IBISWorld’s business information analysts have revealed the top five Australian industries expected to grow and shrink in 2017-18, and food sectors have made it onto both lists.
According to the research, this should be the year the Dairy Cattle Farming industry bounces back. Following a year of low prices and depressed milk production, conditions have begun to stabilise, while demand and returns for domestic dairy products is rising.
“With the Australian dollar projected to depreciate this year, we anticipate local dairy products will become more competitive in export markets, boosting returns to domestic milk processors, which will then flow through to dairy cattle farmers. We’re also expecting an increase in the size of the national dairy cattle herd, which will drive up milk volumes, and contribute to an expected 8.0% increase in revenue in 2017-18,” said IBISWorld Senior Industry Analyst William McGregor.
However, things are not looking as positive for sugar manufacturers. An expected oversupply in global sugar markets is tipped to drive sugar prices down this year, with IBISWorld forecasting revenue for sugar manufacturers to decline by 12.5 per cent.
“Domestic sugar output is projected to decline this year following the bumper crops of 2016-17, and with two-thirds of Australian sugar destined for export markets, global conditions – including consumption not matching production growth – will contribute to revenue declines for local sugar millers,” said McGregor.