Cotton study interim results
1 September 2012
Boyce Chartered Accountants in conjunction with the Cotton Research & Development Corporation released interim results of the 2012 Australian Cotton Comparative Analysis (ACCA) at the Australian Cotton Conference held in Queensland last month.
The interim results reveal an average operating profit of $1,240 per hectare, well down from the $1,919 per hectare achieved in the 2011 season.
Boyce Moree Director, Paul Fisher noted that the key differences between the 2011 final result and the 2012 interim result were a reduction in price per bale achieved ($503/bale in 2012, $526/bale in 2011), reduced average yield (9.73 bales/ha in 2012, 10.04 bales/ha in 2011) and increased growing costs ($3,717/ha in 2012, $3,472 in 2011).
The increase in growing costs can be largely attributed to increased fertiliser costs ($545/ha in 2012, $387/ha in 2011) most likely as a result of increased back to back cotton and foliar fertiliser applied to water-logged cotton, and increased fuel costs ($438/ha in 2012, $258 in 2011) which may be partly attributed to pumping water off fields during flood events and on-farm repairs to flood damaged infrastructure.
As a result of the increased growing costs and reduced average yield, the interim results reveal an increase in the average cost of production from $346/bale in 2011 to $382/bale in 2012.
Based on the Boyce benchmarks of cotton growers’ budgets for the 2013 year, the cost of production is expected to reduce to below $3,450/ha or $345/bale (based on a yield of 10/bales/ha) in the 2012/2013 season.
Boyce has been publishing the ACCA since 1985. The 2011/12 results are expected to be finalised by the end of December.
Cotton growers are encouraged to participate in the 2012 study by contacting Linda Mackellar at Boyce Wagga (E: lmackellar@boyceca.com), Scott Christian at Boyce Dubbo (E: schristian@boyceca.com) or Paul Fisher at Boyce Moree (E: pfisher@boyceca.com).
Download a copy of the 2012 Australian Cotton Comparative interim results here.