Aussie Cotton Spins Export Success In Indonesia
Indonesia is becoming a growing market for Australian cotton as Australia’s competitively priced, high-quality cotton is stealing market share from the US and Brazil.
Indonesia accounted for 12 percent of total raw cotton bales exported in the 2022 season, up from 9 percent in 2019, because Aussie cotton is well regarded in Indonesia for its high quality, consistency and contamination-free status.
‘Indonesia is now our second largest cotton export market after Vietnam. With support from Austrade, we’re continuing to build relationships with Indonesian spinning mills and making new connections in the textile industry,” Rob Cairns, Australian Cotton Shippers Association’s (ACSA) Export Marketing Consultant said.
Indonesia based Indorama has been buying Australian cotton for more than a decade and is one of the top buyers of Aussie cotton. 28 percent of the cotton that Indorama purchased in 2022 came from Australia, up from 5 percent in 2020.
“We buy Australian cotton because its quality is consistently outstanding as the fibre quality is everything we require to make a high-quality yarn,” says Gaurav Aggarwal, Commercial Head at Indorama.
“Approximately 90 percent of Australia’s cotton businesses are family farms and these farms employ over 10,000 people, excluding on-farm contractors,” an Austrade report informed.
ACSA is an association of 14 cotton merchants. They buy cotton from growers and sell it to spinning mills and the textile supply chain. Members are involved in the entire cotton supply chain, from field to processing at the gin, and cotton classing, warehousing, shipping and delivery.
