Australia'S Cotton Acreage Is Expected To Hit Its Lowest Level In More Than 40 Years.

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"This is directly related to water resources," said Adam Kay, chief executive of Cotton Australia.

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"Without irrigation water, our farmers can't sow cotton," he said.

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According to data from the US Department of agriculture, Australia is the third largest cotton exporter in the world in 2018-19, second only to the United States and Brazil. Abares forecast in December that Australian cotton exports in 2019-2020 are expected to fall to 890 million Australian dollars ($588 million), far below the 2 billion 560 million Australian dollar in 2018-19.

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The drying up of dams and soil desiccation are not the only challenges facing the Australian cotton industry. The outbreak of new crown pneumonia has led to delays in China's cotton transport in important markets, and the market is increasingly worried that factory closures will put pressure on cotton demand.

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The outbreak of the new crown virus has resulted in more than 2600 deaths worldwide.

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WHO reported on the 8 day that as of 10 hours in Central European time 8 (Beijing time 8 at 17 o'clock), the world's data received by the World Health Organization showed that the number of countries and regions affected by the new crown pneumonia epidemic outside China has reached 101.

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The who daily epidemic report shows that the number of confirmed cases of new crown pneumonia outside China increased by 3610 cases, reaching 24727 cases, and the death cases increased by 71 cases, reaching 484 Cases.

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Data released by the Ministry of health of Commonwealth of Australia on 9 may show that the number of confirmed cases of new crown pneumonia has risen to 80 in the country as at 9 o'clock local time at 11 local time, 6 cases more than 8 days.

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Kay said: "the operation of Chinese factories and textile mills will definitely slow down a lot. This is one of the concerns. "

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He said: "China is an important consumer of cotton in Australia, so we hope that the problem can be resolved as soon as possible."

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According to Australian Cotton Shippers Association, Australia's export business to China has not been affected so far, because exports are usually off season in the first quarter. But if the supply chain fails to return to normal before the end of March, it may be another scene.

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Speaking back to darling, the situation is moving in the right direction. McLean saw that the rainfall in January was more than that in 2019, and the once gray hills became greener. But for most summer crops, heavy rain is too late, so manufacturers can only feel the benefits of rainfall after 12-18 months.

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McVey said that before planting in winter, more rain is needed to improve soil moisture. "You can't expect a rain to change things overnight," he said.

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He added: "the negative market sentiment around the cotton industry has increased, and how to use irrigation water resources is also a big problem for cotton farmers."

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"Everyone is struggling," he said. 　　

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