Cotton Australia, Media Release, 3 March 2026
Australia’s cotton industry is today celebrating its contribution to the milestone set to be reached by Australian agriculture this year, with gross production value to exceed $100 billion – four years ahead of the 2030 target.
The latest forecasts from the Australian Bureau of Agricultural Resources Economics and Sciences (ABARES) released today show Australia’s agricultural production value will reach a record $101.4 billion in 2025-26, and a total of $107.4 billion combined with fisheries and forestry.
Cotton makes up three per cent of Australia’s total agricultural production, according to ABARES, with the gross value of cotton production forecast to be $2.4 billion this financial year – slightly more conservative than Cotton Australia’s estimates of $2.9 billion.
Cotton Australia CEO Adam Kay said surpassing the $100 billion in production value is a significant achievement for the agricultural industry as a whole, but it also reflects the invaluable contribution our growers make season after season.
“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.”
In 2024, cotton contributed around $3 billion to the Australian economy. Based on previous economic studies, this equates to roughly $1.8 billion in direct economic activity in the 250 regional communities where cotton is grown, and more than $4.7 billion indirectly across Australia.
With 92 per cent of cotton growers’ earnings spent locally, Mr Kay said most of cotton’s economic benefit stays within regional towns and businesses.
“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.”
Agriculture, fisheries and forestry exports are also forecast to increase this year to $84.8 billion, according to ABARES. This includes $3.2 billion in cotton exports, a decline of five per cent as a result of both lower export volumes and prices.
Cotton exports are forecast to fall a further 13 per cent to $2.8 billion in 2026-27, reflecting lower export volumes, while Australia’s average annual cotton export price is expected to rise by one per cent to $2.8 per kilogram.
The gross value of cotton production is also forecast to fall a further six per cent to $2.2 billion in 2026-27, reflecting lower production volumes due to reductions in planted area as a result of lower water availability. Total production will depend on rainfall and water availability in the coming months.
While seasonal conditions, and uninspiring pricing might put downward pressure on the coming season’s crop, Mr Kay is optimistic that cotton will continue to be a significant contributor to Australia’s economy.
“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.
