Industry Analysis & Industry Trends
The fortunes of Australian cotton growers are largely determined by external factors such as global cotton demand, the world price of cotton and domestic growing conditions. Although Australia is a small cotton producer on a global scale, the industry relies on exports through downstream industries. Nearly all of the cotton ginned is sold abroad due to the small size of the domestic textile manufacturing industry, along with the increasing penetration of fabric and garment imports. Other cotton-derived products, such as cottonseeds, are used by food manufacturers as feed and within the industry to grow new crops.
Trading conditions for Australian growers have fluctuated over the past five years due to increased volatility in the global cotton market... purchase to read more
Industry Report - Industry Analysis Chapter
Over the past five years, the Cotton Growing industry has faced extreme revenue volatility. Erratic climate conditions, major fluctuations in the global cotton price and reduced water availability have plagued the industry over this period. This has resulted in falling cotton volumes, and subsequently falling industry revenue. Revenue is estimated to fall at a compound annual rate of 14.4% over the five years through 2015-16.
Revenue and profitability
Falling global cotton prices and lack of rainfall led to falling production volumes over the past five years. This fluctuating nature of production causes the revenue volatility that characterises the industry. This is reflected in 2010-11, when revenue increased 136.1% compared with a 62.7% drop in 2014-15... purchase to read more