The Australian cotton industry has been able to remain competitive in a global commodity market due to a number of factors, including: its ability to produce high quality cotton, grow world-leading yields, maintain low levels of contamination, and provide reliable shipments. Increasingly these advantages are being eroded, as competing growths improve their yield and quality, and pay more attention to managing contamination. Furthermore, the introduction of transgenic cotton varieties, and the increased speed with which technology can be adapted and adopted has lead to improved yields world-wide. It is likely that Australia's competitive advantages will not be as large, nor last as long as they used to. To maintain its place as a preferred supplier, the Australian cotton industry needs to continually improve on its performance in the areas noted above, and ideally, further differentiate its product so that it remains the product of choice in a discerning market.