Market Analysis of Cotton in Australia

Running head: AGRICULTURE PRODUCTION
AGRICULTURE PRODUCTION
Name of the Student
Name of the University
Author Note

AGRICULTURE PRODUCTION
Executive Summary
The report aims to describe the relevant market of the cotton in Australia in terms of its product
or service, degree of competitiveness and market structure which characterize the market of
cotton. The changes that have occurred are identified and their impacts are also discussed in
details. A proper analysis of the changing market conditions and the impacts are done thoroughly
by incorporating the supply and demand model along with the explanation of the determinants of
demand and supply. Finally a conclusion has been drawn about how the condition will affect the
global market.

AGRICULTURE PRODUCTION
Table of Contents
Introduction......................................................................................................................................4
Market Description..........................................................................................................................4
Changes in Market Condition and their Impacts.............................................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

AGRICULTURE PRODUCTION
Introduction
In Australia, the agriculture plays a very important role for the economy, contributing to
the overall economic, environmental and social sustainability. Australia is regarded as the major
producer and exporter of the agricultural products of the country. The nation exports 77% of
what it grows (Purves, Niblock, & Sloan, 2015). In 2016-2017 the country earned about $44.8
billion from the export, a rise from the previous export earnings of $32.5 billion as in the year
2010-2011. The agriculture sector is the best prospect industrial sector of the nation and greatest
contributor to the national Gross Domestic Product (GDP) growth. The sector contributes around
3% of GDP by employing roughly 4% of total country’s workforce directly. The agriculture
industry is one of the most important pillars having a worth of $60 billion to the Australian
economy (Pearce et al., 2018). Recently, it has become the rapid growing sector of the economy
even if the rate of growth differs with the seasons but still the growth trend is strong as well as
sustained. The Australian agriculture is becoming increasingly diversified with main crops
including wheat, rice, fruits, tobacco, coarse grains, oilseeds, cotton, sugarcane and others.
Among all these agricultural products, Australia accounts 99% of domestic cotton export and has
become one of the biggest supplier of the raw cotton in the whole world (Gain.fas.usda.gov,
2019).
Market Description
The wide open areas as well as healthy and favorable natural environment have made the
country, Australia, a perfect place for cultivating cotton. In the year 2015-2016, the healthy
cotton growing conditions along with proper water accessibility rose the productivity by 32%
accounting about 551 million kilograms of the produce. The cotton industry of the country has
become a successful industry in terms of efficiency, modernization and responsibility, producing