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 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 SWOT Analysis Chapter
The industry is in a mature phase of its life cycle. The industry exhibits a high level of volatility, so growth rates of both revenue and industry value added do not have clear trends. The choice of starting and ending year has a large effect on annualised growth rates over most periods. The industry's contribution to the economy is expected to grow at an annualised rate of 1.6% over the ten years through 2019-20, compared with projected annualised GDP growth of 2.7% over the same period. This indicates that the industry is underperforming the overall economy. The upswing in production and prices, especially during 2010-11, resulted in the industry significantly outperforming the economy for a short period before prices collapsed... purchase to read more