Notes
Slide Show
Outline
1
THE AUSTRALIAN
COTTON INDUSTRY
2
A history of the
Australian Cotton Industry
3
"1788 Cotton seed introduction by..."
  • 1788 Cotton seed introduction by Governor Phillip
  • 1862 Australian crop produced 29 bales
  • American Civil War influenced production until 1871
4
"1921"
  • 1921  Australian Cotton Growing Assoc. (Queensland)
  • 1926  The Cotton Pool Board (Cotton Marketing Board)
5
"1958 Keepit Dam on Namoi..."
  • 1958 Keepit Dam on Namoi River completed
  • 1960 20,000 acres planted to cotton (3,000 irrigated)    All Queensland
6
"1961"
  • 1961 Paul Kahl/Frank Hadley plant cotton at Wee Waa
  •      Western Australian Ord River Irrigation Scheme
  • 1962 Namoi Cotton Cooperative formed
  •      Auscott Pty Ltd formed
7
"1963 Raw Cotton Bounty introduced"
  • 1963 Raw Cotton Bounty introduced
  • 1967 Cotton Seed Distributors (CSD) formed
  • 1971 Raw Cotton Bounty withdrawn
8
"1970’s Cotton established in Gwydir..."
  • 1970’s Cotton established in Gwydir & MacIntyre Valleys
  • 1972 Australian Cotton Research Association    established to administer research in the industry
  • 1973 Cotton abandoned in Western Australia
9
"1979 Colly Cotton Ltd established"
  • 1979 Colly Cotton Ltd established
  • 1984 Dunavant Enterprises begins operations
  • Australian Cotton Shippers Association   (ACSA) established
10
"1987 Volcot Australia incorporated,"
  • 1987 Volcot Australia incorporated, however     had representation in Australia since 1950s
  • Weil Bros commenced trading
  • 1989 CTC begins trading
11
"1989 Cotton market deregulated in..."
  • 1989 Cotton market deregulated in Queensland
  • 1991 Cotton became Australia’s fourth largest     rural export and Australia one of the world’s largest exporters
12
"1996 Walters Cotton"
  • 1996 Walters Cotton Company established
  • 1997 Australian Cotton Industry Council (ACIC)  established
  • 1998 Australian Cotton Shippers
  • Association (ACSA) begins industry export    promotion
  • Goenka & Reinhart start Australian operations



13
1999 Record production at 3.2 million bales

Namoi Cotton Cooperative and CTC merge

2000 Crop forecast to be 3.0 million bales
14
Australian Cotton
Production
15
Australian cotton production
  • Achieved record production of 3.2 million bales in 1998/99 with 534,000ha  harvested


  • Expecting a 3.1 million bale  crop in 1999/2000, with 460,000ha  planted
16
Australian Cotton Production and Area
17
 
18
Australian cotton industry
  • Approximately 1,500 growers
  • Average farm area of 850 hectares
  • Same climatic conditions result in consistent high yield and quality
19
International position
  • Australia is the sixth largest producer
  • 3% of global production
  • World’s third largest exporter
20
Low costs, high yields, efficient water use
  • Production costs per pound are amongst the lowest in the world.
  • Per hectare yields are second highest in the world.
  • 90% of the crop is irrigated cotton.
21
Future production regions
  • Ord River - WA
  • Broome - WA
  • Northern Territory
  • Northern Queensland
  • Central Queensland
22
The Australian cotton industry:
  • A significant industry
  • Expanding production
  • Cost-efficient
  • Sustainable


23
Australian Cotton
Ginning
24
Improving the standard
  • Continuous
  • improvement
  • through:
  • Research
  • Training
  • Innovation and Application
25
Research
  • Maintaining fibre quality from field to mill
  • Nep reduction
  • Highest fibre quality
26
Training
  • On-going training programs
  • Increasing skills
  • Exchanging ideas
  • Introducing new technology
27
Latest technology
  • Best available machinery
  • Uniform product
  • Increased number of gin stands
  • More gin stands per bale produced
  • Maintaining fibre quality through the gin
28
Focus on quality
  • All cotton picked into modules
29
Focus on quality
  • Moisture and trash levels monitored


  • Ginner can make appropriate adjustments
30
Focus on quality
  • Cotton is pressed into uniform bales


  • Bales are bagged for protection


  • Bales are consigned to a warehouse
31
Focus on quality
  • Lowest contamination rate


  • Aim for best condition possible
32
Achieving the highest standards
  • The Australian cotton industry is dedicated to increasing the standard of ginning through the application of research and training.
33
Cotton Shipping and
Transport in Australia
34
Shipping and transportation
  • Undergoing consistent development


  • Reducing delivery time and freight costs


  • Ultimate benefits to buyers


35
Just-in-Time (JIT) Systems
  • Increased number of warehouses
  • More cotton is packed close to port
  • Aim is to reduce spinners’ inventory and working capital requirements
36
Quality control
  • Efficient handling and transportation system


  • Focus on quality control of cotton
37
Transportation
  • Cotton is transported via road in a covered truck or railed in a container
  • Ensures cotton is not exposed to weather conditions
38
Warehouses
  • An increase in smaller warehouses being built
  • Flexibility
  • Aiming to reduce double handling
39
 
40
Australian Raw Cotton Exports
1998/99 Crop
41
"Destination Port"
  • Destination Port Transit Time
  • Far East 18 days
  • South East Asia 18 days
  • Europe 35 days
  • Subcontinent 25 days


42
Competitive ocean freight
  • A marked increase in the competition amongst shipping companies
  • Slot sharing arrangements
  • Direct routes to Asia
  • Consistent supply of containers
43
Summary of major developments
  • Increased warehousing capacity
  • Cotton packing at the wharf
  • Flexible shipping schedules
  • Greater vessel availability
  • JIT delivery system
44
"The Australian cotton shippers’"
  • The Australian cotton shippers’ dedication to improving logistical efficiencies is directly aimed at enhancing relations with our global customers
45
Australian Cotton
Quality
46
Fibre Length
47
Strength
48
Micronaire Measurement
49
Uniformity
50
Quality Improvements
51
Australian Cotton Quality
  • Quality compares favourably with other high grade upland growths
  • Recent advance in biological engineering, driven by research and development
  • Commitment to continuous improvement from all sectors of the industry
  • World leading plant breeders
52
100% Australian bred seed varieties
  • Comprehensive variety statistics
  • Selective seed treatments
  • Grower/Breeder relationship
  • On going research
  • Genetically selected
53
Lint evaluation
  • 75% HVI testing


  • Sold on type:
  • Andy, Aloh, Beut, CBVA, CTC-1, Crane, Dandy


  • Controlled and monitored laboratory conditions
54
Nep Reduction
  • AFIS testing
  • Industry commitment
  • CRDC Research funding
  • Industry funding
55
"COMMITMENT TO QUALITY"
  • COMMITMENT TO QUALITY


  • Whole of industry commitment to improving quality and maintaining Australian cotton’s position as a leading supplier of high quality fibre to the world market.
56
Long Staple Cotton

Australian PIMA
57
Production Areas
  • Bourke was the first area in Australia to produce long staple cotton.


  • Tandou is now the predominant PIMA producer.



58
Australian Pima Production
59
Factors influencing production
  • Roller gin locations
  • Weather risk in traditional areas
  • Contamination from Upland cotton
  • Water availability
  • Prices and Yields
60
Ginning Capacity
  • North Bourke Gin
  • Clyde Agriculture at Bourke
  • Tandou
61
Quality Issues
  • Tight controls over quality
  • All Pima is presented in cotton bagging
  • Low contamination levels


62
Quality Issues
  • No white fly in Australian Pima
  • Consistent quality
  • All care taken to eliminate contamination
63
Pima Characteristics - 1999 crop
  • Length - 1.37 or 1-1/2 inch
  • Micronaire - 3.94
  • Strength - 38.37 grams/tex
  • Uniformity - 86.95%
  • Graded Pima 1 and 2
64
Destination Markets for Australian Pima
65
Australian Cotton & the Environment
66
Environmental Issues
  • Greater restrictions on chemical usage
  • Limited access to irrigation water
  • Greater prices for existing allocations
  • Community concerns about environmental impacts
67
Environmental Issues (cont.)
  • Increased collaboration with environmental movement
  • International market pressures to demonstrate sustainability
68
Environmental Objectives
  • Reduce environmental & community impacts
  • Develop Industry Code of Sustainable Practice
  • Gain recognition from key environmental groups
  • Establish methods to measure performance over time
  • Capitalise on “clean green” market image
69
Current Actions
  • BMP Program & ‘Good Neighbours’ campaign
  • Benchmarking & improving on-farm water use efficiency eg. Computerised irrigation scheduling techniques
  • Improved land & water management practices
  • Keeping up to date with new and emerging technologies by adoption of research
70
BMP 1999
  • 1999 - 60% trained
    2000 - 80% trained
  • 2001 - 100% trained &
    auditable
  • More than 1000 people
    were introduced
    to BMP in 1999
  • ‘Good neighbours’ program to raise awareness of BMP & motivate growers to adopt BMP
71
Our Goals
  • Greater connection between environmental performance & business value
  • Develop Sustainable Cotton brand
  • Establish Code of Sustainable Practice
  • Secure “social” licence to operate
  • Achieve higher levels of performance & new markets
72
 
73