Sweet spot: Reduced output overseas is set to energise domestic growers' returns
In recent years, the Sugar Cane Growing industry has faced volatile trading conditions because of various factors, including variable weather patterns and fluctuations in global sugar production and commodity prices. Volatile weather conditions, including insufficient rainfall and flooding, constrained industry output over the four years through 2020-21. Sugar prices have been similarly volatile. The global sugar price plummeted in 2017-18 because of a hike in world production. Conversely, Australian farmers received higher prices in 2019-20 following a dip in global production. Both prices and output are set to skyrocket in 2022-23, owing to lower-than-expected output in overseas markets. This trend has expanded returns for domestic cane growers, boosting profit margins. Overall, industry revenue has grown at an annualised 5.0% over the past five years and is expected to total $1.92 billion in 2022-23, when revenue will jump by an estimated 25.8%.
Operators in the industry are primarily engaged in sugar cane growing.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Table of Contents
Methodology
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