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Sugar Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
Date:2/25/2013

Melbourne, Australia (PRWEB) February 25, 2013

The Sugar Manufacturing industry’s performance has been bittersweet over the past five years. It is at the mercy of erratic climatic conditions and global supply, demand and pricing fluctuations, which have caused revenue and profitability to vary dramatically. According to IBISWorld industry analyst Naren Sivasailam, “historically high sugar prices helped boost revenue over 2009-10, but could do little to offset losses flowing from steep declines in production over the subsequent two years”. Adverse weather conditions, including severe bouts of drought and flooding, led to huge declines in both supply and revenue.

“The industry has also contended with constraints on the volume of sugar that can be produced due to the limits reached on the land available for cane growing”, says Sivasailam. The Sugar Manufacturing industry has gone through a number of mergers, acquisitions and other rationalisation activities as producers have sought to minimise the impact of costs by increasing their economies of scale. This has resulted in just four players – Sucrogen Limited, Mackay Sugar Limited, Finasucre Investments (Australia) Pty Limited and MSF Sugar Limited – dominating the industry. Overall, these factors are expected to result in revenue declining by an annualised 11.3% over the five years through 2012-13.

Australian sugar manufacturers will continue to play second fiddle to global market dynamics, with supply and prices being determined by behemoths such as Brazil and India. Given the industry’s reliance on export revenue, domestic demand conditions are u
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