Australian cotton farmers work wonders despite handicaps

Introduction of GM technology and latest water management practices have provided a distinct edge to the Australian cotton economy. M D Dewani reports

Australia expects to harvest a much bigger cotton crop of 522,000 to 547,000 tonnes this season, if one goes by estimates given out by its cotton industry's apex body, Australian Cotton Industry Council (ACIC).

Of course, the Australian Bureau of Agriculture and Resource Economics (ABARE) has placed its estimate somewhat lower at 490,000 tonnes, but that would still be substantially larger than the actual production of 347,000 tonnes in the earlier season, when production was hit by a severe drought.

Australia's cotton farmers, numbering about 1,200 are among the most efficient growers of this natural fibre. They do not receive any price-support, or any other assistance from the government either for growing, ginning or marketing of cotton, other than a contribution for research and development activities. There is active competition among ginners to buy seed cotton and among merchants and shippers to acquire lint. Cotton growers are thus free to choose whom to sell their produce.

Another special feature of the Australian cotton industry is that since the domestic consumption of this natural fibre remains negligible in view of lack of adequate growth of its textile industry, the Australian cotton industry depends on exports of its fibre. Australia exports nearly 95 per cent of its cotton production to countries like Indonesia, Thailand, China, Japan, S Korea Vietnam, etc.

It might be interesting to note that the Australian government is currently conducting a feasibility study whether a free-trade agreement should be negotiated with China. This study is expected to be completed soon. If as a result of this exercise, a free trade pact is concluded with China, Australian cotton growers can hope to export more cotton to China. The Australian cotton industry has over the last eight years progressively introduced Bt cotton. For the purposes of resistance management, the GM component of the cotton crop is being restricted to 30 per cent.

The use of biotechnology has already led to reduction in the consumption of pesticides by 50 per cent over the last five years. Cotton Research Development Corporation (CRDC) which is a partnership between the cotton industry and the government is dedicated to promote research and development in the field of cotton. To collect resources for its activities, cotton growers impose on themselves a levy of A$ 2.27 per bale of 227 kg each. The Australian government matches this levy on a dollar to dollar basis, to be spent on research activities. Since most of the cotton growing areas in the country remain drought affected. Australia remains the second driest continent in the world making it necessary for its people to make a very prudent use of water. In order, to tackle this problem, the Australian government has adopted a national water initiative which for the first time provides a national approval to water management in Australia. A significant feature of this agreement is the separation of the land and water title. Water users have been given perpetual access rights.

One more significant feature of the Australian cotton industry is that its apex body - Australian Cotton Industry Council represents all sectors of the industry - growers, researchers, ginners, shippers as well as suppliers of machinery and other services. As this ACIC provides a united approach to industry issues with a single voice the response to its views from the government is generally quick and positive. That may partly explains the success of the cotton industry in Australia despite problems created by water shortage.