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