Show simple item record Alchin, Phil 2016-03-03T00:52:17Z 2016-03-03T00:52:17Z 2013-06-30
dc.description.abstract The 2013 Australian Cotton Comparative Analysis (ACCA) is the ninth report produced by Boyce Chartered Accountants in conjunction with the Cotton Research & Development Corporation (CRDC). In this report, we present an analytical review of the 2011 results, a comparison with prior years and comments on emerging trends. The 2013 was a very hot and dry season, with corresponding excessive water usage. Heat and flooding impacted yields and profitability. Net profit per hectare was well down on 2012 and the three year average. A low profit year puts pressure on the industry, with less money being available for debt reduction or reinvestment. In the 2012 report, we predicted that 2013 and 2014 would be tough financially for the industry. This has played out in 2013 and seems to be playing out with what looks like low water allocations for the 2014 year. This will obviously impact the ability of growers to further reduce debt. The data in the Cotton Comparative Analysis has in previous years been affected by low water; this was an issue in 2013 and 2014 is likely to be similarly impacted. While much effort continues to be invested in arguing whether or not climate change is real, our view remains that growers should spend their efforts on ensuring they can survive and indeed profit during extreme events. If this can be achieved, profit will be maximised regardless of the outcome of the climate change debate. Although we have not attempted to analyse in detail the return on assets from a capital growth perspective, we have noted that in the past, many growers have obtained a large increase in their net assets from the increase in the value of land and licences, rather than the accumulation of profits. It is probable that capital growth of water and land has slowed in established cotton growing valleys; for some growers this has formed the majority of their increase in net assets over time. The agricultural sector in general and the cotton industry in particular are known for their early adoption of technology. The technology available today, whether it is genetic, machinery-based or relating to systems and process, is no doubt leading to increased yield and reduced labour. The question is though, at what cost? If maximisation of profit is the goal, we think growers should establish the impact of technology on profitability before it is adopted. A slowing to the increase of asset values will see a greater focus on profits. This focus should hopefully result in farmers understanding what it takes to be in the top 20% and striving to ensure their business implements the necessary changes to achieve this objective. A healthy irrigated cotton farm cannot survive on capital growth alone. The 2013 Australian Cotton Comparative Analysis maintains our goal to measure and analyse the components that provide farmers with a stronger financial bottom line. The Australia cotton industry, through providing reinvestment in best management practice, sustainability programs and in the communities in which it operates, plays an important role in the agricultural sector of this country en_US
dc.description.sponsorship CRDC en_US
dc.publisher Boyce Chartered Accountants en_US
dc.relation.ispartofseries ;BCA1202
dc.subject Best management practise en_US
dc.subject profitability en_US
dc.subject sustainability en_US
dc.subject economic impact en_US
dc.subject climatic en_US
dc.subject seasonal en_US
dc.subject future leaders en_US
dc.subject crop rotation systems en_US
dc.subject adaptibility en_US
dc.subject vision en_US
dc.subject farming systems en_US
dc.subject bmp en_US
dc.subject trends en_US
dc.subject research en_US
dc.subject technology en_US
dc.subject adoption en_US
dc.subject uptake en_US
dc.subject rotation en_US
dc.subject water supply en_US
dc.subject WUE en_US
dc.subject efficiency en_US
dc.subject growers en_US
dc.subject average en_US
dc.subject yields en_US
dc.subject quality en_US
dc.subject challenges en_US
dc.subject measure and analyse en_US
dc.subject decision tools en_US
dc.subject survey en_US
dc.subject comparison en_US
dc.title 2011/2012 Australian Cotton Comparative Analysis en_US
dc.type Technical Report en_US

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