Industry Analysis & Industry Trends
The Cotton Farming industry in the United States has experienced extremely volatile operating conditions over the past five years. Due to large-scale fluctuations in demand and prices, industry profit margins have remained volatile. A fall in cotton prices after their artificial inflation in 2010 and 2011 reduced profit margins markedly. In the coming years, the industry is expected to consolidate. Barring any significant shocks, such as trade bans or floods, industry revenue is expected to slightly decline... purchase to read more
Industry Report - Industry Key Buyers Chapter
As an agricultural industry, cotton growing has a low level of ownership concentration compared to other sectors of the US economy. Nonetheless, the level of concentration appears to be rising over time. Over the past decade, the number of farms has been declining, while the acreage per farm has risen. According to the US Department of Agriculture, the result of this process has been a rise in the number of large cotton farms (over 1,000 acres), coupled with a fall in the number of small cotton farms (under 100 acres).
The pattern has been attributed to competitive and cost pressures that are forcing smaller farms to close as the industry moves toward large-scale production... purchase to read more