcMidGreen"> <a href="http://www.ibisworld.com.au/bed/retail.aspx?bedtid=360&bedpid=2584&bedid=2610&chid=1"> Cash Rate Target</a> </td> <td class="tbcWhite"> May 2008 </td> <td class="tbcWhite"> 7.25% </td> </tr> <tr> <td class="tbcMidGreen"> <a href="http://www.ibisworld.com.au/bed/retail.aspx?bedtid=410&bedpid=3154&bedid=90&chid=1"> Exchange Rate - $US</a>