The bitter truth: Adverse weather conditions have negatively impacted revenue growth

The Sugar Cane Growing industry has faced volatile trading conditions over the past five years, largely due to variable weather patterns, lower commodity prices and fluctuations in global sugar production. Favourable weather conditions allowed growers to increase sugar cane output over the three years through 2016-17. However, both drought conditions and flooding have had a negative impact on output over the past two years. Adverse weather in Queensland and a forecast decline in the domestic price of sugar are expected to reduce industry revenue by 16.8% in the current year. Overall, industry revenue is forecast to fall at an annualised 4.6% over the five years through 2018-19, to total $1.0 billion.Over 75% of Australia's processed sugar is more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • A forecast dip in domestic sugar prices is expected to reduce current-year industry revenue
  • Sugar cane yields dictate industry performance and are highly volatile from year to year
  • Industry growth prospects are positive but modest, given its vulnerability to external variables
  • Industry Report - Industry SWOT Analysis Chapter

    The Sugar Cane Growing industry is in a mature phase of its economic life cycle. However, a new cycle of growth could occur in the next decade given the increase in demand for alternative fuel sources. The most important determinant of an industry's life cycle is typically the industry value added (IVA), which is a measure of an industry's contribution to the overall economy. IVA is forecast to fall at an annualised 0.9% over the 10 years through 2023-24. This represents an underperformance of the overall economy, with GDP expected to grow at an annualised 2.7% over the same period. However, as industry revenue volatility skews this figure, it cannot be relied upon in isolation to determine the industry's life cycle...purchase to read more.

    Additional Insights for the Sugar Cane Growing Industry

    IBISWorld has determined the most important Key Success Factors for the Sugar Cane Growing are:

  • Ability to take advantage of government subsidies and other grants
  • Superior financial management and debt management
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from sugar manufacturing and Domestic price of sugar in the Sugar Cane Growing industry impact industry performance..

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    What's in this report

    What is the Sugar Cane Growing Industry?

    Operators in the industry are primarily engaged in sugar cane growing.

    Industry Products
  • Sugar cane
  • Industry Activities
  • Sugar cane growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from sugar manufacturing
  • Domestic price of sugar
  • Level of annual rainfall
  • Trade-weighted index

  • Current Performance
  • Production constraints
  • A global market
  • Export controversy
  • Profit fluctuations
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream


  • Global demand

    and supply

  • Domestic consumption
  • Table: Sugar Cane Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sugar Cane Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sugar Manufacturing

  • Key Selling Industries
  • Fertiliser Manufacturing
  • Livestock and Other Agricultural Supplies Wholesaling
  • Pesticide Manufacturing
  • Shearing, Cropping and Agricultural Support Services

  • Products & Services
  • Sugar cane
  • Chart: Sugar Cane Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Sugar cane exporters
  • Sugar refiners selling to supermarkets
  • Sugar refiners selling to industrial users
  • Sugar refiners selling to wholesalers
  • Chart: Major Market Segmentation for the Sugar Cane Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Sugar Cane Growing

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sugar Cane Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Sugar Cane Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Sugar Cane Growing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A side product of sugar cane production, bagasse is used as a fuel in some sugar mills, and can also be processed into paper and other fibre-based products.
  • Farm Gate Prices
  • Prices received by farmers, net of transport costs.
  • Molasses
  • A viscous by-product of the processing of sugar cane or sugar beets into sugar.
  • Tillage
  • Agricultural preparation of land for crop growing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sugar Cane Growing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sugar Cane Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sugar Cane Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sugar Cane Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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