Leslie Massey
Australia is one of the world's largest exporters of raw cotton, with more than 90% of production exported, mainly to Asian markets. The cotton industry in Australia has a reputation for being water-intensive, which has led to concerns about water usage and the lifting of an embargo on flood plain harvesting. Despite this, cotton is a water-efficient desert plant that suits Australia's climate and is only grown when sufficient water is available. Cotton growers in Australia have improved water-use productivity by 40% in the decade to 2012, and water-use efficiency has increased by 240% since the 1970s. This guide will explore the steps and considerations for growing cotton in Australia, including water conservation techniques, biosecurity restrictions, and marketing strategies.
| Characteristics | Values |
|---|---|
| Climate | Suits Australia's climate |
| Crop type | Annual crop |
| Water | Water-efficient; only grown when sufficient water is available |
| Water-use efficiency | Increased by 240% since the 1970s |
| Water-use productivity | Improved by 40% in the decade to 2012 |
| Growing season | Approximately 6 months, starting in September/October (planting) and ending in March/April (picking) |
| Regions | Inland regions of northern New South Wales and southern Queensland |
| Production areas in NSW | Stretches south from the Macintyre River on the Queensland border and covers the Gwydir, Namoi and Macquarie valleys; also grown along the Barwon and Darling rivers in the west and the Lachlan and Murrumbidgee rivers in the south |
| Production areas in Queensland | Mostly in the south in the Darling Downs, St George, Dirranbandi and Macintyre Valley regions; the remainder is grown near Emerald, Theodore and Biloela in Central Queensland |
| Trade | Australia is one of the world's largest exporters of raw cotton, with more than 90% of production exported, mainly to Asian markets |
| Marketing | Cotton has unique marketing parameters based on fibre quality; a number of pricing alternatives are available to growers |
| Crop inputs | Seed, fertiliser, herbicides, insecticides, growth regulators, defoliants and a licence to grow GM cotton Technology User Agreement (TUA) |
| Best practice | The Australian cotton industry uses the myBMP (best management practice) system to demonstrate improved farming practices and careful management of natural resources |
| Spray drift | An important consideration for on-field and off-field impacts; chemical drift should be minimised and a Pesticide Application Management Plan (PAMP) should be developed |
| Biosecurity restrictions | Key pests, weeds and diseases vary between Northern and Southern Australia, so biosecurity practices that limit the movement of these organisms between regions are critical |
| Transgenic cotton | Specific industry and government regulations apply to the production of transgenic cotton in Australia and vary between regions |
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What You'll Learn
Water efficiency and conservation techniques
Cotton is a desert plant that is water-efficient and well-suited to Australia's climate. It is a valuable cash crop that is only grown when sufficient water is available. Water-use efficiency in Australia has increased by approximately 240% since the 1970s, and Australian cotton growers are recognised as the most water-efficient producers in the world.
- Water availability is a limiting factor in cotton production, so it is essential to only grow cotton when there is enough water. This decision-making is crucial in water conservation.
- The use of sprinkler irrigation can help conserve water. This method allows for more precise water application and can be adapted to suit the specific needs of the crop during periods of drought or water scarcity.
- Cover crops can be used alongside sprinkler irrigation to maintain ground cover, improve soil health, and increase soil carbon, which can lead to bigger crops.
- Zero tillage practices can also increase soil carbon and improve water infiltration, reducing water usage.
- The Australian cotton industry utilises the myBMP (best management practice) system to demonstrate improved farming practices and careful management of natural resources. Adopting these practices can help optimise water usage and minimise waste.
- In tropical environments, understanding the challenges of the wet season and making informed decisions about irrigated or dryland cotton are essential. Proper planning and consideration of sowing times can significantly impact water conservation.
- Ginning arrangements should be made before planting cotton to ensure compliance with biosecurity restrictions, especially in Northern Territory, Western Australia, and Central Queensland.
- Water efficiency is not just about on-farm practices but also about community engagement and education. Cotton growers should aim to address community concerns about water usage and explain their water allocation practices.
- Some growers are investing in renewable energy projects, such as solar farms, to reduce their electricity consumption and carbon footprint. While this may not directly impact water efficiency, it contributes to a more sustainable and environmentally conscious industry.
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Cotton growing regions
Cotton is a desert plant that is water-efficient and well-suited to Australia's climate. The two biggest cotton-growing regions in the country are northwest New South Wales and southern Queensland. Together, these two states account for nearly all of Australia's cotton businesses.
Cotton production in Australia is subject to significant annual volatility due to water availability and erratic weather, which influence acreage, participation, and revenue. Water scarcity forces farmers to reduce cotton cultivation and shift to more lucrative crops suited to prevailing conditions. For example, the national cotton crop in 2020 was small—about 600,000 bales, well short of the 3 million bale average. This was due to dry conditions in southern Queensland and northern New South Wales, which adversely affected the planted area.
However, abundant rainfall in the Murray-Darling Basin during 2021-22 boosted water availability and revenue for cotton growers. Overall, industry revenue has grown at a CAGR of 55.0 % over the past five years, reaching an estimated $2.8 billion in 2024.
Cotton growers in Australia must also consider the unique challenges of growing cotton in a tropical environment, such as understanding the wet season and making decisions regarding irrigated or dryland cotton, sowing times, and water conservation techniques. Additionally, local communication about pesticide application and biosecurity restrictions are critical to minimizing chemical drift and preventing the spread of pests, weeds, and diseases between Northern and Southern Australia. Government regulations for transgenic cotton production also vary between regions.
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Farm inputs
Cotton is a desert plant that is water-efficient and well-suited to Australia's climate. It is a valuable cash crop and is grown as an annual crop in Australia, typically from September/October to March/April. The major cotton-producing areas in Australia are in the inland regions of northern New South Wales and southern Queensland.
When growing cotton in Australia, there are several farm inputs to consider. Firstly, you will need to source suppliers for seeds, fertilisers, herbicides, insecticides, growth regulators, and defoliants. It is also important to obtain a licence to grow GM cotton, which requires a Technology User Agreement (TUA).
To ensure the successful growth of cotton, it is essential to understand the challenges posed by the wet season and make informed decisions about irrigated or dryland cotton. This includes determining the corresponding sowing times and implementing effective water conservation techniques.
Another crucial aspect is spray drift management, both onto and off the cotton crop. It is the responsibility of the farmer to minimise chemical drift and ensure it does not extend beyond their property boundaries. Developing a Pesticide Application Management Plan (PAMP) is recommended, and open communication with neighbours about growing cotton can help address any concerns they may have.
Additionally, biosecurity practices are critical to limiting the movement of key pests, weeds, and diseases that may occur in Northern or Southern Australia. Transgenic cotton production is subject to specific industry and government regulations that vary across regions, so consultation with the relevant Bayer representative is necessary to comply with these requirements.
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Pesticide application
To effectively manage pesticide application, it is recommended to develop a Pesticide Application Management Plan (PAMP). This involves discussing your plans to grow cotton with your neighbours to address any concerns or challenges they may have. Additionally, biosecurity practices are critical to limiting the movement of pests, weeds, and diseases between Northern and Southern Australia. These practices help prevent the spread of organisms specific to each region.
When growing cotton in a tropical environment, such as Northern Australia, there are unique challenges and decisions to be made regarding irrigated or dryland cotton. The corresponding sowing times and water conservation techniques will differ. It is important to have arrangements for ginning in place before planting cotton, as biosecurity restrictions may apply.
By following best management practices (myBMP), the Australian cotton industry can demonstrate its commitment to improved farming practices and the careful management of natural resources. This includes considerations for water quality, local fauna, and natural vegetation when expanding cotton production into new areas.
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Marketing and pricing
Australian cotton growers are known for their business acumen and understanding of the factors that influence the price of their product. They closely monitor price movements and take advantage of opportunities, such as the forward market, which allows them to sell their cotton at a fixed price up to three years in advance. The price that growers receive for each bale of cotton is determined by the global market and can fluctuate based on various factors, including the state of the global economy, agricultural policies, fashion trends, synthetic fibre prices, weather events, natural disasters, and supply and demand dynamics.
To enhance their marketing efforts, Australian cotton growers and industry organisations like Cotton Australia emphasise their commitment to ethical and sustainable practices. They promote their water efficiency, with claims of being the most water-efficient cotton producer globally, and address concerns about water usage. Growers are also working on initiatives to reduce emissions and store carbon in the soil, such as investing in solar farms to reduce electricity consumption. These efforts align with the values of organisations that prioritise reducing their environmental footprint and ethical treatment of workers.
The average price of cotton between 2013/14 and 2017/18 was approximately $529 per bale, with prices spiking in 2011 due to a short-term shortage. Over this five-year period, the Australian cotton crop was valued at AUD $2 billion annually, underpinning the viability of 152 rural communities. Australia exports cotton seed to Japan, Korea, China, and the USA, contributing to the overall revenue generated by the industry. With efficient water management, sustainable practices, and a focus on meeting global demands, the Australian cotton industry continues to position itself competitively in the global market.
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Frequently asked questions
Cotton is grown in the inland regions of northern New South Wales and southern Queensland.
The growing season lasts approximately six months, starting in September/October (planting) and ending in March/April (picking).
Some key considerations include water availability and efficiency, understanding the challenges of growing cotton in the wet season, local communication and spray drift, biosecurity restrictions, and crop inputs such as seeds, fertilisers, and insecticides.
The cotton industry in Australia has faced a poor public image due to concerns over water usage, particularly in regions experiencing climate change extremes such as record temperatures and reduced rainfall. However, the industry defends itself by highlighting its water efficiency improvements and the valuable cash crop's contribution to the economy.
