The Australian Cotton Shippers Association (ACSA) and Cotton Australia (CA) have received a $692,456 grant from the Australian Government to develop and implement a strategy for market diversification.
Minister for Agriculture and Northern Australia David Littleproud said the grant would play an important role in coordinating a plan for the future of Australia's cotton industry.
"This grant will establish a long-term strategy for market diversification for the entire cotton industry," Minister Littleproud said.
"This will explore as many options as possible to make Australian cotton a fibre of choice for textile manufacturers.
"It will look at markets with huge growth potential, like Bangladesh, Pakistan and Vietnam; it will also look at consumer education through digital platforms.
"The more consumers, brands and retailers understand about the sustainability and quality of Australian cotton, the more they can make informed decisions when buying."
Cotton Australia CEO Adam Kay said that market diversification was crucial in the next two years.
"We're forecasting a good crop in 2021 and a huge crop in 2022 - 635,000 tonnes this year and 1 million tonnes next year," Mr Kay explained.
"Working closely with our customers, retailers and brands will increase demand for the sustainable high-quality cotton we produce and avoid stockpiling product."
ACSA Chairman Michael O'Rielley said that the cotton industry was grateful for the chance to boost the industry.
"We know putting all your eggs in one basket isn't a good idea - that's just common sense and it's been backed up by research," Mr O'Rielley said.
"Market diversification is the way out of any future shocks, whether it's market disruption or a global pandemic."
Fast Facts:
- The Agricultural Trade and Market Access Cooperation (ATMAC) Grants have been awarded under the Australian Government's Agri-Business Expansion Initiative (ABEI).
- The Australian government has invested $72.7 million through ABEI to help Australia's agricultural, forestry and fisheries industries diversify and expand their export markets.
- Cotton production in Australia is projected to boom, with cotton plantings increased from 69,400 hectares in 2019-20 to a forecast 297,000 ha in 2020-21.
- Nearly 100 per cent of Australian cotton is exported.
