As the Australian Cotton Shippers Association (ACSA) return from another successful in-market visit, Export Marketing Consultant Rob Cairns reflects on the importance of these events and value to the industry.
For decades the Australian Cotton Shippers Association (ASCA) has conducted in-market visits to key export destinations to build deeper relationships with new and existing customers. With the support of the Australian federal government, AUSTRADE and individual merchant members these Export Market Development (EMD) trips were usually conducted once a year.
More recently the Australian government has provided financial support to commodities, including cotton, via the Australian Trade and Market Access Program (ATMAC). This program provided grants for projects that harness opportunities to access new markets and strengthen market presence through existing channels for commodities affected by market disruptions and which have restricted access to key destination markets. Trade diversification and expansion is key to Australia’s future prosperity, as well as for the industry to reach Australian agricultures ambitious goal of a $100 billion agricultural sector by 2030. Cotton plays an important role in Australian agriculture and support many farming families, rural commodities and associated sectors.
This support has been particularly important off the back of years-long COVID travel restrictions and the sudden loss of the Chinese market.
With this federal government support in the past two years ACSA has conducted visits to Vietnam (twice), Indonesia (twice), Thailand, India, Bangladesh and, most recently, Turkey.
Over 1000 people have attended seminars on these trips. All provide the opportunity for the Australian cotton industry to showcase our superior fibre and sell our competitive advantage over any other growth in the world.
Mill visits, agent briefings and government hosted events also increase the engagement opportunities and business development.
This promotion and market development has been vitally important with the Australian industry producing records crops over the past two years and another big crop expected next year.
On our last trip to Vietnam ACSA, for the first time, invited Australian brands and retailers to join us in-country. It connected people and businesses who hadn’t before and provided for the development of commercial relationships utilising Australian cotton from farm right through to garment. This allowed those brands to see firsthand Australian cotton being spun and its progression through the supply chain to final product.
Australia is the leading supplier of high-quality fibre to the world market. Australia’s cotton industry prides itself on continuous improvement and consistently delivers high quality fibre that offers spinners low breakages and stoppages, good throughput efficiency and uniformity of yarn.
We were delighted to also be joined on our Vietnam trip by Dr Stu Gordon from the CSIRO who was able to provide a technical overview of our fibre (length, strength, micronair, uniformity and contamination free) and its use value to spinning mills in terms of efficiency and quality of yarns produced.
In-market visits also enable ACSA to hear directly from our customers about what’s important to them and how best Australian cotton can support their business and the broader textile industry. This feedback is taken back to Australia where it helps inform research and development priorities, plant breeding programs, grower best management practices, industry initiatives and merchant offerings in the marketplace.
Outcomes from the visits include:
- The Australian cotton industry has acquired many new customers and managed to sell and ship a record crop of 5.7 million bales in 2022.
- ACSA customer directory has doubled in number for our top 7 export market destinations.
- Vietnam, Indonesia, Turkey, Pakistan, Thailand, Malaysia, Korea and Bangladesh now provide a more diverse and stable market portfolio.
- Australia has become the second largest exporter of cotton globally during this time overtaking Brazil.
- Australian cotton has taken market share from the USA and Brazil in many key export market destinations.
- A deepening of relationships with supply chain partners has occurred with in-market visits.
ACSA acknowledges the hard work and dedication of its merchant members who make themselves available for these visits as well as the Australian federal government and AUSTRADE offices who through funding and logistical support help make such events happen.
ACSA will conduct more in-market visits in 2024 both under the EMD and ATMAC programs. We look forward to seeing more of our value customers and supply chain partners.
Until then ACSA stands ready to assist where we can. To continue to bring you the best cotton fibre in the world, competitively priced, grown with the best environmental and human rights practices, contamination free in a delivered by reliable suppliers in a timely manner.
2024 is shaping as another big crop in Australia and quality will be high as always. Talk to your agent or merchant today about securing Australian cotton for your business.
