Industry Analysis & Industry Trends
After a global sugar shortage caused sugarcane demand to jump, the industry faces more tepid conditions in the coming years. Consumers' growing health-consciousness will cause them to curtail their sugar consumption. Furthermore, the US government is easing its level of protection for sugar processors, who previously enjoyed inflated domestic sugar prices and a low level of import penetration. The scaled-back federal support for the downstream sugar-processing industry will in turn hurt sugarcane farmers... purchase to read more
Industry Report - Industry Investment Chapter
Compared with the rest of the farming sector, capital intensity in the Sugarcane Harvesting industry is high. Expensive tractors, harvesters and irrigation systems are commonly featured on sugarcane farms and are treated as depreciable assets. Much of the equipment purchased comprises start-up costs, which creates a barrier to entry for potential sugarcane harvesters. However, if an established farmer chooses to include sugarcane into their crop rotation, many of the start-up investments will be avoided.
Since labor is not a fixed factor, it fluctuates in response to changing industry and economic conditions. Labor requirements in sugarcane harvesting have declined in response to industry developments... purchase to read more