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Sugar Cane Growing in Australia Industry Market Research Report Now Updated by IBISWorldMelbourne, Australia, Dec 18, 2012 (PRWeb.com via COMTEX) -- Australian sugarcane farmers have battled high industry volatility and adverse growing conditions over the five years through 2012-13 due to extreme weather patterns, volatile commodity prices and fluctuations in global sugar production. Over the five years, huge portions of Australia's sugarcane crop have been damaged or wiped out due to prolonged drought conditions, water scarcity, flooding and cyclones. According to IBISWorld industry analyst Suzannah Rowley, "The biggest losses for the industry occurred during 2010-11 as the devastation wrought by tropical cyclone Yasi and flooding across eastern Australia caused production and revenue to plummet". Industry performance has also been affected by the overall increase in global and domestic sugar prices as a result of increasing demand for alternative fuel sources such as ethanol, which is derived from sugar cane. This has helped offset some of the losses flowing from declines in production over the five years through 2012-13. However, it has not been enough to prevent the 4.5% annualised decline in revenue over the past five years. The Sugar Cane Growing industry's woes are expected to continue over 2012-13 given that the forecast rise in global production is expected to depress sugar prices and cause revenue to fall. The Sugar Cane Growing industry has a low level of concentration compared with other sectors of the Australian economy. "Generally, the industry is characterised by the presence of a wide range of small and medium-size sugarcane farms", says Rowley. There is only one major player in the industry - Finasucre Investments (Australia) Pty Limited. Industry consolidation is expected to increase the level of concentration over the five years through 2017-18 as smaller, less profitable growers leave the industry and larger farms expand their production area. There will be further challenges ahead for Australian sugarcane growers due to declining global sugar prices, and therefore expected declines in the domestic price for sugar cane. Added to this will be the increased likelihood of adverse growing conditions, given the possible onset of global warming. On a brighter note, increasing demand for alternative fuel sources will support industry growth and open up additional revenue channels for the industry. There will also be rising sugar consumption across many developing economies, which is expected to fuel demand for sugarcane growers and sugar exports. For more information, visit IBISWorld's Sugar Cane Growing report in Australia industry page. Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau IBISWorld industry Report Key Topics This industry consists of companies mainly engaged in growing sugar cane. Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle Products & Markets Supply Chain Products & Services Major Markets International Trade Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Basis of Competition Barriers to Entry Industry Globalisation Major Companies Operating Conditions Capital Intensity Technology & Systems Revenue Volatility Regulation & Policy Industry Assistance Key Statistics Industry Data Annual Change Key Ratios About IBISWorld Inc. Recognised as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886. Read the full story at http://www.prweb.com/releases/2012/12/prweb10249462.htm PRWeb.com |