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Cotton Growing in Australia: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Cotton Growing Market Research Report | ANZSIC A0152 | Dec 2015

Growing pains: Oversupply of cotton and falling prices have reduced industry revenue

The Cotton Growing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Revenue
$879m
Annual Growth 11-16
-14.4%
Annual Growth 16-21
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Profit
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Employment
4,363
Businesses
504
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 - Starting a New Business Chapter

Overall, there are few barriers to entry into the industry. Generally, all inputs are readily available and there are often many farms for sale. Nonetheless, three possible barriers include capital investment requirements, water availability and problems securing finance for such investment. New participants must raise upfront funds to purchase land for cropping, buildings and general farm machinery.

For enterprises already engaged in other cropping, the cost of establishment is significantly lower. Nonetheless, cotton picking requires some specialised machinery, including a cotton picker and module builder. However, there is the possibility for new growers to overcome the cost of purchasing this machinery by employing a contractor to harvest their crop... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Cotton Growing Industry?

Farms in this industry grow cotton. Cotton is the white downy fibres grown on shrubby plants of the genus gossypium. These fibres are used to make textiles and other products.

Industry Products
Cotton lintCotton seeds
 
Industry Activities
Land cultivationCotton growingCotton baling


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