Cotton Farming in the US
The Cotton Farming industry has experienced extremely volatile operating conditions over the past five years. While revenue grew in 2017 due to shortages in the international market, revenue fell in 2015 due to a fall in exports driven by the appreciation of the dollar and a decrease in the price of cotton. Over the five years to 2018, industry revenue is anticipated to rise despite a decline in 2018 brought on by overseas competition and falling cotton subsidies. Therefore, revenue in 2018 is expected to rise to prerecession highs. Industry revenue is boosted by shortages in supply and sensitive to fluctuations in the exchange rate. Over the past five years, export growth has been limited, partly due to the appreciation of the US dollar, as well as normalizing conditions in the global cotton market. Over the next five years, the industry is expected to decline. However, despite small declines in revenue, the number of companies in the industry is expected to plummet as low subsidies drive cotton farms to consolidate.
Farms in this industry primarily grow cotton, which is typically used in textile manufacturing, while the plant’s cottonseed is exploited for its oil and used in some livestock feeds. Moreover, at least half of all cotton produced domestically is exported to overseas textile producers.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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