AUSTRALIAN cotton growers look set to benefit substantially this harvest as world cotton consumption is forecast to exceed production for the first time in six years.
The record levels in consumption globally also correspond with record Australian yields throughout most cotton growing valleys in the country.
Cotton sown in the 2014-15 growing season was down by 46 per cent in comparison to the previous growing season to just 210,000 hectares throughout Australia, due to dry seasonal conditions in the lead-up to planting and reduced availability of water for irrigation.
However, production is on the rebound according to Cotton Australia chief executive Adam Kay who said growers in Victoria, NSW and Queensland were experiencing "phenomenal" yields this season.
"We have the highest yields in the world and this year we are up 10pc on record," Mr Kay said.
"In the past, Australian yield levels were the highest across the world and were at 10 bales/ha and this year we think the national average will be about 11 bales/ha – it is a massive jump in one year."
To Australia's advantage, lower cotton production is forecast in all major producing countries such as China, India, Brazil and the US, with forecasts predicting a 5-14pc decline.
Despite the dry start to the Australian growing season, Mr Kay said consistent temperatures and good grower management led to the record yields.
The Swan Hill region and both ends of NSW were reporting yields as high as 15 to 16 bales/ha, which would be significantly above the 2013-14 average of 9.95 bales/ha.
More than 2.2 million bales are expected to be harvested nationally this year, a recovery of 4pc, to 520,000 tonnes, according to the Australian Bureau of Agricultural & Resource Economics & Sciences (ABARES) latest commodity outlook.
With demand expected to be strong, cotton growers could be supported by a healthy returns of up to $500 a bale (227 kilograms), compared with $489 a bale in the previous year.
Although world cotton prices were forecast to fall this season, irrigated cotton was still expected to remain the most profitable irrigated crop in 2015-16.
Mr Kay said it was expected that the improved production would encourage growers to plant cotton if sufficient irrigation water was available.
"It will definitely drive participation back into the industry in southern NSW and Victoria," Mr Kay said.
"We are seeing people looking to increase their (planting) area too."
Last week, Cotton Australia hosted buyers for brands including Nike, H&M, Tommy Hilfiger, C&A, Wrangler, Adidas and IKEA, at the Australian Consulate in Istanbul.
The brands in attendance consume more than five times the volume of the average Australian cotton crop, every year, and were invited to hear the story of Australian cotton production by Goondiwindi, Queensland grower Simon Corish.
Mr Kay said the purpose of the event was to spruik the sustainable Australian cotton story to the the world's most influential fashion buyers.
"Cotton is still the world's number one natural fibre with a market share of 30pc of the world fibre market," he said.
"There is still major demand for cotton so we need to build confidence up the supply chain, beyond the merchants, so brands use cotton and hear about the responsible production of cotton in Australia that is free from child labour and abuses of pesticides."
