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 Investment Chapter
Cotton production is capital intensive due to machinery operations, cottonseed experimentation, and further research and development requiring high levels of capital investments. The industry is highly mechanised and is slowly reducing the intensiveness of labour functions such as cotton chipping. The Australian industry has come a long way, in the sense that cotton was once picked by hand. Now, with the development of insect-resistant plants and weed-protected fields, technology has significantly reduced the need for labour inputs. Using data from the industry cost structure, IBISWorld expects that for every dollar paid as wages during 2014-15, $0.64 is required to be invested in capital equipment and machinery... purchase to read more