2011 Cotton benchmarking study underway
30 August 2011
Seasonal conditions, promising water allocations and a bounce in prices will see record plantings of cotton across the eastern states of Australia over the coming months. This combination of favourable factors has led to the reinvigoration of the Australian Cotton Comparative Analysis (ACCA) – a study which is widely regarded as the industry benchmark for the economics of cotton growing in Australia.
Boyce Chartered Accountants will again collaborate with the Cotton Research and Development Corporation (CRDC) to produce the ACCA, focusing initially on the 2010/11 season.
Phil Alchin, a Director of the Moree office of Boyce, said that the drought and insufficient water led to the ACCA results not being published since the last good cotton growing season in 2006.
“Interest in the study though has never waned with cotton-growers and others in the industry keen to see the re-emergence of this valuable resource,” said Mr Alchin (pictured at far right, with David Newnham, Associate Director - Boyce Moree on left, and in Bruce Pyke, General Manager - Cotton Research and Development Corporation, centre).
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.
Mr Alchin revealed that interim analysis of the 2010/11 ACCA figures, show an operating profit of $2,240 per hectare.
Boyce is renowned for its expertise in cotton, having worked closely with growers since the industry first emerged in the Gwydir Valley in the 1970's.
“Our experienced team know and understand the issues that can arise across all stages in the development of a cotton business, from start-up to maturity,” said Mr Alchin.
Such expertise will be widely sought by new entrants to the industry from the Murrumbidgee and Lachlan regions of New South Wales.
Boyce says it can assist growers to understand the economics of the cotton business and make good business decisions in regard to marketing the crop, review of new technologies, development of land and tax issues specific to the industry.
Boyce doesn’t just “talk” about its expertise in cotton, there is tangible proof. Clients of the firm have been awarded the Australian Cotton Industry “Monsanto Grower of the Year Award” for the past two years.
Linda Mackellar a Director of the Wagga Wagga office is the accountant for this year’s “Grower of the Year” award winner, the Willis family from Thallon in Queensland.
“We are extremely proud of the leading role the Willis family are playing in the cotton industry and would like to assist more growers to experience a similar level of success,” said Mrs Mackellar.
“The comparative analysis has proven to be, and will continue to be, a valuable resource in the challenge to achieve a sustainable competitive advantage for the Australian cotton industry.”
Mrs Mackellar explained that the analysis is produced on a per hectare basis to allow benchmarking of results between cotton farms.
“The power of this information means that each participant will always find areas for improvement in their own operation. New entrants to the industry such as the growers in Southern NSW will be able to benefit from the experience of the mature growers in the valleys in the Northern NSW and Southern QLD.”
This year, cotton will be planted across a huge area from the Lower Balonne in Southern Queensland, to the Border Rivers, Namoi a
nd Gwydir valleys in Northern NSW/Queensland, the Macquarie and Lachlan Valleys in Central Western NSW, to the Murrumbidgee in the South West of the State.
The 2011 Australian Cotton Comparative Analysis is due to be released in the first half of 2012.
Boyce will be holding seminars at the Griffith Ex-serviceman’s Club on Thursday 27 October 2011 to share the interim results of the study and impart some of the knowledge the firm has gained through working with the cotton industry for more than 35 years.
To register your interest in attending one of the seminars, contact Kathy Fixter of Boyce Wagga on 6971 0600 or by email to firstname.lastname@example.org.
Download an invitation and registration form for the seminar here.