World cotton production for 2000/2001 cotton year (I'' August - 3 1'' July) is expected to be around 87-88 million bales. World consumption is expected to be around 90 million bales. Two thirds or around 60 million bales of the global crop will not be exported, but consumed by the producing country. This puts world trade (country to country movements of raw cotton) at around 27 million bales annually. Why is this such a vital statistic for AustraliaΓ Because Australia this year will have to export 94% of its total raw cotton production. Australian domestic consumption of raw cotton remains below 200,000 bales per annum, so with no large domestic market and no Government subsidy schemes, every additional bale produced by Australian farmers has to find a home in another country. With no protective price buffer and no economical way of carrying stock every bale has to be sold under very competitive quality and price scenarios and without the subsidies many of our competitors are receiving in one form or another. To further break down the export trade of raw cotton into broad quality groups, we start to gain an appreciation of where Australian cotton fits in the global market.