Australian sugar manufacturing sector grows to $3.9 billion

The Australian sugar manufacturing sector has grown steadily over the last five years to be worth approximately $3.9 billion, according to new figures from IBISWorld.

The market research firm’s Sugar Manufacturing in Australia – Market Research Report (2015-2030) finds that the Queensland-dominated industry achieved a compound annual growth rate of 2.3 per cent over the last five years. 

Export growth has helped the industry counter fluctuating weather patterns and commodity prices in that time.

An advanced infrastructure and transport network has developed in Queensland and northern New South Wales to move sugarcane from farms to mills, then to export markets after processing.

“Queensland has six purpose-built bulk sugar terminals positioned at deep-sea ports across the state's east coast,” a report summary explains. 

“The terminals are strategically positioned to best serve the major manufacturers, ensuring storage maintains high product quality before exportation. 

“Ports like Townsville, Bundaberg, Mackay and Mourilyan feature advanced conveyor systems that efficiently transport products from land to sea.”

It counts 25 companies in a sector employing roughly 4,600 people and concentrated in Queensland. The three largest businesses are Wilmar Sugar, MSF Sugar and Mackay Sugar.

The research predicts the export-heavy industry to decline over the next five years, citing tariffs.

Picture: credit Mariordo (CC BY-SA 3.0)