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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 unlikely to provide any respite from volatilities in the world sugar market. Producers are thus expected to diversify into ethanol and renewable energy generation. Improvements in technology such as genetically modified and organic farming techniques are expected to boost profitability over the next five years as disease-resistant crops and higher margin products help offset movements in price fluctuations in the global market.

For more information, visit IBISWorld’s Sugar Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Sugar manufacturers process sugarcane to create raw or refined sugar, or molasses. These products are then exported or sold to food manufacturers, grocery wholesalers and supermarket chains.

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.

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