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MECAS(04)15 - Transition, Rationalisation and Diversification in Australia’s Sugar Industry: implications for export prospects

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Australia’s embattled sugar industry is entering a period of significant transition driven by the need for rationalisation, reform and diversification.

Australia’s embattled sugar industry is entering a period of significant transition driven by the need for rationalisation, reform and diversification. Bolstered by the recovery in world sugar market prices during 2004, and aided by the Federal and State government restructuring packages announced in May this year, the industry is looking to re-establish itself with a sustainable and viable long term future. Furthermore, additional regulatory reform was agreed in April this year in an effort to ensure there were no legislative impediments to achieving industry productivity gains. Industry outcomes will take some time to unravel, and will depend on how the industry reacts to regulatory reform, the government restructuring and assistance package, and the way it responds to continuing global challenges.

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