What’s happening?
Australia’s cotton industry is celebrating its role in a major milestone for the nation’s agricultural sector.
New forecasts released by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) show Australia’s agricultural production value is expected to exceed $100 billion this year.
The forecast places the value of agricultural production at $101.4 billion in 2025-26. When fisheries and forestry are included, the combined value is expected to reach $107.4 billion.
The milestone will be achieved four years ahead of the sector’s 2030 target.
Cotton Australia CEO Adam Kay said the achievement reflects the ongoing contribution of cotton growers.
“I’m incredibly proud that our cotton growers have played a meaningful role in achieving this result,” Mr Kay said.
“Reaching this milestone four years ahead of schedule shows that Australian agriculture, including our cotton industry, is not only thriving but continues to set new benchmarks for productivity, thanks to the innovation driving industries like ours.”
Local impact
The cotton industry’s economic activity supports many regional communities across Australia.
With 92 per cent of growers’ earnings spent locally, most of the industry’s value remains within regional towns and businesses.
These spending patterns help sustain local jobs and essential services in cotton-growing communities.
Why it matters
The milestone highlights the strength of Australia’s agricultural sector and the role industries like cotton play in supporting regional economies.
In 2024, cotton contributed around $3 billion to the Australian economy. Previous economic studies show a large share of that activity occurs in regional communities where cotton is grown.
With most growers spending their earnings locally, the industry continues to support businesses, employment and services in rural towns.
“The cotton industry’s contribution to Australia’s economy is substantial and our growers continue to punch above their weight when it comes to injecting money back into our regional communities,” Mr Kay said.
“This ensures the growth of these communities, flowing back into securing local jobs and keeping essential services in those towns.”
By the numbers
• Australia’s agricultural production value is forecast to reach $101.4 billion in 2025-26, according to ABARES.
• When fisheries and forestry are included, the combined production value is expected to reach $107.4 billion.
• Cotton production in Australia is forecast to reach a gross value of $2.4 billion this financial year, representing three per cent of national agricultural production.
Zoom in
Cotton accounts for three per cent of Australia’s total agricultural production, according to ABARES.
The gross value of cotton production is forecast to reach $2.4 billion this financial year. Cotton Australia estimates the figure slightly higher at $2.9 billion.
Economic studies also show the industry’s strong regional contribution. Around $1.8 billion in direct economic activity occurs within the 250 regional communities where cotton is grown.
A further $4.7 billion flows indirectly across Australia.
Zoom out
Exports remain a major part of Australia’s agricultural performance.
ABARES forecasts agriculture, fisheries and forestry exports will reach $84.8 billion this year.
Cotton exports are expected to reach $3.2 billion, representing a five per cent decline due to lower export volumes and prices.
Exports are forecast to decline further to $2.8 billion in 2026-27 as export volumes fall.
Australia’s average annual cotton export price is expected to rise by one per cent to $2.8 per kilogram.
What to look for next
The outlook for the next cotton season will depend on rainfall and water availability.
The gross value of cotton production is forecast to fall six per cent to $2.2 billion in 2026-27. This reflects lower production volumes as planted area is expected to reduce due to lower water availability.
While seasonal conditions and pricing may place pressure on the coming season, Mr Kay remains optimistic about the industry’s future.
“We’re committed to building on this momentum, strengthening our communities, and ensuring Australian cotton remains one of the most trusted and sustainably-grown fibres in the world,” Mr Kay said.
