August 15, 2003

Investment in research and development has driven the phenomenal growth of the cotton industry over the past decade, the Parliamentary Secretary for Agriculture, Fisheries and Forestry, Senator Judith Troeth, said.

Senator Troeth launched the Cotton R&D Corporation's (CRDC) 2003-08 strategic plan, and the second environmental audit at a gathering of industry leaders in Canberra.

"Cotton is now Australia's third most valuable export crop behind wheat and sugar, with much of the industry's success underpinned by its well-targeted research and development program," she said.

"All cotton growers are to be congratulated for the commitment in ensuring the long term prosperity and sustainability of their industry, not only through R&D, but through a significant uptake of more environmentally friendly farming practices.

Senator Troeth said cotton has had to grapple with the "big issues" of water, pesticides and genetically modified organisms during the past decade, issues at the heart of the current environmental debate.

The latest environmental audit -- a follow up to a 1991 audit -- demonstrates the industry's success in better water, land management and pesticide use.

Among the key findings:

• improved water use through more efficient application and use of available water;
• improved pest management and reduced pesticide use, largely because of the use of GM cotton and integrated pest management strategies;
• improved spray application methods that reduce the quantity of pesticide missing the target;
• improved land management that has helped reduce soil erosion, soil compaction and salinity.

"The results of the latest audit are very positive," Senator Troeth said. "Underpinning the result is the industry's commitment to its Best Management Practices (BMP) program. BMP is a voluntary, risk assessment program that helps producers document what they need to do, to achieve best practice for their farm and environmental management.

Almost 55% of cotton growers used the BMP approach to produce the 2002-03 crop, and new funding over the next three years through the National Environment Management Systems pilot program should expand the BMP program.

BMP will be extended to cover other key natural resource management issues, such as salinity, biodiversity, vegetation, water quality and water-use efficiency, to give cotton growers a framework to identify and manage environmental risks and improve land and water management.

One of the cotton industry’s greatest successes is the plant breeding program which has produced high-yielding, top-quality cotton plant varieties.

Since 1987-88, the gross value of production of cotton in Australia has more than tripled, while the value of exports has increased from $350 million to $1.7 billion (source Australian Bureau of Agricultural Resource Economics (ABARE)), or more than $1 million of production for each of the estimated 1500 Australian growers. The number of 227kg bales produced has increased from about 1.2 million bales to more than 3.2 million. And the area of production has been generally increasing, with a dramatic rise in the last five years .

Between 85 and 90% of the area of cotton planted in Australia is sown to varieties bred by the CSIRO, with funding support of $8 million from the Cotton Research and Development Corporation since 1990. These varieties give Australian growers yields among the highest in the world, while retaining fibre quality.

The benefits of a research program which has allowed the industry to expand its production base are visible wherever cotton is grown. Country towns in cotton areas, such as Dirranbandi, Emerald, Bourke, Trangie and Wee Waa, offer many more employment and business opportunities than towns in other areas where rural life is in decline.

Cotton, a more intensive agricultural industry than cattle or broadacre grains, involves skilled and unskilled workers on-farm as well as supporting a number of direct and in-direct service industries, from machinery and equipment suppliers, through to supermarkets and entertainment venues. Thus the flow-on effects of cotton production reach far into the overall economic structure of rural communities.

Environmental strategy makes good economic sense

Focussing on the bottom line may not be the best economic strategy when it comes to controlling insect pests in cotton crops.

Recent balance sheet analyses of the range of pest management strategies, from those emphasising cost and efficacy to systems which encourage the activity of beneficial insects, have shown that a softer approach to chemical usage can make a big difference to gross margins.

Under a softer, Integrated Pest Management strategy, selective insecticides are the preferred option for pest control with the ‘harder’ broad-spectrum chemicals used as a last resort and as late in the growing season as possible – if at all.

A preliminary analysis conducted by researchers at the Australian Cotton CRC showed spray costs were up to 20 per cent lower under a ‘soft-option’ management program. Although the chemicals used were generally more expensive, the increased number of applications under ‘hard’ systems had a greater influence on total costs.

The project gathered farm-level data relating to two seasons from a set of neighbouring cotton properties in northern New South Wales. The numbers and types of sprays used in each field was recorded. Every insecticide application was given a ranked score to quantify the likely impact on beneficial insects, with fields in the study given a total weighted score based on the pest control regime for the season. This analysis demonstrated that as more sprays were applied, gross margins decreased – by hundreds of dollars per hectare.

Similar studies being conducted in other cotton valleys are showing similar results, with fields showing the highest gross margins generally having lower insect control costs. The relationship between yield and insect control costs was not statistically significant, meaning an expensive spray programs does not necessarily increase yield.

Integrated Pest Management strategies are the result of an extended and comprehensive research and development program. The principles have been developed for the industry because of environmental and sustainability benefits. The systems tend to have fewer applications of more specialised chemicals which means the risks of negative impacts on neighbouring properties and environments are greatly reduced. Reducing the number of spray applications also lowers the risk of pests developing resistance to insecticides, in turn reducing the need for stronger chemical formulations.

These economic findings should provide further encouragement for the adoption of Integrated Pest Management systems even though they can be harder to manage and have more uncertainty for growers and crop consultants.

Environmental ‘Best Management Practice’ a world first

The cotton industry’s Best Management Practice (BMP) Program is a world first, demonstrating to governments, the general community and international buyers that Australian cotton is produced in an environmentally-aware and sustainable manner.

Since the launch of the first edition BMP Manual two years ago the Cotton Research and Development Corporation has allocated more than $1.5 million to the on-going development of the program and its extension to industry. A revised, updated and improved edition of the Manual was released to the industry last month.

BMP is believed to be a world first because it introduces environmental management systems across the entire production base of the industry. It provides growers with practical and flexible guidelines to ensure on-farm activities are not having adverse impacts on neighbours or the environment.

An audit program which is nearing completion will give the industry a feedback mechanism and the ability to demonstrate its environmental care and commitment to the community and government.

The Best Management Practices program was developed in response to a 5-year, $6 million joint CRDC, Land and Water Resources RDC and Murray-Darling Basin Commission project ‘Minimising the impact of pesticides on the riverine environment’.

Almost 100 per cent of growers have now attended introductory training workshops on how to use the BMP Manual to develop and apply strategies on-farm, and approximately 30 per cent of growers are ready to be audited.

Award winning software gains wide industry acceptance

Since its launch in 1998, more than 1000 growers and farm consultants have requested copies of CottonLOGIC, award-winning pest management software available free to people within the Australian industry.

CottonLOGIC encourages objective and regular checking of crops and the use of thresholds in decision-making. By using CSIRO models, users can predict insect pressures and potential yield losses which can assist them in making pesticide decisions. This can often lead to a reduction in the number of pesticide applications used throughout the season. Models that relate the crop yield to nitrogen fertility have also been included to help growers with their fertiliser management.

Farm operations and spray orders can also be recorded into CottonLOGIC, helping growers improve their business practices.

The Cotton Research and Development Corporation has supported the development of this CSIRO software with a direct injection of $900,000 during the last 10 years and has indirectly assisted by providing funding for related infrastructure and research projects.

User feedback has helped influence the direction of CottonLOGIC which is fast becoming a tool to assist growers achieve Best Management Practice. It has also been recognised as an important education tool for the industry.

A version of the software for hand-held PalmTM computers is currently in the final testing stages, will allow data to be entered and processed in the field so decisions can be made quickly and easily on-site.