Australian Cotton Industry Reports Early 2026 Harvest and Strong Export Performance

The 2026 Australian cotton harvest is approaching following a period of high temperatures in mid-February across several growing regions. Early reports indicate that the crop is developing slightly ahead of the usual schedule. Meanwhile, export shipments remained steady during January despite the month traditionally being quieter for trade.

Industry reports suggest the crop is progressing earlier than usual for some producers. Defoliation has already begun in certain areas, which could lead to isolated picking activity during March. However, the majority of harvesting is expected to take place in April, which aligns with typical seasonal patterns.

Limited ginning activity is expected before 13 April, meaning shipments from the new crop are unlikely to begin before May. Weather conditions during the coming weeks will remain an important factor for growers. Industry participants are monitoring forecasts closely following rainfall events in late March during the 2024 and 2025 seasons that affected fibre quality. While some rain has recently been recorded, forecasts currently indicate relatively dry conditions for the coming weeks.

Australian cotton exports remained firm during January, a month that typically records lower shipment volumes. Approximately 225,000 bales, equivalent to about 50,000 tonnes, were exported during the month. China, Vietnam and Indonesia remained the primary export destinations.

Total shipments for the 2025/26 marketing year, covering March 2025 to February 2026, have reached close to 5.5 million bales. Based on current export levels, the industry is expected to enter the 2026/27 marketing year with minimal stocks remaining.

The Australian Cotton Shippers Association (ACSA) has also been approved for funding through the Australian Government’s Accessing New Markets Initiative (ANMI), a $50 million program designed to support exporters in diversifying into new markets while strengthening existing trade relationships. The funding will assist ACSA in promoting Australian cotton across key export markets through a range of in-market promotional activities scheduled over the next 18 months.

The ANMI funding will also support domestic engagement initiatives. ACSA will facilitate access to funding for Cotton Australia to deliver several Cotton to Market programs, including the Australian Natural Fibres Forum organised in partnership with AWI and the Camp Cotton program scheduled for April 2026. These initiatives aim to connect Australian cotton producers with retailers, brands and other stakeholders in the fibre supply chain.

Separately, the Ord Valley in Western Australia is emerging as an area of renewed interest for cotton production as water storage levels decline across many east-coast growing regions. The region benefits from the water reserves of Lake Argyle, which holds approximately 10.7 million megalitres and is more than six times larger than the largest east-coast storage, Blowering Dam, which holds about 1.63 million megalitres.

Cotton production in the Ord Valley dates back to the 1960s and 1970s during the early development of the irrigation scheme. Production later declined due to pest pressure, particularly heliothis, along with low yields and poor fibre quality. Recent developments have supported a return of cotton production in the region, including the adoption of Bollgard 3 technology, reliable irrigation water, expansion of irrigated farmland and the establishment of a local cotton gin in Kununurra.

The Kimberley Cotton Company (KCC) gin has been a key development for the region. Previously, cotton produced in the Ord Valley was transported more than 3,400 kilometres to gins in Queensland, increasing costs and logistical complexity. The local gin was developed through collaboration between growers and support from state and federal governments.

The year 2025 marked a major milestone for the Ord Valley cotton sector. The planted area expanded significantly, increasing from less than 1,000 hectares in 2024 to nearly 10,000 hectares in 2025. The KCC Gin produced its first bale on 21 August 2025, and during its first season the facility pressed 81,042 bales.

Supply chain improvements have also been recorded. In October 2025, the first containerised shipment of Ord Valley cotton departed from the Port of Wyndham, with 60 containers loaded onto ANL’s vessel “Contship Yen.” Regular shipments have continued since then, with the final old-crop shipment scheduled to depart in late March 2026.

Another infrastructure development includes the commissioning of the Top End Classing facility in Kununurra, allowing cotton fibre testing and classing to be conducted locally and improving supply chain efficiency.

Looking ahead, industry participants are preparing for the 2026 season by focusing on agronomic improvements, logistics coordination and operational efficiency at ginning facilities.

The Australian Cotton Conference will take place from 4–6 August 2026 on the Gold Coast, Australia. The event will bring together growers, merchants, researchers and global supply chain participants. The program will address global market conditions, changes in trade flows, sustainability initiatives and supply chain transparency across the cotton industry.