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 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 decline at an annualised rate of 6.8% over the ten years through 2020-21, compared with projected annualised GDP growth of 2.8% over the same period. This indicates that the industry is underperforming the overall economy. Furthermore, the slow level of technological change and the degree of market saturation for the industry's products all demonstrate maturity in the industry's life cycle... purchase to read more