Home Facts trade

China cotton demand increase 25%

China cotton demand increase 25%

Write: Bledig [2011-05-20]
Cotton is predicted to remain the most profitable irrigated crop in Australia, with a forecast production of 720,000 tonnes by 2012-13. Strong demand and production shortfalls mean a higher price is likely to continue for the foreseeable future, while increased availability of irrigation means disappointing shortages of the past few years can be overcome - the 2007-08 harvest being the lowest since 1982-83.

World cotton consumption is projected to grow by 25 per cent a year, driven by needs in developing countries and mill consumption in China. The gradual easing of world trade barriers will also contribute to the demand for cotton. The desire to plant more cotton in Australia is therefore likely, with improvements in integrated pest resistance, especially through the use of GM varieties, allowingcotton to be planted in the tropical regions. Rotation plantings in the Burdekin are also expanding, with a possible 3,000 hectares by 2012-13.

Climate change and rainfall variations will affect the cotton industry, with reduced rainfall in some southerly regions being matched by increased rainfall in the north. However these are long-term impacts, and will not have a short-term affect on the industry.