Boyce has published the latest Australian Cotton Comparative Analysis, providing an independent snapshot of the performance, profitability and economics of irrigated cotton production across Australia. Produced since 1986, the report has become one of the industry's most respected benchmarking tools, delivering almost 40 years of comparative industry data.
The 2025 analysis highlights a resilient season, with improved yields and lower operating costs helping growers maintain profitability despite softer cotton prices.Â
Average cotton yields increased to 12.42 bales per hectare in 2025, up from 12.00 bales per hectare in 2024 and above the five-year average of 12.20 bales per hectare. The top 20% of growers achieved an average yield of 13.75 bales per hectare.
The average value per bale was $587, down from $664 in 2024 and below the five-year average of $641. This reflected a return to more typical market conditions following several years of exceptionally strong cotton prices.
Average operating costs fell to $4,856 per hectare, compared with $5,794 in 2024. Reductions in water costs, depreciation, wages and contract picking contributed to the lower cost base.
Despite lower prices, average growers generated a farm net profit of $1,780 per hectare, while top 20% growers achieved $3,480 per hectare.
Top 20% growers produced 1.33 more bales per hectare than average growers while spending $745 less per hectare on operating costs. This combination of higher yields and lower costs remains the defining difference between average and top-performing businesses.
The cost of production for average growers was $391 per bale, compared with just $299 per bale for top 20% growers. The report highlights that achieving high yields while maintaining disciplined costs continues to be the strongest driver of profitability.
Improved water availability supported increased planting area in 2025. However, the report identifies water cost and access as one of the most significant long-term challenges facing the cotton industry.
The report concludes that future profitability will depend on increasing yield, improving water-use efficiency, reducing wasted inputs and making sound capital allocation decisions. As input costs continue to rise and commodity prices remain volatile, benchmarking and continuous improvement remain critical for business success.
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Boyce has recently released the two-page 2026 Australian Cotton Comparative Analysis Interim Report, providing a mid-season snapshot of cotton production in Australia and early insights to help growers monitor emerging trends ahead of the next full analysis.
