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 SWOT Analysis Chapter
The industry is in a growth phase due to very high industry revenue growth rates in the five years through 2014-15, which started off a low base when the industry was recovering from a major drought. The industry's contribution to the economy is expected to grow at an annualised rate of 6.1% 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 outperforming the overall economy. The upswing in production and prices, especially during 2010-11, has contributed to this expected outperformance. However, this obscures the obvious signs of maturity in the industry, indicated by the rather slow level of technological change and the degree of market saturation for the industry's products... purchase to read more