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Australia’s Cotton Industry Celebrated

Australia’s Cotton Industry Celebrated

2021-10-07

World Cotton Day

As a part of World Cotton Day, the nation’s cotton growers are being widely celebrated and hailed. This is because they have been an integral part of the agricultural community. This season has been one of the best so far. The productivity levels have been unlike any other season. The successful season is a direct result of increased international demand based on the abundant yield. The fruitful productivity is a direct result of promising seasonal conditions. Moreover, the water allocations have also been as per the choice of the growers. Hence, the cotton producers have had an exceptional growing season. The news of this celebration comes as welcome news as Australia’s cotton industry was completely sold out even though China had significantly reduced its purchase of this good from the nation.

Cotton Australia chief executive officer Adam Kay opined that the strong demand was proof the industry’s hard work in finding other international markets such as Vietnam and Indonesia was paying off. He stated that even though China is their top market, they needed other sellers in order to keep the industry going. This is exactly what the merchants have been successful in doing. Not only is cotton used in clothing, but it is also a food and fibre crop. Many of the farmers also secured contracts for their cotton on future markets. Hence, this accounts for a great start to the sales campaign for the season.

Australian Cotton Shippers Association chairman Michael O’Rielley said the industry was on the up after producing only 600,000 bales two years ago, 2.5 million bales last season to this year’s potential 4.5 million-bale harvest, thanks in part to the hard work of the entire industry and a grant from the Federal Government under the Agricultural Trade and Market Access Cooperation (ATMAC) Program. At the present moment, Vietnam is the biggest market followed by Indonesia. Since they are neighbours, the shipping time is extremely short. Therefore, they can be a lot more competitive when it comes to price. Even though the onset of the pandemic has greatly increased prices and competition, ports are now available with easier access. World Cotton Day comes after a recent study found the industry had drastically reduced the amount of water, insecticide and land required to produce a bale of cotton.

Article by: Hari Yellina (Orchard Tech)