100 43 500 % 75

More than 100 countries produce cotton globally

There are 43 species of cotton in the world

In an average year, Australia’s cotton growers produce enough cotton to clothe 500 million people

American ‘paper’ money is a blend of 75% cotton and 25% linen

INTERESTING COTTON FACTS The word ‘cotton’ is derived from ‘qutun’ or ‘kutun’, an Arabic word used to describe any fine textile In an average year, Australia’s cotton growers produce enough cotton to clothe 500 million people Cotton is produced in more than 100 countries in the world, but six of them – China, India, Pakistan, USA, Brazil and Uzbekistan – contribute about 80% of production Cotton and its by-products are used in the production of a huge range of products including bank notes, margarine, rubber and medical supplies There are 43 species of cotton in the world and some cotton grows on trees Australia and Egypt produce the highest quality cottons in the world The fibre from one 227kg cotton bale can produce 215 pairs of jeans, 250 single bed sheets, 1,200 t-shirts, 2,100 pairs of boxer shorts, 3,000 nappies, 4,300 pairs of socks or 680,000 cotton balls Cotton can absorb up to 27 times its own weight in water The cotton plant requires about 180 – 200 days from planting to full maturity ready for harvest Cotton is a unique crop in that it is both a food and a fibre China is the world’s largest cotton importer and is also the biggest producer Chambray is a type of cotton popularly used in the manufacture of blue work shirts, and is where we get the term “blue-collar” © Cotton Australia 2016. This material is licensed under a Creative Commons Attribution-Non Commercial 4.0 International License (CC BY CC BY-NC 4)

INTERESTING COTTON FACTS

Cotton dates from at least 7,000 years ago making it one of the world’s oldest known fibres Archaeologists found 5,000 year old cotton fabric at Mohenjo Daro, an ancient town in the Indus River Valley of West Pakistan Ancient Greek and Roman civilisations used cotton for awnings and sails as well as clothing The Aztec civilisation used naturally coloured brown cotton as a principal form of payment Denim fabric was initially produced in Nimes, France and denim derives its name from ‘serge de Nimes’ (‘fabric of Nimes’) In the 16th Century, sailors from the Italian port city, Genoa, began to wear denim Naturally coloured cotton varieties in South America have come in shades of red, yellow, beige, chocolate, pink, purple, green, striped like a tiger and even spotted like a leopard Ancient Peruvians made fishing nets and lines from darker shades of cotton to be less visible to fish The first light bulb manufactured by Thomas Edison in the late 1800s used a cotton thread filament American ‘paper’ money is a blend of 75% cotton and 25% linen

227 % 50 % 40 % 10

An Australian cotton bale weighs 227kg

Cottonseed represents approximately 50% of ginned cotton’s weight

Cotton fibre represents 40% of ginned cotton’s weight

Trash represents the remaining 10% of ginned cotton’s weight and is made up of mostly leaves and sticks

PROCESSING, EXPORTING AND MARKETING Processing On the farm, mechanically harvested cotton is pressed into large round modules or large rectangular, truck-sized blocks The modules are then transported to a cotton gin (short for engin) for the first stage of processing Cotton gins are factories that separate cottonseed and trash from the lint (raw cotton fibre) Australia’s cotton gins are located in regional areas where the cotton is grown to reduce transport costs Ginning is done in a series of stages using large, fast moving mechanical saws that “strip” the cotton lint from the seeds and blowers to remove as much trash as possible The white fluffy lint is then pressed into cotton bales using a bale press, and covered with bale covers made from a cotton knit fabric to minimise contamination A cotton gin can produce 60-100 cotton bales an hour An Australian cotton bale weighs 227kg (500 pounds) Cottonseed represents approximately 50% of ginned cotton’s weight Cotton fibre represents 40% of ginned cotton’s weight Trash represents the remaining 10% of ginned cotton’s weight and is made up of mostly leaves and sticks The trash is sometimes used in products that clean up oil spills and also in ethanol manufacturing

IMAGE: CHLOE BLATCHFORD

PROCESSING, EXPORTING AND MARKETING

Classing Following the ginning process, samples of cotton are collected from each bale for classing

Most of the Australian cotton crop is spun and woven overseas

Promotion

Cotton classing sorts the fibre into different quality based grades. The better the fibre quality, the higher the grade and the more the grower is paid for the cotton

Cotton Australia’s ‘Cotton to Market’ program was established to create confidence to use cotton in the textile supply chain, position Australian cotton in a future that demands responsiblyproduced cotton and create value for Australia’s cotton growers

There are many factors in cotton classing that determine the grade including colour, staple length, fibre strength, micronaire, neps (or knottiness), stickiness and trash content

Cotton Australia promotes Australian cotton through three main programs:

Marketing Australia enjoys an open, sophisticated and highly competitive marketing system whereby growers forward sell their crops directly to independent marketing companies The Australian Cotton Shippers Association (ACSA) represents these companies and keeps an update-to-date list of their members at www.austcottonshippers.com.au These companies then “on sell” the cotton into overseas markets, and pay the grower

Exporting Once the cotton bales are ginned, pressed and containerised, they are loaded on to trucks and trains and sent to port for shipping, mostly to overseas markets The main ports for Australian cotton are in Brisbane and Sydney, with some cotton shipped from Melbourne

- Cotton LEADS™ is a program that is committed to responsible cotton production and is founded on core principles that are consistent with sustainability, the use of best practices and traceability in the supply chain. This joint program, initiated by the Australia and the US cotton industries, offers manufacturers, brands and retailers a reliable cotton supply chain and confidence that their raw material is responsibly produced and identified - The Better Cotton Initiative (BCI) operates as a not-for-profit organisation. BCI brings together farmers, ginners, traders, spinners, retailers, brands and grassroots organisations in a unique global community committed to developing Better Cotton as a sustainable mainstream commodity. - Australian Cotton Story: direct engagement helps share our story with Australian and international brands, retailers, manufacturers and designers

The cotton bales are warehoused, and once they’re sold and ready to be shipped are loaded into large shipping containers

Internationally, there are a number of additional cotton promotion programs, each one contributing to the global effort to position cotton as a fibre of choice in the world textile market:

The main customers for Australian cotton are spinning mills located in south east Asia – China is Australia’s largest buyer of cotton

- Cotton Made in Africa is run by the Aid by Trade Foundation, and follows an innovative approach in development cooperation and ‘social business’ principles.

Spinning and weaving

- Fairtrade Cotton is about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. Fairtrade provides a certification system and product labels (FAIRTRADE Mark) to connect consumers and producers.

When the cotton bales arrive at the spinning mills, they are first opened and checked for contamination Bales of cotton are put into a blower to separate all the fibres, and are then combed, carded and spun into yarn This yarn is then woven or knitted into fabric Dyeing can occur at either yarn or fabric stage, and more rarely the cotton fibre itself can be dyed (to make melange fabrics) This fabric can then be sewn into all sorts of cotton products including clothing and industrial products like tarpaulins and rope

- Organic Exchange is a not-for-profit organisation focused on creating environmental and social benefits through the expansion of organic agriculture. The organisation’s cotton project focuses on transitioning 10% of the world’s supply and demand of cotton to organic cotton within 10 years.

31 1.9 #1 % 24 %

Cotton accounts for about 31% of worldwide fibre production (source: Australian Grown Cotton Sustainability Report, 2014)

Australia produced 1.9 million bales of cotton in the 2014/15 season

In the last decade, Asia has become the number one destination for cotton imports

India accouned for approximately 24% of global cotton production in 2013/14

WORLD COTTON MARKET World production More than 100 countries in the world grow cotton (source: ICAC 2012) Cotton accounts for about 31% of worldwide fibre production (source: Australian Grown Cotton Sustainability Report, 2014) The global 20 year average (1993/94 to 2013/14) annual planted area is 33 million hectares of cotton (source: Bremen Cotton Exchange, 2014) producing about 26 million tonnes of lint each year Average world cotton yields reached 780 kilograms of lint per hectare in 2013/14, up markedly from 230 kilograms of lint per hectare in the 1950s (source: Bremen Cotton Exchange 2014)

Major cotton producing countries in 2014/15 China: 33.0 million bales India: 27.0 million bales United States: 18.0 million bales Pakistan: 10.3 million bales Brazil: 9.3 million bales Uzbekistan: 4.6 million bales Turkey: 2.8 million bales Australia: 1.9 million bales Turkmenistan: 1.6 million bales Greece: 1.4 million bales (source: Bremen Cotton Exchange, 2014)

WORLD COTTON MARKET

Supply and distribution (source: Bremen Cotton Exchange 2014 - unless otherwise stated) Production (million tonnes): 26.8 in 2012/13 (estimated) 25.7 in 2013/14 (projected) 25.4 in 2014/15 (projected) Consumption (million tonnes): 23.3 in 2012/13 (estimated) 23.6 in 2013/14 (projected) 24.5 in 2014/15 (projected) World consumption of textile fibres is mainly determined by population, consumer spending, which in turn depends on world economic growth, and prices (source: ICAC 2007)

India accounted for approximately 24% of global cotton production in 2013/14 In the last decade, Asia has become the number one destination for cotton imports The major importers of cotton in 2013/14 were China, Bangladesh, Indonesia and Turkey About 30% of the world’s consumption of cotton fibre crosses international borders before processing, a larger share than for wheat, corn, soybeans, or rice. Through trade in yarn, fabric, and clothing, much of the world’s cotton again crosses international borders at least once more before reaching the final consumer (source: USDA 2012)

Global value of cotton Cotton production and processing play an economic important in many cotton growing countries, including developing countries. Production of cotton and the subsequent exportation of lint and cotton products provide a source of export income In some countries that produce no cotton, the importation and processing of lint for domestic consumption or re-exportation as manufactured goods plays a vital economic role The projected price for 2014/15 is 159 US cents/kg. The world cotton market is estimated at USD $77 billion for 2014/15 (or $96 billion AUD as at January 2015) (source: ICAC 2015)

IMAGE: JOSH SMITH

China is the world’s largest cotton producer AND the world’s largest consumer of cotton fibre, with a share of around 25% of global cotton production in 2013/14

89 % 99 % 50 III B %

Australian cotton growers have reduced their insecticide use by 89% over the last decade, with some crops not sprayed for insects at all

Today, more than 99% of planted cotton in Australia uses biotechnology

50% more cotton is produced worldwide today on the same amount of land as compared to 40 some years ago (source: Cotton Inc., 2014)

Bollgard II® was introduced to Australia in 2004. The industry is currently working towards the introduction of Bollgard III®

BIOTECHNOLOGY AND COTTON In Australia Biotechnology refers to the use of cotton varieties with transgenic or genetically modified (GM) traits Most of the yield gains in Australia are attributed to plant breeding, exploiting genetic variation (also known as seed technology) and genotype responses to modern management The use of biotechnology in cotton has made a significant contribution in the dramatic reduction in insecticides applied to Australian cotton crops Australian cotton growers have reduced their insecticide use by 89% over the last decade, with some crops not sprayed for insects at all Other environmental, social and economic benefits of biotechnology in cotton are increased populations of beneficial insects and wildlife in cotton fields, reduced pesticide run-off, improved farm worker and neighbour safety, more time for farmers to spend with families, a decrease in labour and fuel usage, improved soil quality, reduced production costs, increased yield, reduced risks and further opportunities to grow cotton in areas of high pest infestation There are financial rewards for cotton farmers using biotechnology. “Since 2010 the total farm income gain derived by Australian cotton farmers from using this technology has been $395 million, an average of about $180 per hectare” (source: National Press Club Address 2012, Graham Brookes, Director of PG Economics UK) Australia, Mexico and the USA were the first countries to commercialise biotech cotton in 1996/97 (source: ICAC, 2015), starting in 1996 with Ingard® UNSPRAYED REFUGE

BIOTECHNOLOGY AND COTTON

Bollgard II® was introduced to Australia in 2004. The industry is currently working towards the introduction of Bollgard III® Today, more than 99% of planted cotton in Australia uses biotechnology Biotech cotton area has increased to over 60% of the world cotton area in 2010 (source: ICAC, 2015) Cotton incorporating transgenic traits has a sound track record of safe and successful use in Australia, with no adverse incident recorded in over 15 years of growing these varieties Bollgard II®, used widely in Australia, contains two genes from the naturally occurring soil bacterium Bacillus thuringiensis (Bt) and gives the plant an in-built tolerance to the Helicoverpa caterpillar. When the caterpillar ingests a small part of the cotton plant, the Bt protein disrupts the caterpillar’s digestive system and it dies Bt is a naturally occurring soil organism that produces insecticidal proteins and Bt sprays have been safely used for over 50 years in agriculture The cotton industry uses three types of transgenic cotton: Bollgard II ® (with two different genes from the naturally occurring soil bacterium Bacillus thuringiensis (Bt)) and Roundup Ready Flex® (with genes from the soil bacterium called Agrobacterium tumefaciens) and Liberty Link® (with genes from the soil microorganism Streptomyces hygroscopicus) Herbicide tolerant cotton (Roundup Ready Flex® and Liberty Link®) can reduce the amount of soil cultivation and herbicide required on cotton crops to control weeds and facilitates healthier soils through less soil disruption and reductions in residual herbicides In Australia, each genetic trait is individually assessed on a case by case basis by the Office of Gene Technology Regulator (OGTR), Food Standards Australia New Zealand (FSANZ) and the Australian Pesticides and Veterinary Medicines Authority (APVMA) Over the last decade new cotton varieties released have contained new features such as improved fibre quality, disease resistance, maturity and regional adaptability – research is being undertaken to develop varieties that require less water and/or are drought tolerant The use of transgenic cotton is a key component of grower’s Integrated Pest Management (IPM) strategies that use a combination of natural controls and pest-specific chemistry to further reduce pesticide use

Cottonseed oil doesn’t require GM food labelling. This is because when cottonseed is crushed to make oil, the oil is separated from the Bt and other transgenic proteins. Cottonseed oil from a transgenic cotton plant variety contains no genetically modified material

Globally Modern technology has enabled increased efficiency in cotton production not only in Australia, but around the world. 50% more cotton is produced worldwide today on the same amount of land as compared to 40 some years ago (source: Cotton Inc., 2014) The following findings are from the GM Crops & Food: Biotechnology in Agriculture and the Food Chain report by PG Economics Ltd, UK, 2014: - 18.2 million tonnes of additional crop production worldwide arose from positive yield effects of genetically modified cotton between 1996 and 2013 - At the global level, genetic modified technology has had a significant positive impact on farm income, with in 2012, the direct global farm income benefit being USD $18.8 billion. This is equivalent to having added 6% to the value of global production of the four main crops of soybeans, maize, canola, and cotton. Since 1996, farm incomes have increased by USD $116.6 billion - GM insect-resistant traits used in cotton have accounted for 99.3% of additional cotton production. Positive yield impacts from the use of this technology have occurred in all user countries (except for genetically modified insect resistant cotton in Australia where the levels of Heliothis sp. (boll and bud worm pests) pest control previously obtained with intensive insecticide use were very good; the main benefit and reason for adoption of this technology in Australia has arisen from significant cost savings and the associated environmental gains from reduced insecticide use) when compared with average yields derived from crops using conventional technology (such as application of insecticides and seed treatments) - The average yield impact across the total area planted to these traits between 1996 and 2012 is +16.1% for cotton

0.16 % 12 2 CO

%

The Australian cotton industry represents less than one third of one per cent of Australian agriculture’s greenhouse gas emissions (ranging from 0.16-0.29%)

On-farm case studies have indicated that the adoption of minimum tillage has reduced energy costs and greenhouse gas emissions by 12% since 2000

Australian cotton farmers continue to reduce greenhouse gas emissions and improve the land’s ability to store more carbon through practices and innovations

CLIMATE CHALLENGES AND COTTON Cotton growers, like other farmers, depend on the natural environment and the weather to produce their crop Cotton is a perennial plant grown commercially as an annual, summer crop in regions that experience climate variability driven by El Nino/La Nina cycles The Australian cotton industry has a strong history of adaptation and change to take advantage of new opportunities and Australian growers have already developed highly efficient and flexible farming systems in order to manage their crop in variable climates The industry is proud of its commitment to sustainability and responsible production, and this is driven by a sustained effort in research, development and extension. This ensures that the industry: is connected to the latest information regarding changes in climate, and the best ways to manage for this. is positioned to take advantage of the opportunities arising from and respond to government efforts to manage climate change and limit man-made greenhouse gas emissions The Australian cotton industry is relatively a very minor contributor to agriculture’s greenhouse gas emissions, representing less than one third of one per cent of Australian agriculture’s greenhouse gas emissions (ranging from 0.16-0.29%) Cotton growing has a better-than-neutral carbon footprint. Net on-farm emissions of greenhouse gases on cotton farms are negative because the cotton plants store more carbon than is released from production inputs used during growth IMAGE: IRENE FLETCHER

IMAGE: SOOZ MYHILL

CLIMATE CHALLENGES AND COTTON

The main sources of emissions on an irrigated cotton farm are synthetic fertilisers and electricity and fossil fuels used to power irrigation pumps On-farm case studies have indicated that the adoption of minimum tillage has reduced energy costs and greenhouse gas emissions by 12% since 2000 The industry has carried out a life cycle assessment of an Australian cotton T-shirt. It found the major environmental impact to be in the ‘use’ component of the garment (wearing then washing) rather than production and manufacturing Australian cotton farmers continue to reduce greenhouse gas emissions and improve the land’s ability to store more carbon through practices and innovations including: Maximising the efficiency of major inputs used in cotton growing such as energy and nitrogen by optimising irrigation pump performance, using fuel-efficient farm machinery Using alternative sources of nitrogen, e.g. the use of legume rotation crops which fix nitrogen in the soil Implementing other practices to improve soil health including using controlled traffic and minimum-tillage systems Further minimising machinery operations (and therefore fuel use) of spraying (through industry-wide use of herbicide-tolerant cotton), and during harvest (through broad scale changes in machinery used which replaces multiple machines with one Using renewable and alternative energy sources and fuels such as solar panels to power irrigation pumps, and biofuels Conserving and managing areas of native vegetation and riparian areas on farm, which are valuable carbon stores

The most up-to-date knowledge in these areas is delivered to growers through the industry’s extension network, CottonInfo, and the myBMP environmental management program which includes components on energy and input efficiency, natural resources and soil health. Some of the supporting tools that are available for growers include: a carbon footprint calculator for cotton farms which demonstrates how farmers can be carbon neutral, or even better, be carbon positive tailored information and decision support tools to understand and better manage weather and climate

IMAGE: GUY ROTH

These practices also contribute to developing landscapes that are more resilient to the impacts of drought and climate variability

27 % 60 tonne 1 mm 3 x

Cotton holds up to 27 times its own weight in water and becomes stronger when wet

About 60% of the world’s total cotton harvest is used to make clothing, with the rest used in home furnishings and industrial products

One tonne of cotton seed yields approximately 200kg of oil, 500kg of cotton seed meal and 300kg of hulls

Cotton linters are fine, very short fibres that remain on the cottonseed after ginning. They are curly fibres typically less than 3mm long and are used manufacture of paper (archival paper and banknotes)

PROPERTIES AND COTTON PRODUCTS Cotton is both a food and fibre crop The cotton plant produces fruit, known as bolls When mature the crop is picked and ginned - which separates the cotton fibre (or lint) from the seed Cotton lint makes up about 42 percent of the picked cotton by weight, and contributes about 85 percent of the total income from a cotton crop. The other 15 percent of income is from cotton seed Almost all parts of the cotton plant are used in some way including the lint, cottonseed, linters, stalks and seed hulls

Natural cotton fibre properties Cotton is a soft, absorbent and breathable natural fibre, making it the perfect fibre for clothing and undergarments worn close to the skin Cotton keeps the body cool in summer and warm in winter because it is a good conductor of heat Cotton is non-allergenic and, unlike synthetic fibres, cotton fibre is a natural product that contains no chemicals Cotton, due to its unique fibre structure, breathes better and is more comfortable than oil-based synthetic fabrics Cotton is one of the easiest fabrics to dye due to its natural whiteness and high rate of absorbency Australian cotton in particular is perfectly suited to colour application processes as it offers spinners crisp white lint, low breakages and stoppages, good throughput efficiency and uniformity of yarn

PROPERTIES AND COTTON PRODUCTS

Cotton holds up to 27 times its own weight in water and becomes stronger when wet Cotton can’t hold an electric charge, eliminating static cling

Products made from cotton linters Cotton linters are fine, very short fibres that remain on the cottonseed after ginning. They are curly fibres typically less than 3mm long Linters are used in the manufacture of paper (such as archival paper and bank notes) and as a raw material in the manufacture of cellulose plastics Linters are commonly used for medical supplies such as bandages, cotton buds, cotton balls and x-rays

Products made from cottonseed Cotton seed, which makes up around half the weight of the picked cotton, is mostly used to make cotton seed oil One tonne of cotton seed yields approximately 200kg of oil, 500kg of cotton seed meal and 300kg of hulls Cotton seed oil is cholesterol free, high in polyunsaturated fats and contains high levels of anti-oxidants (vitamin E) which contribute to its long shelf life. It can be used for deep frying, and for some margarines and salad dressings. Cotton seed oil is also used to make products such as soap, emulsifiers, cosmetics, pharmaceuticals, rubber, paint, water proofing agents and candles The by-product of the oil-extraction process is meal, which is used as stock feed. Cotton seed meal is a high protein meal that can be fed to most animals. Cotton seed hulls are also a valuable feed source for livestock Global cotton seed production can potentially provide protein requirements for half a billion people and many billions of other animals

$2 m $24 5 2 CO .25

Australian cotton growers pay a compulsory research levy of $2.25 per bale of cotton they produce

In 2014/15, cotton growers and the Australian Government co-invested $24 million through the CRDC into 260 research projects

Research is group into 5 key program areas: farmers, industry, customers, people and performance

Research and development is actively seeking ways to further improve water, fertiliser and energy use efficiency at the same time as reducing greenhouse emissions for Australian cotton growers

RESEARCH, TECHNOLOGY AND INNOVATION Australian cotton growers, in a partnership with the Australian Government, has been a long-term investor in research that has delivered significant benefits to growers, rural communities and Australia Australian cotton growers pay a compulsory research levy of $2.25 per bale of cotton they produce which is matched by the Australian Government up to a limit of 0.5 per cent of the gross value of production This research investment underpins the Australian cotton industry, and in the industry being recognised as world leaders in the adoption of technology, innovation, environmental management and the production of high quality, high yielding cotton The Australian cotton industry has identified the connections between improved productivity, natural resource management and addressing climate change. For example, research and development is actively seeking ways to further improve water, fertiliser and energy use efficiency at the same time as reducing greenhouse emissions The cotton industry’s research and development programs aim to increase crop yields, improve fibre quality, improve irrigation and water use efficiency, promote productivity and innovation, provide research information on salinity, river health, and groundwater and enhance biodiversity. More recently are efforts to better understand the requirements of our international markets and to attract and retain a skilled workforce The research effort also supports the development of sustainable production practices, the stewardship of agricultural chemicals and biotechnology and the industry’s environmental management program, myBMP (Best Management Practices) WATER MONITORING

RESEARCH, TECHNOLOGY AND INNOVATION

The Commonwealth Scientific & Industrial Research Organisation’s (CSIRO’s) cotton breeding program has played a major role in ensuring Australian cotton growers remain world leaders in cotton yield and quality New varieties are researched and tested to CSIRO to increase yield, use less water, reduce the need for chemicals and be resistant to diseases The cotton research and development effort is largely driven by cotton growers. Cotton Australia – via grower advisory panels – provides advice to the CRDC on research projects funded by the cotton research and development levy so that outcomes are relevant and practical at farm and industry level The industry’s CottonInfo program was launched in 2012 to connect growers with research, bringing cotton growers, consultants, and agronomists the latest news, information, events and research to achieve best practice in the industry. The program is a joint venture between Cotton Australia, the CRDC and Cotton Seed Distributors Over the life of the Cotton Catchment Communities Cooperative Research Centre (operational from 2006 to 2012), 428 research and extension projects involving over 1000 people were managed. (source: Weaving a Future, Seven Years of Cooperative Research Report, 2012)

IMAGE: JAMIE CONDON

The Cotton Research and Development Corporation (CRDC) works with industry to invest in research, development and extension for a more profitable, sustainable and dynamic cotton industry. In 2014/15, cotton growers and the Australian Government co-invested $24 million through the CRDC into 260 research projects over 5 program areas: farmers, industry, customers, people and performance

100 Arab traders bring two cotton fabrics, muslin and calico, to Italy and Spain

1641 First cotton spinning factory opens in Manchester, UK, marking the true beginning of Europe’s cotton industry

1996 Transgenic cotton varieties are first introduced. They will be widely adopted by the world cotton industry before the end of the 20th century

2011 World cotton prices peaked at their highest recorded levels ever. The Bremen CFI Index, one of the three most important price indices for cotton trade, stood at 246.15 cents/lb on 8th March

WORLD COTTON HISTORY 5000 B.C: Cotton fibre and cloth fragments found in Mexico date from this period 3000 B.C: Cotton first cultivated as a fabric in the Indus River Valley (present-day Pakistan) 2500 B.C: Chinese, Egyptian and South American civilisations begin weaving cotton fabrics 2500 B.C: Early farming societies in South and North America domesticate and breed two local species of cotton: Gossypium hirsutum and Gossypium barbadense 300 B.C: Alexander the Great’s army brings cotton goods into Europe following conquest of the Persian Empire. However, cotton cloth remains expensive and its use is limited 100 A.D: Arab traders bring two cotton fabrics, muslin and calico, to Italy and Spain 800s: The Moors introduce cotton cultivation to Spain 1492: Christopher Columbus finds the modern world’s most popular current cotton variety, Gossypium hirsutum, in the Bahamas 1500s: Denim fabric is initially produced in Nimes, France. Denim derives its name from ‘serge de Nimes’ (‘fabric of Nimes’) 1500s: Sailors from Italian port city, Genoa, begin to wear denim trousers. The word ‘jeans’ is derived from ‘Genes’, the French name for Genoa 1530s: Naturally coloured cotton fabrics are among the first items collected from the Americas and more technically sophisticated than fabric woven by European looms at the time 1600s: The East India Company brings rare cotton fabrics to Europe from India

WORLD COTTON HISTORY

1621: Cotton first produced in parts of present-day USA 1641: First cotton spinning factory opens in Manchester, UK, marking the true beginning of Europe’s cotton industry 1700s: The world cotton industry develops dramatically as Britain acquires colonies suitable for cotton growing whilst at the same time textile machinery improvements allow stronger yarn to be spun 1700s: Cotton replaces flax and wool as Europeans most popular fabric 1760s: Britain overtakes India as world’s largest cotton processor as a result of the Industrial Revolution 1764-67: The spinning jenny – a multi-spindle spinning frame – (1764) and Arkwright’s spinning frame (1767) are invented, enabling cheap mass production of cotton cloth 1793: American Eli Whitney patents the cotton gin, separating cotton 50 times faster than traditional hand methods. As a result of this and the advent of cheaper industrial dyes, Gossypium hirsutum, a white cotton species, replaces coloured varieties as the most popular cotton variety Early 1800s: Southern US states become the world’s largest exporter of cotton to thriving British textile mills 1920s: The USA accounts for more than half of the world’s cotton fibre 1939–45: During WWII, naturally green and brown cottons are again produced commercially to counter the lack of dyes available 1940s: Denim’s popularity becomes more widespread as its image shifts from durable clothing for blue-collar workers towards everyday apparel for the general public and youth in particular 1950/51: World cotton demand and production levels each reach seven million tonnes Early 1980s: Most native, coloured cotton varieties grown in Africa, Asia, Central and South America are replaced by all-white, commercial varieties 1996: Transgenic cotton varieties are first introduced. They will be widely adopted by the world cotton industry before the end of the 20th century 2003: The first transgenic cotton varieties to have two independently acting Bt genes are successfully introduced in Australia and the USA

2004/05: World cotton demand and production reach record highs of 23 and 26 million tonnes respectively 2006/07: World cotton average yields reach a record 747 kilograms per hectare, due in large part to increased use of biotechnology 2008: Structure of world in trade changing due to financial stress of Global Financial Crisis, volatility in the futures market and reduced demand 2009: The Better Cotton Initiative is established as an independent organisation bringing together farmers, ginners, traders, spinners, mills, manufacturers, retailers, brands and grassroots organisations in a unique global community committed to developing Better Cotton as a sustainable mainstream commodity 2011: World cotton prices peaked at their highest recorded levels ever. The Bremen CFI Index, one of the three most important price indices for cotton trade, stood at 246.15 cents/lb on 8th March 2013/14: The global 20 year average (1993/14 to 2013/14) planted area reaches 33 million hectares of cotton 2014: Cotton Australia signs an agreement with the Better Cotton Initiative (BCI) on behalf of Australia’s cotton industry to help secure access to future growth markets as Australian cotton growers contend with competition from synthetic fibres. The agreement transfers a BCI licence to Australian cotton produced under myBMP certification 2014/15: China, the world’s largest cotton importer and is also the biggest producer, produces an estimated 33.0 million bales

IMAGE: JULIE REARDON

42 % 63 % 70 1/3 %

Around 42% of an average cotton farm area is dedicated to native vegetation (source: Australian Grown Cotton Sustainability Report, 2014)

63% of farms have a riparian zone ranging between 2 and 15 km in length (on average 7 km) (source: 2011 Cotton Grower Survey, CRDC/Cotton CRC)

70% of cotton growers have river frontage and 75% of growers are actively managing their riparian zones (source: 2011 Cotton Grower Survey, CRDC/Cotton CRC)

Nearly one third of all Australian bird species are found in cotton growing regions

BIODIVERSITY AND COTTON Biodiversity refers to the variety of life forms found in an environment including animals, plants, bacteria, fungi and micro-organisms Managing biodiversity and natural resources surrounding cotton farms provides benefits to the environment and to the farm. Growers use natural resources to help manage pests naturally and to store carbon in the soil and vegetation The Australian cotton industry is committed to the careful and responsible management the natural environment The industry works with research organisations, catchment management authorities, regional natural resource management organisations and groups such as Landcare, to play its part in responsible landscape management The Australian cotton industry undertakes work to better understand vegetation on cotton farms - both the ecosystem services it provides such as carbon storage, erosion control, natural pest control and biodiversity value; as well as how the industry can improve the management practices of riparian lands to contribute towards their health myBMP (best management practices), the cotton industry’s environmental management program, helps growers to manage the natural environment Independent assessments have shown that Australian cotton growers have improved soil, and native vegetation management which is contributing to improved biodiversity Largely due to best management practices from growers, Australian cotton farms contain vibrant, active ecosystems where both nature and cotton production can happily thrive IMAGE: GUY ROTH

BIODIVERSITY AND COTTON

Plants

Animals

Around 42% of an average cotton farm area is dedicated to native vegetation (source: Australian Grown Cotton Sustainability Report, 2014)

Bats, birds, ants, wasps and other predatory insects are a cotton grower’s natural workforce against pests that attack cotton plants. Growers encourage beneficial insects and predator pests into cotton crops as part of Integrated Pest Management (IPM) systems reducing pesticides and encouraging natural eradication

63% of farms have a riparian zone ranging between 2 and 15 km in length (on average 7 km) (source: 2011 Cotton Grower Survey, CRDC and Cotton CRC) 70% of cotton growers have river frontage and 75% of growers are actively managing their riparian zones (source: 2011 Cotton Grower Survey, CRDC and Cotton CRC) Healthy, intact native vegetation provides important buffer zones, harbours beneficial insects and nature’s pest controllers (birds and bats), reduces soil erosion and helps keep waterways healthy Connecting remnant vegetation and replanting native species can help improve biodiversity by extending habitat and providing natural corridors for animals to move along Well managed native pastures are not only excellent for cattle feed and are relatively drought tolerant, but help improve biodiversity such as bird life on cotton farms Native vegetation provides windbreaks that reduce soil erosion and act as a buffer to the application of sprays such as herbicides Leaving standing and fallen dead timber, rocks and understorey shrubs provides habitats for native plants and animals Sowing small areas of local native grasses as a nursery for seed collection allows restoration if necessary, on other areas of the farm Practices used by cotton growers to manage riparian areas on their farms include: Fencing and selectively grazing Excluding grazing Control of weeds and pests Provision of alternative water points for stock Maintaining filter, buffer strips of vegetation Planting native trees and other vegetation (source: The Australian Cotton Water Story, 2012)

Native animals living in healthy native vegetation help keep the right balance of pests and predators Nearly one third of all Australian bird species are found in cotton growing regions. 153 bird species were found in natural vegetation in the Namoi Valley, a major cotton growing region in NSW. A bird study of 19 water storages on nine cotton farms in the Gwydir Valley recorded 42,495 birds representing 45 different species, including many of conservation significance 450 species of invertebrates have been recorded in 1 cotton field Cotton growers participate in feral pest control programs to protect native plants and animals as well flora and fauna monitoring such as recording animal tracks, diggings, footprints, scat, chewed bark, nests, spider webs and bird calls

Soils Australian soils are often described as ancient, highly weathered and infertile. Cotton is grown on floodplains where the soils are younger and more fertile than most Australian soils. The major soil types on which cotton is grown are grey, brown and black Vertosols (around 75 percent), that are naturally fertile, have high clay content and strong shrink-swell capacities Soil that is full of nutrients and organic matter and that can store moisture grow better, higher yielding crops, contribute to water use efficiency and break down residual herbicides faster Many cotton growers are using minimum or no till farming systems (where the soil is not ploughed, and stubble is retained and planted into) which has seen dramatic improvements in soil health, retaining moisture and nutrients, and a reduction in diesel fuel usage (hence carbon emissions) Cotton is grown in rotation with other crops (wheat, chickpeas and sunflowers) to increase nutrient levels in soil and are sometimes left ‘fallow’, allowing a natural build-up of nutrients Many cotton farmers use organic fertilisers (chicken and feed lot manures), and some are experimenting with bio-solids myBMP (Best Management Practices) helps growers to manage the soil health and nutrition management

IMAGE: JULIE REARDON

1997 The original BMP program began in 1997 and was reviewed and redeveloped in 2006-07

2006 The original BMP program was reviewed and redeveloped in 2006-07

2010 The current online system re-launched in 2010 as myBMP

2014 In 2014, Cotton Australia signed a landmark agreement with the Better Cotton Initiative (BCI) on behalf of Australia’s cotton industry - transferring a BCI licence to myBMP-certified Australian growers

AUSTRALIAN COTTON’S MYBMP ENVIRONMENTAL PROGRAM The widespread adoption of the myBMP (Best Management Practices) program has helped to deliver a responsible Australia cotton industry which is regarded as maintaining the world’s best practices and is seen as a model for change by other sectors of Australian agriculture myBMP is a farm and environmental management system for cotton growers to ensure that Australian cotton is produced according to best practice The original BMP program began in 1997 and was reviewed and redeveloped in 2006-07. The current online system re-launched in 2010 as myBMP myBMP allows growers and industry to access the latest technical data and research, find solutions to challenges and provides practical tools to help growers operate at maximum efficiency There are many benefits to the cotton industry’s commitment to responsible production through myBMP. These include safer farm workplaces, healthier natural environments, reduced input costs, better run farm businesses and improved community health myBMP assists cotton growers to keep pesticide use to a minimum, control weeds and diseases, maximise water use efficiency, improve soil health, protect and retain native animals and vegetation

AUSTRALIAN COTTON’S MYBMP ENVIRONMENTAL PROGRAM

Cotton farmers assess, document, monitor and are audited in 11 key areas of farm operations: Biosecurity – for prevention, management and control of pests and diseases Biotechnology – adherence to the requirements of genetically modified cotton varieties Energy and Input Efficiency - for more efficient energy inputs such as electricity and fuel Fibre Quality - for growing the best quality cotton possible Human Resources and Work Health and Safety - helps growers manage employees and contractors whilst providing a safe and compliant workplace Integrated Pest Management (IPM) - for management of pests, weeds and diseases Natural Assets - for managing soil, water and biodiversity on farm Pesticide Management - for all aspects of pesticide management, storage and use on farm Petrochemical Storage and Handling - for managing fuels and lubricants on farm Soil Health - for maintaining and/or improving soil quality and crop nutrition Water Management - covering water quality, efficiency of storage and distribution for both dryland and irrigated farming practices

Cotton Australia’s ‘Cotton to Market’ program was established to create confidence to use cotton in the textile supply chain, position Australian cotton in a future that demands responsiblyproduced cotton and create value for Australia’s cotton growers In 2014, Cotton Australia signed a landmark agreement with the Better Cotton Initiative (BCI) on behalf of Australia’s cotton industry. The agreement transfers a BCI licence to Australian cotton produced under myBMP certification and this agreement allows Australian cotton growers to participate more easily in that expanding market

IMAGE: PETE JOHNSON

Practical examples of myBMP include using natural techniques (like pupae busting) and softer chemicals to target particular pests, tail water recycling, crop rotations and stubble retention to improve soil health and retain soil moisture and irrigation scheduling and monitoring tools to limit water usage

IMAGE: JULIE REARDON

1991 2014 11 Since 1991, the Australian cotton industry has conducted independent assessments of its environmental performance, to track performance and suggest improvements

In 2014, Cotton Australia and the CRDC released the Australian Grown Cotton Sustainability Report, tracking and publicly recording the industry’s economic, social and environmental credentials

The myBMP program – Best Management Practices, a voluntary online system for individual growers to assess and improve performance in 11 key areas of the farm operation

RESPONSIBLE AND SUSTAINABLE COTTON PRODUCTION The Australian cotton industry is recognised internationally as a leader in sustainable cotton production and has been used as a model for change by other Australian agriculture industries Since 1991, the Australian cotton industry has conducted independent assessments of its environmental performance, to track performance and suggest improvements The Australian cotton industry’s environmental stewardship is underpinned by the myBMP program – Best Management Practices, a voluntary online system for individual growers to assess and improve performance in 11 key areas of farm operations There are many benefits to the myBMP program including safer farm workplaces, healthier natural environments, reduced input costs, better run farm businesses and improved community health and wellbeing In 2014, Cotton Australia and the Cotton Research and Development Corporation (CRDC) released the Australian Grown Cotton Sustainability Report, tracking and publicly recording the industry’s economic, social and environmental credentials

The world’s textile supply chain is increasingly demanding cotton (and other products) from responsibly-produced sources, right back to the farm

Cotton Australia promotes Australia’s efforts in responsible cotton production to the cotton supply chain including brands, retailers and manufacturers, via its Cotton to Market program

RESPONSIBLE AND SUSTAINABLE COTTON PRODUCTION

Cotton LEADS™ is a program that is committed to responsible cotton production and is founded on core principles that are consistent with sustainability, the use of best practices and traceability in the supply chain. This joint program, initiated by Australia and the United States, offers manufacturers, brands and retailers a reliable cotton supply chain solution and confidence that their raw material is responsibly produced and identified (source: Cotton LEADS, 2015)

IMAGE: TIM CHAFFEY

There are a number of international initiatives aimed at stewarding and continuously improving the global cotton industry, including:

Better Cotton Initiative (BCI) operates as a not-for-profit organisation. BCI brings together farmers, ginners, traders, spinners, mills, manufacturers, retailers, brands and grassroots organisations in a unique global community committed to developing Better Cotton as a sustainable mainstream commodity (source: BCI, 2015) Cotton Made in Africa is run by the Aid by Trade Foundation, and follows an innovative approach in development cooperation and ‘social business’ principles. (source: CMIA, 2015) Fairtrade Cotton is about better prices, decent working conditions, local sustainability and fair terms of trade for farmers and workers in the developing world. Fairtrade provides a certification system and product labels (FAIRTRADE Mark) to connect consumers and producers (source: Fairtrade, 2015) Organic cotton production methods are managed in accordance with organic standards (Source: Australian Certified Organic, 2014), of which there are many operating globally. The largest organic cotton producers by volume are India, China, Turkey, Tanzania and the United States (Source: Textile Exchange, 2014) PHOTO: JULIE REARDON

IMAGE: JULIE REARDON

1 1.3 % 70 % 96 st

Australian irrigated lint yields are now the highest in the world, being about three times the world average. Australian cotton growers produce more crop per drop than any other cotton producing country

Each gigalitre of water used for cotton production results in 1.3 direct jobs and generates $500,000 in gross value agricultural production (source: Stubbs Report, 2012)

In 2014, 70 percent of cotton farmers use soil moisture probes, up from 40 percent in 2006 (highest of all agriculture industries in Australia)

96 percent of irrigators have improved their furrow irrigation system or changed to an alternate irrigation system

WATER USE EFFICIENCY IN THE COTTON INDUSTRY Australian irrigated lint yields are now the highest of any major cotton producing country in the world, being about three times the world average. This means Australia cotton growers produce more crop per drop than any other cotton producing country The Australian cotton industry has achieved a 40% increase in water productivity over the last decade. (source: Australian Grown Cotton Sustainability Report 2014) The CSIRO breeds appropriate cotton varieties for Australian and regional conditions. Each grower selects the best and most efficient variety for their region and farm Cotton is an efficient plant, with the latest industry data showing approximately 70% of all water is used by the crop. This indicates that there is now less on-farm water losses and more of the water is used by the crop Most cotton growers have what are termed “general, or low security” water licences, which means they only get to access their share of the water once the needs of towns, stock and domestic use and the environment are met Cotton is only planted when sufficient water is made available from rivers and groundwater sources through government regulated water licensing schemes. When there’s no water, there’s no cotton In their ‘natural’ state, the rivers located in the southern half of Australia experience more variable flows than virtually any other rivers in the world. Between 1885 and 1960, history shows the Darling River stopped flowing at Menindee on 48 occasions – well before irrigation existed on the river or its tributaries

IMAGE: JAMIE CONDON

WATER USE EFFICIENCY IN THE COTTON INDUSTRY

Cotton is mostly grown in the 400-800mm summer rainfall zone, which means cotton crops can receive significant amounts of their water needs from rain during the growing season. In 201112 about 20% of the cotton crop was rain-grown, the rest irrigated Australia’s cotton growers have improved water use efficiency by 3-4% per year since 2003. (source: Third Australian Cotton Industry Environmental Assessment, September 2012) Australian cotton growers have almost doubled their irrigation water use index from 1.1 bales/megalitre in 2000-01 to 1.9 bales/ megalitre in 2009-10 Cotton’s average irrigation requirement is 7.8 megalitres per hectare. This compares to rice (12.6ML/ha), fruit and nut trees (5.6 ML/ha) and cut flowers and turf (4.9 ML/ha)Pasture for grazing accounted for the greatest amount of irrigated land (538,000 hectares) in Australia in 2010–11, with the volume of irrigation water applied representing 27% of the national total. (source: ABS Water Use on Australian Farms 2010-11) In 2013-14, the largest area of irrigated land in Australia was pasture and cereal crops used for grazing or fed off, which accounted for 714,503.2 hectares, or 30% of the total area irrigated (source: ABS Water Use on Australian Farms 2010-11) The largest volume of irrigation water was applied to cotton, which used 2,851 gigalitres, or 26% of the national irrigation total for the year (11,060 gigalitres) (source: ABS Water Use on Australian Farms 2010-11). 566,000 hectares were planted to cotton in 2010-11 Cotton is the lifeblood of many regional communities, employing 10,000 Australians in Queensland and NSW in a non-drought year Each gigalitre of water used for cotton production results in 1.3 direct jobs and generates $500,000 in gross value agricultural production. (source: Stubbs Report, 2012) Irrigation water for agriculture is used on the highest value crops. Farmers choose to “spend” their water entitlements on the crops that deliver the best return per unit of water, in many areas that crop is cotton

Once planted, Australian cotton farmers are smart about the way they manage water resources. The Australian Grown Cotton Sustainability Report 2014 showed that cotton growers are using a range of techniques to constantly improve water use efficiency: 70 percent of farmers use soil moisture probes, up from 40 percent in 2006 (highest of all agriculture industries in Australia) 96 percent of irrigators have improved their furrow irrigation system or changed to an alternate irrigation system 49 percent of irrigators had made changes to the flow or size of their siphons 35 percent have redesigned fields. For example, growers use laser-levelling to ensure uniform, well drained fields using GPS guidance equipment and position storage dams closer to cotton fields to reduce evaporation losses Other practices include irrigating to deficits, using drip and overhead sprinkler systems, better accounting of soil variations, changed bed shapes, using irrigation scheduling probes, furrow irrigation system optimisation evaluations, pump optimisation and reducing distribution losses

Additional water use efficiency driving practices include: Before planting their crop, cotton growers use sophisticated weather forecasting software to predict how much crop can be sustained before planting. Zero and minimum till farming is also used to help retain soil moisture Growers use information and technology (including soil moisture probes, satellites and drones) so they water only when and how much is needed Irrigation channels that pump water to the fields are lined to reduce loss through seepage Adhering to the Australian cotton industry’s environmental management program – myBMP. myBMP includes a water management module covering water quality, efficiency of storage and distribution for both dryland and irrigated farming practices to improve farming practices and carefully manage our natural resources IMAGE: DONNA HALL

WATER USE EFFICIENCY IN THE COTTON INDUSTRY

These systems can achieve labour savings and with some soil types, water savings (about 30 percent), but have significantly higher energy costs associated with water pumping and machine operation Mobile electromagnetic meters are used for easy and rapid assessment of soils for their suitability for irrigation Tail water recycling systems are implemented so that water is reused Covering storages to minimise evaporation Reducing evaporation by shortening row lengths Avoiding unnecessary water storage on farm by only purchasing water as it is needed and not putting water directly into dry storages which soak up water Growers are and lining storages and channels with clay or non-porous materials to avoid seepage. Thermal imaging and electromagnetic surveys can be used to identify “leaky” dams, pipes and channels so they can be repaired Mulching and stubble retention helps to retain soil moisture, reducing the need for irrigations Permanent wheel beds to reduce soil compaction and increase water infiltration Implementing software packages such as Water Track (www.watertrack.com.au)

IMAGE: GEORGIE CARRIGAN

Farmers are changing to alternative irrigation systems such as centre pivots and lateral move systems and it is expected there will be an increasing number of these machines in the future

IMAGE: JAMIE CONDON

1788 1934 2012 2014 The First Fleet brings cottonseed to Australia

Cotton production reaches 17,000 bales

Cotton Australia celebrates the organisation’s 40th anniversary

Cotton Australia and the CRDC release the Australian Grown Cotton Sustainabiltiy Report

AUSTRALIAN COTTON HISTORY 1788 - The First Fleet brings cottonseed to Australia 1830 - First shipment of cotton exported to England, consisting of three bags 1857 - Small quantities of dryland cotton grown in Queensland 1861-65 - American Civil War causes American cotton production to fall. Australia attempts to fill the gap 1870s - Australian cotton production peaks then falls as world prices decline 1926 - The Queensland Cotton Marketing Board is established. Government subsidy introduced to promote production in central Queensland 1934 - Cotton production reaches 17,000 bales 1954 - Cotton industry almost non-existent 1958 - Keepit Dam is completed on the Namoi River in NSW, providing irrigation water to the Namoi Valley 1960 - Limited irrigated cotton production commences in southwest Queensland 1961 - Commercial crop planted at Wee Waa, using water from Keepit Dam 1966 - Cotton established in the Macquarie Valley following completion of the Burrendong Dam. Cotton production also begins at Bourke 1968 - Emerald Irrigation Area produces first exportable surplus 1971 - Raw Cotton Bounty removed at the request of the cotton industry. Cotton production reaches 87,000 bales

AUSTRALIAN COTTON HISTORY

1973 - Cotton production on the Ord River Scheme ceases, mainly due to insect resistance to pesticides

2010/11 - Record crop of 4.1 million bales, industry in resurgence after almost a decade of drought

1975 - Cotton production reaches 110,000 bales

2011/12: Cotton continues to expand into the Riverina in southern NSW and the industry celebrates a back-to-back record crop of 5.3 million bales

1976 - Cotton established in Gwydir Valley at Moree using water from the newly constructed Copeton Dam 1977 - The construction of the Pindari and Glenlyon Dams allows cotton to be grown in the Macintyre Valley in Southern Queensland 1980 - Cotton production reaches 435,000 bales 1985 - Cotton production reaches 1.1 million bales 1990 - Cotton industry self-funds First Environmental Audit, leading to introduction of Best Management Practices (BMP) 1992 - World record yields in Australia lead to record 2.2 million bale crop 1995 - Drought causes harvest to fall to 1.5 million bales 1996 - The first transgenic cotton variety (Ingard®) introduced to Australia 1997 - Cotton production reaches 2.7 million bales 2001 - Crop reaches record high of 3.4 million bales 2001 - World cotton price reaches lowest level in nearly 30 years 2002 - Roundup Ready® cotton introduced to Australia

2012: Cotton Australia celebrates the organisation’s 40th anniversary 2013/14: Third year in a row recording a crop of more than 4 million bales 2013: The Australian cotton industry co-founds Cotton LEADS™ a partnership between the Australian and US cotton industries demonstrating a commitment to the supply and use of responsibly-produced cotton through national and international efforts. 2014: Cotton Australia signs an agreement with the Better Cotton Initiative (BCI) on behalf of Australia’s cotton industry to help secure access to future growth markets as Australian cotton growers contend with competition from synthetic fibres. The agreement transfers a BCI licence to Australian cotton produced under myBMP certification The 17th Australian Cotton Conference was held on the Gold Coast and attracted more than 1800 delegates, the biggest attendance on record in the event’s 34-year history

2002/04 - Worst drought in 100 years results in 60 per cent reduction in crop size

2014: Cotton Australia at the Cotton Research and Development Corporation (CRDC) release the Australian Grown Cotton Sustainability Report 2014

2003 - Cotton industry undertakes Second Environmental Audit

2014/15: Australian crop produces an estimated 1.9 million bales

2003 - Transgenic Bollgard II® trait introduced in Australia, replacing Ingard® 2005 - Australian crop sets new world record yield, leading to a 2.9 million bale crop 2005/06 - 95% of Australia’s cotton growers plant transgenic varieties, accounting for 80 per cent of total cotton crop 2007/08 - Australian cotton industry severely impacted by drought, leading to smallest crop in 30 years 2008/09 - A new path is set for Cotton Australia as it merges with a key research partner, the Australian Cotton Growers Research Association (ACGRA) 2009/10 - myBMP re-launched as an electronic, internet-based program, significant rains across cotton areas commences in August 2010

IMAGE: JAMIE CONDON

39 % 42 x 3 152

The average Australian cotton farm is run by growers with an average age of 39 years

The average Australian cotton farm dedicates 42% of farm area to native vegetation

Australian irrigated lint yields are three times the world average - this means Australian cotton growers produces more crop per drop

Cotton is one of Australia’s largest rural export earners and helps underpin the viability of more than 152 rural communities

AUSTRALIAN COTTON INDUSTRY OVERVIEW The average Australian cotton farm: - is family owned and operated - directly creates jobs for 6-7 people - is run by growers with an average age of 39 - grows 495 hectares of cotton, comprising 17% of the total farm area - supplements cotton with other crops including wheat, chickpeas and sorghum, and many Australian cotton farmers also graze sheep and cattle - dedicates 42% of farm area to native vegetation There are more than 1200 cotton farms in Australia, roughly half in NSW and half in Queensland The industry directly employs 10,000 Australians in a non-drought year (source: Australian Grown Cotton Sustainability Report, 2014) The cotton industry employs 15 times as many people as grazing and five times as many people as dryland cropping. (source: Stubbs Report, 2012) The Australian cotton industry produced a record crop in 2011/2012, with more than 583,000 hectares planted. This area produced more than 5 million bales, with a total forecast value of close to $3 billion Australian irrigated lint yields are now the highest of any major cotton producing country in the world, being about three times the world average - this means Australia cotton growers produce more crop per drop

AUSTRALIAN COTTON INDUSTRY OVERVIEW

Most of this yield gain is attributed to seed technology

IMAGE: BROOKE SUMMERS

The top 20% of Australian growers achieved yields of 12 bales/ hectare in 2013 (source: Boyce Report, 2014). Average irrigated crop yields exceeded 10 bales/ha for the first time in 2008-09 and reached record levels in 2012-13 at 10.73 bales/ha - growing more cotton with the same amount of land (source: Australian Grown Cotton Sustainability Report, 2014) For the past 10 years, the average annual amount of cotton lint produced in Australia was 641,806 metric tonnes (2,827,338 bales). Production reached a record high in 2011-12 at 1,215,870 metric tonnes (5.3 million bales) and a low in 2007-08 at 136,831 metric tonnes (600,000 bales). The five year average production quantity from 2009-2014 is 3.9 million bales

Cotton is a major commodity, representing from 30 to 60 percent of the gross value of the total agricultural production in Australian regions where it is grown (source: Australian Grown Cotton Sustainability Report, 2014) Cotton is one of Australia’s largest rural export earners and helps underpin the viability of more than 152 rural communities

IMAGE: ANDREW MURDOCH

Cotton is mostly grown in the 400-800mm summer rainfall zone in Queensland and NSW, which means cotton crops can receive significant amounts of their water needs from rain during the growing season

The major production area in NSW stretches south from the Macintyre River on the Queensland border and covers the Gwydir, Namoi and Macquarie valleys. In NSW cotton is also grown along the Barwon and Darling rivers in the west and the Lachlan and Murrumbidgee rivers in the south

Australia uses 100% local seed (source, ICAC, 2011) In an average year, Australia’s cotton growers produce enough cotton to clothe 500 million people Australia has an enviable reputation on the world market as a reliable supplier of very high quality cotton, and can command a premium price for this reason. Varieties from CSIRO’s cotton plant breeding program has improved yield, High Volume Instrument (HVI) classing quality and are showing superior textile performance attributes. (source: Cotton Conference Paper, Michael Bange and Robert Long, 2012) Australia produces around 3% of the world’s cotton but is the third largest exporter, behind the USA and India The major buyers of Australian cotton are currently China (68%), Indonesia, Thailand, South Korea, Bangladesh and Japan (source: Australian Grown Cotton Sustainability Report, 2014)

IMAGE: JOSH SMITH

In Queensland, cotton is grown mostly in the south in the Darling Downs, St George, Dirranbandi and Macintyre Valley regions and the remainder is grown near Emerald, Theodore and Biloela in Central Queensland

IMAGE: JAMIE CONDON

$2b rd 3 1.25 % 85

Over a five year average between 2009 and 2014, the Australian cotton crop is worth AUD $2 billion annually, underpinning the viability of 152 rural communities

Australia is the third largest exporter of cotton in the world (behind the US and India)

More than 1.25 billion kilograms of cottonseed was produced in Australia in 2013/14 (source: ABARES 2014)

Cotton lint contributes about 85% of the total income from a cotton crop

ECONOMICS OF COTTON IN AUSTRALIA Australian cotton is sold into a highly globalised market, competing against around 100 other cotton producing nations for its share of global cotton trade The Australian cotton industry has earned a reputation as a reliable supplier, with fast shipping times to export destinations, and reliable delivery Australian cotton is in high demand and can attract a price premium due to its high quality characteristics, reliability and a proven track record in meeting manufacturer and consumer needs Australian cotton is of consistently high quality, almost zero contamination and offers short shipping times from Australia’s ports to Asian markets Australian cotton is exported through ports in Brisbane, Sydney and Melbourne China, Indonesia, Thailand, Korea, Bangladesh, Vietnam and Pakistan were the main markets for Australian cotton in 2013 (source: ABARES 2014) Australia is the third largest exporter of cotton in the world (behind the US and India) More than 1.25 billion kilograms of cottonseed was produced in Australia in 2013/14 (source: ABARES 2014). Australia exports cottonseed to Japan (crushed and cattle feed), Korea (crushed), China (crushed) and the USA (dairy feed) depending on parity price and the value of the Australian dollar. Seed exports were valued at AUD $255 in 2014 (source: Australian Grown Cotton Sustainability Report 2014)

IMAGE: JOSH SMITH

ECONOMICS OF COTTON IN AUSTRALIA

Over a five year average between 2009 and 2014, the Australian cotton crop is worth AUD $2 billion annually, underpinning the viability of 152 rural communities Cotton growers sell their cotton to one of a number of independent Australian merchants who then sell it into the world’s markets, aiming to get the best price possible. It’s a very competitive and transparent market The price that a grower receives for each bale of cotton produced is set by the world market which is dependent on a number of factors including the state of the world economy, agricultural politics, fashion trends, synthetic fibre price, weather, natural disasters and cotton’s own supply and demand Cotton prices have ranged from AUD $300 to $600/bale. The all-time high was $758/bale in 1995 while the all-time low was $233/bale in 1986. Prices were also very high in 2011 due to a short term shortage of cotton in exportable locations, reaching an average price of $664/bale. The average price for 2009-2014 has been $396/bale. Between 2011 and 2014, prices have hovered around $440/bale (source: Australian Grown Cotton Sustainability Report 2014) Cotton lint makes up about 42% of the picked cotton by weight, and contributes about 85% of the total income from a cotton crop. The other 15% of income is from cottonseed. There is a forward market for cotton in Australia where growers can sell their cotton at a fixed price, up to three years ahead (source: Australian Cotton Shippers Association, Cotton Conference Presentation 2012) Australian cotton growers have an excellent reputation for good business practice in the world market due to contract sanctity and reliable counterparties and strict adherence to International Cotton Association (ICA) rules Australian cotton growers are market savvy, understand the components that make up the price of their cotton, monitor price movements and take action at price levels that suit their businesses (source: Australian Cotton Shippers Association, Cotton Conference Presentation 2012)

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Generally, the growing season from planting to picking lasts approximately six months

Cotton seed is planted in the spring as soon as the soil is warm enough to be sure of satisfactory seed germination and crop establishment (when the temperature reaches 14 degrees three days in a row)

Australian cotton growers have reduced their insecticide use by 89% over the last decade, with some crops not sprayed for insects at all

The cotton lint is tightly pressed into bales. An Australian cotton bale weighs 227kg (500 pounds)

COTTON GROWING CYCLE Cotton is a perennial plant grown commercially as an annual, summer crop. It prefers hot summers with low humidity and a maximum amount of sunshine In general, cotton grows more quickly as the average daytime temperature rises Generally, the growing season from planting to picking lasts approximately six months, as outlined below Season start and finish times differ from north to south due to variations in the climate Cotton can be grown either as dryland (reliant on rainfall) or as irrigated cotton (requiring supplemented water supply)

Australian cotton grower’s calendar August to September: farm and soil preparation Growers select their cotton variety for the season. There are a large number of varieties of cotton that can be selected and grown. Varieties are generally chosen based on yield, quality, disease resistance characteristics and biotechnology traits. But other traits such as determinacy, leaf shape and season length may also be important Fields are levelled and graded Soil prepared for planting, weeds removed, nutrients added if necessary. Most growers now leave their cotton stubble standing in the field and mulch it back into the soil to add valuable nutrients Soil moisture checked, pre-watering if necessary IMAGE: JAMIE CONDON

COTTON GROWING CYCLE

September to November: planting Soil temperature checked Cotton seed is planted in the spring as soon as the soil is warm enough to be sure of satisfactory seed germination and crop establishment (when the temperature reaches 14 degrees Celsius at a depth of 10 cm for at least three days in a row) Cotton seeds emerge from the ground within 5 to 10 days of planting - depending on soil temperature and moisture

Growers usually choose to harvest the cotton crop once most bolls have opened and fully matured. It is extremely important that cotton is harvested dry, or discoloration may occur and reduce quality When mature, the crop is harvested mechanically and placed into large modules. The modules are loaded onto trucks and transported from the farm to a cotton gin (short for en-gin). Cotton gins are factories that separate cottonseed and trash from the lint (raw cotton fibre)

Refuge crops established

The cotton lint is tightly pressed into bales. An Australian cotton bale weighs 227kg (500 pounds)

November to February: growing season

Once the cotton bales are ginned, pressed and containerised, they are loaded on to trucks and trains and sent to port for shipping, mostly to overseas markets

Squares (flower buds) develop several weeks after the plant starts to grow, then flowers appear a few weeks later. The flowers then drop, leaving a ripening seed pod that produces fruit, known as bolls, after pollination

November to February: growing season

On irrigated cotton farms the initial irrigation (watering) is usually followed by a further four to five irrigations, at two to three week intervals, from mid-December to late-February. This differs depending on the region and on natural rainfall levels

Cotton classing sorts the fibre into different quality based grades. The better the fibre quality, the higher the grade and the more the grower is paid for the cotton

Approximately fourth months of growing is needed for the cotton bolls to ripen and split open

Growers rotate crops (such as cotton, maize and wheat) which helps to minimise pests and diseases, reduce pesticide use, retain soil moisture levels, build and maintain healthy soils, and better manage soil nutrients. Some growers will graze livestock over winter

Growers protect their crops from pests using Integrated Pest Management (IPM). The use of biotechnology in cotton has made a significant contribution in the dramatic reduction in insecticides applied to Australian cotton crops. Australian cotton growers have reduced their insecticide use by 89% over the last decade, with some crops not sprayed for insects at all Growers conserve natural enemies to pests (known as beneficial insects) and manage their natural resources to help suppress pests, which is at the heart of Integrated Pest Management

March to June: harvesting Crop checked by agronomists to ensure it is ready to harvest Defoliation is carried out to remove the plant’s leaves off and crack bolls open

IMAGE: SOIL MOISTURE PROBE

Marketing activities undertaken

Growers make improvements and carry out maintenance onfarm to prepare for next season

52 m 1.5 30 mm 28

There are up to 52 species of cotton in the Gossypium genus (source: The Biology of Gossypium hirsutum L. and Gossypium barbadense L. (cotton), 2008)

The cotton plant’s taproot reaches a depth of 1.5 metres

About 30 species of insects attack cotton plants, and if not controlled can cause serious damage. The main pests in Australia are the Helicoverpa caterpillar, aphids, thrips, mirids and white fly

Each cotton boll usually contains 27-45 seeds. Attached to each seed is between 10,000 – 20,000 tiny fibres about 28mm in length

COTTON PLANT Cotton is a natural fibre that grows on a plant The plant is a shrub native to tropical and subtropical regions, including the Americas, Africa, and India. The greatest diversity of wild cotton species is found in Mexico, followed by Australia and Africa (source: The Biology of Gossypium hirsutum L. and Gossypium barbadense L. (cotton), 2008) Australian flora contains 17 native Gossypium species that are all members of a distinct group found exclusively in Australia. They are distant relatives of cultivated cottons (source: Fryxell 1979b; Fryxell 1992; Seelanan et al. 1999; Brubaker et al. 1999a; Brubaker et al. 1999b) There are up to 52 species of cotton in the Gossypium genus. (source: The Biology of Gossypium hirsutum L. and Gossypium barbadense L. (cotton), 2008). The most commercially grown cotton species is Gossypium hirsutum, first developed by the Mayan civilisation in Mexico The cotton plant is a leafy, green shrub related to the hibiscus Squares (flower buds) develop several weeks after the plant starts to grow, then flowers appear a few weeks later. The flowers then drop, leaving a ripening seed pod that becomes the cotton boll (the fruit) after pollination Cotton is grown commercially as an annual shrub and reaches about 1.2 metres in height. Its leaves are broad and heart shaped with coarse veins and 3-5 lobes. The plant has many branches, with one main central stem The cotton plant’s taproot reaches a depth of 1.5 metres The plant also produces seeds that are contained in small capsules surrounded by fibre hidden in the cotton bolls IMAGE: JAMIE CONDON

COTTON PLANT

Each cotton boll usually contains 27-45 seeds. Attached to each seed is between 10,000 – 20,000 tiny fibres about 28mm in length Cotton fibre is made from cellulose, has a thin coating of wax and is thin and hollow like a straw In general, cotton grows more quickly as the average daytime temperature rises Australia’s cotton growing season lasts approximately six months, starting between August-November (soil preparation) and ending between March-June (picking) – depending on the region About 30 species of insects attack cotton plants, and if not controlled can cause serious damage. The main pests in Australia are the Helicoverpa caterpillar, aphids, thrips, mirids and white fly Cotton can be affected by a range of diseases that have the potential to devastate the industry. The six most serious ones are bacterial blight, Texas root rot, cotton leaf curl disease, blue disease and exotic strains of Fusarium wilt and Verticillium wilt (source: Innovative Disease Management, Karen A. Kirkby, 2012) A number of environmental factors can affect the growth of cotton, particularly in the early stages, including heat shock, cold shock, sand blasting, hail damage, lighting, drought and radiation and water logging All parts of the cotton plant are used. Cotton fibre is processed into yarn and fabric, the seeds can be crushed for oil or animal feed, the remaining plant is mulched and even the linters are used to make products like cotton balls More than 100 countries grow cotton (source: ICAC, 2014) Cotton is grown between 45 degrees north and 35 degrees south of the equator. (source: ICAC, 2012) Cotton is the most widely produced natural fibre in the world and represents about 31% of the world textile market (source: Australian Grown Cotton Sustainability Report, 2014)

1 yrs 3 % 89 227 %

In 2010 organic cotton produced worldwide amounted to a little over 1% of total cotton grown (Source: ICAC 2011)

It can take more than three years for a farm to receive organic certification

Australian cotton growers have reduced their insecticide use by 89% over the last decade, with some crops not sprayed for insects at all

The cotton lint is tightly pressed into bales. An Australian cotton bale weighs 227kg (500 pounds)

ORGANIC COTTON The term ‘organic’ refers to food and fibre farming and production methods that are managed in accordance with organic standards (Source: Australian Certified Organic, 2014) and is grown using seeds that are not genetically modified In 2010 organic cotton produced worldwide amounted to a little over 1% of total cotton grown (Source: ICAC 2011) In 2012-13, the largest organic cotton producers by volume were India, China and Turkey, Tanzania and the United States (Source: Textile Exchange, 2014) In most countries where organic cotton is grown, conventional and genetically modified cotton crops co-exists Cotton grown without the use of synthetic chemicals is considered ‘organic cotton’. Some organic cotton growers may use natural crop management and protection tools such as sulphur dust, citric acid, nitrogen, and zinc sulphate (Source: ICAC, 2006) It can take more than three years for a farm to receive organic certification Organic cotton farms can attract more pests (Source: University of California, 2006) compared to transgenic or genetically modified cotton crops that have in-built tolerance to some pests Most organic standards take a number of factors into consideration, including water and irrigation, soil, air, seeds, machinery, and pest/weed control (Source: NASAA, 2004) Organic production typically requires more human labour, land and cost input than conventional production (source: European Union, 2014 and ICAC, 2006)

ORGANIC COTTON

A six-year study of three cotton growing methods found that organic cotton records lower yields than conventional cotton growing methods (source: University of California, 2006) Some organic certification processes are conducted from field to fabric, and may include ginning and manufacturing In some cases, organic cotton is processed using the same dyes, fabrication and finishes as conventional cotton (unless stated on the product label) In Australia, more than half a dozen organisations manage organic certification systems Consumers can find organic cotton in a range of everyday items ranging from make-up removal pads and cotton earbuds, to denim and baby clothing Products labelled ‘organic’ may contain varying percentages of organic cotton A small number of Australian cotton growers have experimented with organic cotton in the past, but a number of factors have prohibited it from entering long-term commercial production in Australia In 1993/94 for example, approximately 700 hectares of organic cotton was grown in Australia under irrigated conditions at a higher cost but with a low yield level of 685 kg/ha. Yield was low mainly due to high insect damage and such a low yield level is not economically sustainable under the highly mechanised… system in Australia.” (source: ICAC, 1994)