Cotton planting kicks- off

This season’s cotton production volumes are expected to significantly lift on last year, but more rain is needed in coming months.

Planting under way: Central and southern NSW look to be in a better position this season following early rain flowing into damns, Cotton Australia chief executive Adam Kay says but cotton growing regions in Emerald have been dry.

COTTON planting has begun in central Queensland, and hopes are pinned on a national production turnaround this year.

While central and southern NSW are looking to be in a better position this season following early rain flowing into damns, Cotton Australia chief executive Adam Kay said cotton growing regions in Emerald had been dry.

“But the beauty in that area is that it is in the edge of the tropics, so they have a wide planting window starting on the first of August and that can end in December,” he said.

And if the Bureau of Meteorology forecasts of a wetter-than-average La Nina are correct, Mr Kay said this could be advantageous for growers.

“Overall production is looking better when compared to last year’s small crop, which was the smallest in 40 years, reaching just 600,000 bales, ” he said.

Mr Kay said production forecasts were at about two million bales this season, with the potential for bale numbers to increase to three or four million depending on rainfall over the next few months.

“Things are heading in the right direction and there is optimism in southern and central NSW,” he said. “Northern NSW still has time.”

Meanwhile a Rabobank 10- year outlook report for cotton released this month indicates potential for significant gains in the global export share.

The growing South East Asian market, a strong domestic social licence and untapping the cotton production potential of northern Australia would underpin the export growth, the report found.

Rabobank analyst Charles Clack said with global cotton demand down an estimated 13 per cent year-on-year for 2019- 20, consumption was not likely to fully recover from the impact of the coronavirus pandemic until 2021- 22.

However, Rabobank forecast about a 1 per cent growth in global cotton consumption year-on-year after that time-frame through to 2029-30.

“Our modelling suggests Australia has the opportunity to increase its export volumes to over five million bales through the next decade, if production allows, with South East Asia an attractive market,” Mr Clack said.

To “take full advantage” of growing global demand and meet the 5.3 million bale export opportunity by 2029-30, Mr Clack said Australian production would need to increase.

“We believe this can be achieved through a combination of an on-trend yield rise, – nearing 10 bales per hectare by 2029-30, plus a rise in area towards 540,000 harvested hectares, assuming 90 per cent irrigated,” he said.

While both were achieved during years of high water availability, Mr Clack said the 10-year average was closer to 400,000ha, reflecting the challenge Australian producers faced due to the unpredictability of seasons and water availability.

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