Vietnam Accounts For 37% Of Aussie Cotton Exports
Australian cotton is now exported to 16 different markets with Vietnam alone importing close to 37 percent of all Australian cotton exports.
Exports to Vietnam have been targeted by Australian cotton merchants under the federal government’s Agricultural Trade and Market Access Cooperation (ATMAC) program.
The ATMAC program has also allowed stronger engagement with Indonesia and Malaysia with the two countries combined now importing more than 20 percent of total cotton exports.
“There are some positive signs for the 2024 Australian cotton crop with global demand increasing while major competitors are facing crop shortfalls due to seasonal conditions,” Cotton Australia said in a press release.
“Cotton merchants and shippers are reporting a higher level of engagement with buyers from multiple countries, while emerging markets are stepping up their orders,” the agency added.
“Our farmers have virtually sold-out the 2023 crop and indications are we have forward sold about a third of our 2024 crop,” Cotton Australia CEO Adam Kay said.
Adam Kay said the industry was also in talks with India to double the Free Trade Agreement’s 50,000 tons of tariff free cotton.
Cotton industry forecasts for the 2023-24 crop range from 4 to 4.5 million bales with ABARES latest outlook for natural fibres forecasting the gross value of cotton to fall to Au $3.2 billion, down 8 percent from the estimated $3.5 billion in 2022–23.
“Global cotton prices are expected to increase by 2 percent in 2023–24, driven by expected higher consumption and lower global production,” Cotton Australia noted.