Australia Cotton Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)
Report on Australia Cotton Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)
Introduction to Australia Cotton Market
Australia is one of the world’s largest suppliers of cotton. Close to 95 percent of cotton is exported, mainly to China, Indonesia, and Thailand. In the country, cotton is majorly irrigated and grown in New South Wales and southern Queensland. Cotton is planted from September in Queensland to mid-November in NSW and then harvested from March to June respectively. The cotton production is forecasted at 4.7 million bales (480 pounds) for the year 2018-19 compared to 4 million bales in 2017-18. Australia has one of the highest cotton yields due to the high proportion of irrigation and the availability of genetically modified varieties of the crop, which allows for the relatively low use of both pesticide and irrigation.
Successful cotton growers employ the below strategies to distinguish themselves from the competitors and achieve higher yields.
- Controlled operating costs:
Operating costs for farmers have averaged $3,700/ha for the past five years. With careful planning, the farmers are able to keep their operating costs under control without sacrificing yield and yet sufficiently maintaining all assets.
- Consistent marketing strategies:
Having a perfect marketing strategy is the key to higher incomes. The top farmers know their cost of production per bale. They then base marketing decisions on that known cost. The strategies adopted by farmers depend on:
- Individual outlook on risk
- World-wide economic outlook
- Taxation implications
- Cash flow implications
- Water availability
- Level of knowledge on how to use the complex alternatives
- Productive labor:
Top-class results cannot be produced without having a top-class team of employees who are efficient, focused, motivated and stable.
- Reliable machinery:
In crop cultivation, timing is of the essence and so having reliable machinery is critical. Farmers who decide to own tractors to carry out all field operations, capacity of 350 to 400 engine horsepower per 500 hectares is generally required.
- Sustainable farming techniques (rotation):
Benefits of crop rotation can only be achieved in the longer term. Cotton growers, are rotating to address the issues of disease and re-levelling of their fields.
- Water use efficiency:
The timing of when water is applied is critical in the production of high yielding crops. With limited water supply and the knowledge of timing and understanding each cotton variety’s reaction to the timing is very crucial. Cotton growers are now paying closer attention to measuring water use efficiency.
By region of production:
- New South Wales: In NSW, cotton is also grown along the Barwon and Darling Rivers in the west, the Lachlan and Murrumbidgee Rivers in the south, and has been spreading into new regions such as Forbes.
- Queensland: In Queensland, cotton is grown mostly in Darling Downs, St. George, Dirranbandi, and the Macintyre Valley regions.
- For short season production systems (Siokra S-324, Siokra S-101, CS7S);
- For dryland production systems (Siokra L23, Siokra V-16);
- Premium fibre (Sicala 3-2, Sicala 34); and
- Fusarium Wilt resistance (Sicot F-1).
Cotton growers sell their cotton to one of a number of independent Australian merchants who then sell it into the world’s markets, aiming to get the best price possible. Some key merchants are Auscott Limited, Cargill Cotton, Ecom Commodities, Namoi Cotton, Reinhart Australia, S&G Cottton, etc. among others.
The report contains a comprehensive analysis on:
- Australia Cotton Market Segments
- Australia Cotton Market Drivers, Restraints and Opportunities
- Australia Cotton Market Size & Forecast 2016 to 2022
- Supply & Demand Value Chain
- Australia Cotton Market Current Trends
- Competition & Major Companies
- Technology and R&D Status
- Porters Five Force Analysis
- Strategic and Critical Success Factor Analysis of Key Players
This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors, and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.
- Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
- Consumer and Pricing Analysis
- Market dynamics of the industry
- In-depth Market Segmentation
- Historical and Projected Market Sizing in terms of volume and value
- Recent market trends and Impact Factors
- R&D Status and Technology Overview
- Extensive Industry Structure Coverage