Interim Australian Cotton Comparative Analysis for the 2017 Season
14 September 2017
EARLY insights show the average cotton grower can expect to pocket about $1,300 a hectare for the 2017 season.
That was the headline finding of the Australian Cotton Comparative Analysis (ACCA) Interim Results for 2017, released this week.
The ACCA is a management tool for growers produced by Boyce Chartered Accountants in conjunction with the Cotton Research and Development Corporation.
The 2017 Interim results are available to download HERE with the final 2017 ACCA due to be released in the first half of 2018.
The aim of the study is to collect and critically analyse data that will assist the industry to grow and develop sustainably, through a focus on best practice techniques. Now in its 31st year, the valuable real time data continues to identify shifts and trends within the industry.
The interim results showed an operating profit of $1,323 per hectare for the average growers in the study’s sample to date. The all farms average for 2016 was $2,092.
The ACCA’s interim data for 2017 showed cotton’s yield was down this year at 10.29 bales compared to 12.95 for the 2016 year. While the value of lint has remained relatively steady, the interim results showed the cost of production per bale has increased, predominately due to yield reduction. The cost to produce a single bale in 2016 was $347 compared to $383 for 2017.
The ACCA is relied upon by growers to implement change and to identify where effort should be directed on a day to day basis. Now in its 31st year the real time data continues to identify shifts and trends within the industry.
Paul Fisher, a director from Boyce Chartered Accountants at Moree, said although it was recognised that the numbers in the final report will vary from this interim report, it was important to publish these figures before planting of the 2017/2018 crop commenced.
“This will allow growers to compare their individual 2017 results against the 2017 interim average across the industry and to assist with the financial year 2017/2018 budget process,” Mr Fisher said.
Boyce has worked closely with cotton growers since the industry first emerged in the Gwydir Valley in the 1970’s. With the expansion of the industry in the southern regions, Boyce Wagga Wagga is providing advice to growers with the benefit of experience.
Financial analysis using comparative statistics helps farmers identify relative strengths and weaknesses; accompanying budgets and long term business plans will then focus on ways to overcome weaknesses and build on strengths.
The 2017 Interim results are available on Boyce’s website. The final 2017 ACCA is due to be released in the first half of 2018.
If you would like to participate in the ACCA contact Sam Bacigalupo on (02) 6751 2000 or Hamish Cullenward on (02) 6971 0600.