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SYDNEY - Australia's 2008 cotton crop will be sharply reduced by drought, Namoi Cotton Co-operative says.
"The 2008 crop will be severely impacted by the ongoing drought conditions and reduced water allocation entitlements," a statement from the grower co-operative to the Australian Stock Exchange said yesterday.
The majority of cotton growing regions had received limited rainfall in the past six months and major dams were approaching record low levels, Namoi said.
"Whilst planting intentions will not be finalised until November, industry forecasts indicate that the 2008 crop will be substantially smaller than the 2007 crop."
Australia is gripped by its worst drought in 100 years. The drought first struck in 2002, and has returned in recent months.
A Government unit, the Australian Bureau of Agricultural and Resource Economics, in September forecast that Australia's cotton lint production in 2007/08 would fall to 104,000 tonnes, from 274,000 tonnes the year before, which was also hit badly by drought.
A spokeswoman for Cotton Australia said yesterday Australia was headed for its smallest cotton crop in 30 years, with only a tiny amount planted because of the drought, which has hit irrigated crops hardest. The summer crop was normally planted in September and October, but only small areas had been planted this year because of lack of water.
- Reuters
