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 is reliant on exports through downstream industries. Over 80% of ginned cotton is sold abroad due to the small size of the domestic textile manufacturing industries and the increasing penetration of fabric and garment imports. Other cotton products, such as cottonseeds, are used by food manufacturers and within the industry to grow new crops.
Trading conditions for Australian growers have fluctuated over the past five years due to increased volatility on the global cotton market... purchase to read more
Industry Report - Industry Key Buyers Chapter
As the majority of agricultural operators are family-run farms, market shares are often highly fragmented across the sector. The Cotton Growing industry is no different in this respect, although some major players do run sizeable operations. Most of these major players are also vertically integrated, running their own ginning operations, as well as undertaking marketing and exporting. Almost 75% of businesses in the industry earned less than $2.0 million during 2012-13. In 2013-14, the four largest companies are expected to have accounted for significantly less than 20% of industry revenue, indicating a low concentration level.
Structurally, the industry is highly fragmented, with large players wielding slightly more market power... purchase to read more