2004 Cotton crop comparative analysis released by CRDC & BOYCE

14 Oct '05

2 min read

Cotton Research and Development Corporation (CRDC) and BOYCE Chartered Accountants published the 2004 Cotton Crop Comparative Analysis, which produces industry benchmarks for the economics of cotton growing in Australia.

This is the fourth year that the analysis has been completed and, while the report focuses on the 2004 crop, it also presents trends that have been measured against more than 10 years of data.

The key benchmarks identified in the analysis refer to yield, price per bale, operating costs, cost of production, and labour costs.

Key findings of the report include:

• 2004 was significantly affected by the drought, which caused a large reduction in hectares planted on each farm.

• While income received on a per hectare basis was above average, due to both good yield and price, the amount of cotton grown on each farm was not sufficient to cover the fixed and semi fixed costs.

• The costs on a per hectare basis increased dramatically due to the reduced economies of scale.

• The net result of a farm net loss after interest indicates that over half the participants in the analysis recorded a loss.

The report has also continued to measure the components that give farmers a stronger financial bottom line, and indicates that the industry is continuing to reinvest in BMP, sustainability programs and in the communities in which it operates.

CRDC's General Manager of Research & Extension, Bruce Pyke, said “As the industry goes forward after this drought, it can again begin to focus on sustainable measures to improve long term yields.

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