Queensland Cotton Corporate History
As Australia's oldest cotton ginning and marketing organisation, Queensland Cotton has played a major role in securing Australia's reputation as a leading producer of quality cotton. Today Queensland Cotton is ranked as one of the top 10 cotton companies in the world with extensive operations throughout Australia, Brazil and the United States. It employs approximately 300 permanent staff which are supplemented by more than 500 additional employees during the cotton ginning season.
Established in 1921, Queensland Cotton has its origins in the Australian Cotton Growing Association Limited, the British Australian Cotton Association and the Cotton Marketing Board.
Queensland Cotton Holdings Limited was incorporated in May 1989 following deregulation of the Australian cotton industry and listed on the Australian Stock Exchange in 1992.
In 2007, Olam Australia Pty Ltd secured control of Queensland Cotton, following which Queensland Cotton Holdings Limited was de-listed from the Australian Stock Exchange.
QC Background
1921 Established as Australian Cotton Growing Association Limited
1989 Corporatised
1992 Publicly listed
1995 Expanded into NSW
1997 Acquired operations in the USA
2003 Started trading Brazilian cotton; Mt Tyson Seeds acquisition
2005 Started trading Texas cotton
2006 Acquired 3 additional gins in NSW (from Twynam Group)
2007 Purchased by Olam
2007 Upon Olam securing control, Queensland Cotton was de-listed from ASX
Australia's Cotton Industry
Cotton seed was brought from England to Australia with the First Fleet in 1788. It was introduced to Queensland in 1840 during the agricultural settlement of the State and for many years was the principal agricultural crop produced.
During the American Civil War, shipments of USA cotton were disrupted and cotton prices soared. This spurred plantings and Australia's cotton output increased until 1871 when production reached 5,204 bales. After that period, poor prices and irregular rainfall drastically reduced the industry and production continued on a small scale.
Between 1880 and 1913, the industry almost disappeared as Queensland's entire production of raw cotton was exported to Great Britain. Low prices, transport costs and transport time delays also limited the growth of the industry.
The industry regenerated in the early 1920's when rising world prices attracted major investment to Australia, substantially increasing the amount of land under cotton production.
To manage the growing, ginning and marketing of cotton, Queensland Cotton Holdings' forerunner, the Australian Cotton Growing Association Limited was established in 1921.
The cotton industry has continued to expand culminating into today's dynamic and innovative industry.
United States Cotton Industry
Spaniards raised the first cotton crop in North America, in Florida, around 1556, although it is believed that cotton was grown by Native Americans much earlier than that. Virginia colonists raised cotton from seed imported from the West Indies in the 1600s.
It was, however, the invention of the cotton gin in 1793 by Eli Whitney - an unemployed teacher from Massachusetts - that reshaped the economic and social history of the United States. Cotton cultivation by slave
labour and the economy it fostered contributed to the war between the states. Following the Civil War, the cotton belt of the Southern Gulf States pushed westward into California.
Today the leading cotton states are Texas, California, Mississippi, Arizona, and Louisiana. The United States is the world's second largest cotton producer and the third largest manufacturer of cotton goods.
Brazil's Cotton Industry
Brazil is now the fifth largest cotton producing country in the world. This is due to significant new growing areas being opened up in the principal exporting states. Until the last decade domestic cotton consumption accounted for all the cotton produced in Brazil. However with the introduction of new varieties, cotton exports now play a vital role in the development of the Brazilian industry.
Brazilian export quality cotton is largely produced without irrigation and is blessed with adequate rainfall during the growing period and then harvested during the dry peroid.
Growers utilise all of the high technology available to them and are very adaptable to the ever changing international cotton market.
