The drought has caused Australia`s cotton production to drop to its lowest level in more than a decade. A small group of cotton growers in the Northern Territory and Western Australia are working with larger growers in the east to create a viable cotton industry locally.
Australia`s cotton industry is facing its toughest prospects in more than a decade, with industry experts saying cotton production across Australia could fall by nearly 75 per cent next season. Total production is expected to drop from about 4 million packs to about 650,000 to 750,000 packs. To this end, cotton growers in WA and the Northern Territory are fully prepared to take advantage of the opportunities arising from the decline in supply.
At least 10 cotton farmers are expected to grow cotton in the Od Valley in Western Australia next year, including large local and cross-state cotton growers. And the area of cotton cultivation in the North Territory will more than triple.
Cotton growers in the Northern Territory and Western Australia are aiming to seize business opportunities to increase cotton production next year at a time of extreme drought in traditional cotton growing areas in New and Queensland.
Cotton growers in other states are also making a steady stream of trips to the Oder Valley and Northern Territory of Western Australia to visit local cotton growing areas for business.
Big companies such as Cubbie Cotton have set their sights on Western Australia negotiating investments with local MG Corporation.
Rob Boshammer, a cotton farmer at Kununurra in Western Australia, said there was hope of seeing big established cotton producers investing locally.
This season, cotton cultivation in the border areas of the Northern Territory will more than triple. About 1,000 hectares of cotton are expected to be planted by six cotton farmers in the Katherine and Douglas-Daly regions.
Industry analyst Pete Johnson said the global supply of high-end cotton would also be tight next year, offering a good opportunity for the expansion of Australia`s northern cotton industry.
"I think the outlook is very good for the growers in the Northern Territory in terms of prices, especially if you can grow quality crops," he said. "
Oder, the Northern Territory and the non-traditional cotton regions of northern Queensland are expected to have the highest-ever production season, producing about 60,000 bales of cotton next year.
