NT cotton industry push grows with backing from new report

THE case for building the NT’s first cotton gin is gathering strength with a PricewaterhouseCoopers report finding that securing funding from the NT Government’s Local Jobs Fund will underpin the viability of the project.

The NT cotton industry could take off with a report backing building a cotton gin.

THE case for building the NT’s first cotton gin is gathering strength with a PricewaterhouseCoopers report finding that securing funding from the NT Government’s Local Jobs Fund will underpin the viability of the project.

The report says the grant funding, coupled with Queensland Cotton’s proposed contribution, will give financiers the confidence that the gap between feasibility and bankability will be closed.

Commissioned by the NT Farmers Association (NTFA) and funded by the NT Government, the report reinforces Katherine as the best location for the gin and says about 400,000 bales of cotton could be produced in the Territory over the next 10 years.

It suggests that a sustainable cotton industry in the Territory has the potential to contribute $15 million in the construction phase, building up to $200 million.

NT Farmers chief executive officer Paul Burke said to achieve this scale of production, processing facilities needed to be close to production sites, which would be achievable with the establishment of a cotton processing facility being considered as part of the Northern Territory government’s Katherine Agricultural Precinct.

“Maturing of the agriculture sector in the Katherine region will bring significant long-term opportunities and outcomes,” Mr Burke said.

“Cotton is a profitable and sustainable natural product and has the potential to become a reliable cornerstone crop for the Territory’s cropping industry

“The biggest barrier to developing a successful cotton industry in the Territory is the freight costs for processing cotton interstate, as well as biosecurity constraints.”

A cotton gin with bales of cotton, near Cubbie station in Queensland. Picture: Lyndon Mechielsen

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Cotton research and cultivation has a long history in the NT, starting in 1904.

There have been numerous studies to grow cotton on a commercial basis, including a period of intensive research in Katherine between 1993 and 2006.

In 2018, the Department of Primary Industry and Resources recommenced research at the Katherine Research Station to enhance understanding of disease and pest resistance, yield and fibre quality to support industry viability assessments.

About 1000ha of cotton is growing well in trial sites across the NT on five properties in Douglas Daly, Katherine and at Tipperary.

“Within a decade the industry could be worth at least $200 million and directly employ over 250 workers,” said Mr Burke.

The Territory’s strong seasonal rainfall patterns and high temperatures makes tropical “dryland” cropping in Northern Australia very different to southeastern Australia, where cotton is traditionally sown during the cooler spring months.

Mr Burke said that contrary to cotton’s reputation as a thirsty crop, Australia’s cotton industry is one of the most water efficient industries in the world, and the water requirement for cotton is considered middle of the range in agricultural crops.

“Around 80 per cent of a future NT cotton industry is estimated to be rain-fed farming systems, also known as dryland farming,” he said.

“The remaining 20 per cent is likely to be supplemented with irrigation due to the variable nature of rainfall.”