Industry Analysis & Industry Trends
The Cotton Ginning industry is an important part of the Services to Agriculture sector and to the national cotton market, given that gins must process cotton into its constituent lint and seeds before it can be used. The performance of the Cotton Ginning industry is closely linked to its largest supplier, cotton growers, and indirectly to other factors including climatic conditions, growing conditions and fluctuations in global cotton production and prices. This explains the industry's high level of volatility over the past five years.
Over the next year, production volumes are expected to decline slightly but remain at elevated levels; however, a decline in global and domestic cotton prices is expected to cause revenue to fall 5.4% to reach $2.55 billion by the end of 2012-13... purchase to read more
Industry Report - Industry Investment Chapter
Within Australia's cotton-producing sector, most stages of the production process require a high level of capital intensity. The high capital intensity is a characteristic of a highly automated and mechanised industry, usually encountered in the harvesting process. However, labour requirements within this industry are higher than that of other stages of cotton production. Due to the nature of the industry, the amount of labour required remains fairly constant, with an average number of four to five employees per establishment.
Ginning uses a substantial degree of heavy machinery and many automated processes. The raw cotton is fed through machines that comb the cotton and separate the fibre from the rest of the plant... purchase to read more