Patchy pattern for Australian cotton growers

The Australian cotton industry is celebrating a season of record yields in the south where water is plentiful, but drought conditions further north are presenting a challenge in traditional cotton-growing areas.

As the cotton harvest nears an end, producers in the New South Wales Riverina region are happy with the outcome.

James Hill, a farm operations manager on a property near the small town of Whitton, says the cotton yield has been particularly good this year.

"It's been a sensational season. Last year, our yields were a lot lower, and, this year, they're the highest we've ever had, and it's all to do with the season.
“What's really driving this increase in cotton production is its return per megalitre. So, against other irrigated alternatives, farmers are getting a better return out of cotton."
“Last year, we had a lot of heatwaves, which can adversely affect the cotton, whereas, this year, it's just been a nice, even season and we haven't had any real weather issues."

Dozens of trucks move across the region, delivering the season's pickings to local gins -- where the first stage of processing takes place.

It is a busy scene, but cotton was rarely grown in the region until just a few years ago.

The general manager of Southern Cotton, Kate O'Callaghan, says farmers are following the money.

"In 2011, there were only 18,000 hectares grown in the valley. This year, there's 36,000, and, next year, it's looking like 50,000.

“What's really driving this increase in cotton production is its return per megalitre. So, against other irrigated alternatives, farmers are getting a better return out of cotton."

But while there might be good returns in the south, growers further north are not having the same success.

For growers in southeast Queensland and northern New South Wales, dry conditions have taken a toll.

And that is affecting the national cotton industry, as Cotton Australia's Adam Kay explains.

"This season, we're producing a national crop of around 2.2 million bales, so that will be valued at about $1.25 billion.

“That's down on the $2 billion crop we grew last year -- it was about four million bales -- and that's really due to that water shortage in those areas."

In the Riverina, water is more readily available, letting cotton become a growing industry.

Two new gins are being built, and more broadacre farmers are looking to add it to their rotation.
"At this point in time, cotton prices are probably traditionally higher than what they've been, so we'll probably jump on board, ride the price and then, when it falls away again, maybe switch into something else."
Luke Mancini is one of them.

"At this point in time, cotton prices are probably traditionally higher than what they've been, so we'll probably jump on board, ride the price and then, when it falls away again, maybe switch into something else."

These recent years are not the first time cotton has been grown in the region.

Many early growers gave up, though, battling widespread damage from the heliothis moth.

That problem has been mitigated by a new kind of genetically modified crop, more resilient to the pest.

It also means growers need to apply less pesticide.

Global demand remains strong, with 95 per cent of Australian-grown cotton destined for export.


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3 min read

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By Rhiannon Elston
Source: SBS

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