Structural impediments and prospects for improved Australian cotton production

The cotton industry is Australia's fourth largest export earner. However, area of cotton harvested and production have been declining in recent years. The aim of this paper is, therefore, to identify the structural problems and to examine the prospects for improved cotton production. The findings of this study revealed that low relative prices, competition with other alternative enterprises for factor inputs, high cost of production, shortage of water, and chemicals impact on environment are the limiting factors for the industry's development. However, there is potential for improved cotton production, and Australia has to undertake research and development strategies in order to develop improved cotton varieties that resist insect attacks, reduce chemical use, maintain high yields, and improve quality of cotton and water management.