Industry Analysis & Industry Trends
Cotton farmers have withstood extreme volatility over the five years to 2013, especially as a result of world cotton shortages, which prompted US growers to increase exports. However, most recently, deteriorating revenue has been a result of plummeting world cotton prices, the receding level of industry assistance programs and record-high stockpiles. Unsurprisingly, the next five years, from 2013-2018, are anticipated to exhibit much of the same volatility and uncertainty for cotton farmers... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The US Cotton Farming industry's contribution to the overall economy is measured by industry value added (IVA). IBISWorld expects IVA to rise at an average annual rate of 1.7% over the 10 years to 2018. By comparison, US GDP is forecast to grow at an annualized rate of 2.1% over the same period. Therefore, the cotton farming industry is currently in mature stage of its life cycle, largely due to receding subsidies and volatile commodity prices.
Other factors pointing to this maturity include the steady consolidation of cotton farms and stagnant demand for the product. Over the five years to 2013, the number of cotton farms has declined from 9,548 to an estimated 7,983, reflecting an average annual decline of 3.5%... purchase to read more