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Australia set for record cotton output in 2012-13
Aug '12
In spite of a decline in its area under cotton cultivation, Australia’s cotton production is likely to witness a historic high in 2012-13, as adequate water availability boosts productivity, said Rabobank International.
The expected record production of 4.95 million bales in 2012-13 would make Australia the world’s second-largest cotton exporter, a report released by the bank stated. Output for 2011-12 came to be over 4.5 million bales, the current record-high, it added. (1 bale = 227 kgs = 500 pounds)
Since achieving a record high cotton production in 2011, cotton prices have dropped by about 67 percent. The increase in supply, along with sluggish global economic growth is holding back the demand for cotton. 
Recently, the US Department of Agriculture slashed its global demand outlook by 0.8 percent to 108.16 million or 480 million bales, while augmenting the world stockpiles outlook by 3.1 percent.
Speaking on the sidelines of a cotton conference on the Gold Coast in Queensland State, Rabobank Analyst Tracey Allen said, water availability during dry season would boost cotton production. 
Water supply has increased on account of La Nina linked rains in eastern parts of the country. However, the Bureau of Meteorology has predicted that an El Nino, which brings drier-than-normal weather, may hit the country during late Australian winter or spring.
According to Rabobank’s report, around 34,000 hectares (84,014 acres), or 30 percent of the 2011-12 dryland cotton area, may slip out of cotton cultivation during 2012-13, mainly because of lower prices and on expectations of drier-than-normal weather.
According to a recent United States Department of Agriculture (USDA) report, the US is set to become the world’s largest cotton exporter in 2012-13, followed by Australia.

Fibre2fashion News Desk - India

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