Cotton Industry showing resilience

Cotton farming in Australia is a critical industry for the Australian economy and it is expected that this years harvest will be significantly larger than last years. The expected value of the harvest is expected to exceed $1.5 billion. This large increase in production is concerningly on the back of the Chinese import restrictions on the product as part of the greater trade war currently in progress.

Australian cotton farmers have experienced extended periods of drought with the product over the last few years being as low as it has been. In fact, 2020 produced one of the lowest amount of cotton in the history of Australia’s cotton production with only 600,000 bales produced. To put this in perspective, the number of bales produced this year will be in excess of 2.5 million bales. The target number of bales that industry would ideally produce is around 4 million bales.

This year has been good for farmers with better weather conditions allowing farmers to plant cotton on 395 per cent more area than last year, equating to 295,000 hectares.

The China trade war has caused major concerns however fortunately cotton prices are at some of the highest levels seen in recent times meaning Cotton farmers are able to redistribute product to other markets around Asia.

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