The Australian Bureau of Agriculture and Resource Economics and Science (ABARES) said that cotton prices will rise as consumers' demand for cotton garments increases.
Australian wool and cotton production is expected to be affected by dry climate between 2018 and 2019, according to a report released by the Australian government. ABARES expects that wool production in the 2018 and 2019 season is to reach 385,000 metric tons, down 8.9% from 422,000 metric tons in 2017. The report indicates that it’s due to the decrease in wool production of per sheep. It is expected that during the period of 2018-2019, wool exports will be reduced to A$4.01 billion, which is lower than the A$4.38 billion in the same period of 2017.
In addition, ABARES pointed out that during this period, the decrease in cotton production was mainly due to the significant reduction in the dam level of the irrigated cotton fields and the low soil water content, resulting in a reduction in cotton acreage. Therefore cotton prices are expected to rise by 2% as the demands of cotton increases. ABARES said that increased demand for cotton garments will drive cotton exports to $2.65 billion, compared with $2.13 billion in the same period in 2017.
The report also pointed out: “Concerns about the environmental impact of synthetic fiber materials have contributed to increased use of cotton in textile products; increased procurement of cotton textiles and garment is expected to be driven by the increase of middle class consumers in emerging economies.”
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