2009-10 ca annual report
TRANSCRIPT
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ANNUAL REPORT
2009-10
Advancing Australian Cotton
Suite 4.01247 Coward StreetMascot NSW 2020P: 02 9669 5222F: 02 9669 5511www.cottonaustralia.com.au
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Contents
CHAIR’S REPORT 4
CEO’S REPORT 5
COTTON AUSTRALIAONE VOICE FOR GROWERS 6
THE GROWERREPRESENTATION MODEL 7
COTTON AUSTRALIA BOARD 8
COTTON AUSTRALIA STAFF 9
AUSTRALIA’S COTTON INDUSTRYNATURALLY WORLD’S BEST 10
FINANCIAL SUMMARY 11
MEMBER SERVICES ANDCAPACITY BUILDING 12
RESEARCH DIRECTION AND STEWARDSHIP 16
POLICY AND ADVOCACY 20
COMMUNICATION AND ENGAGEMENT 24
2 COTTON AUSTRALIA
“Our new organisation hasbeen getting on with the jobof delivering its five-yearstrategic plan.”
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Just over a year on from a merger between Cotton
Australia and the Australian Cotton Growers Research Association, our new organisation has been getting on
with the job of delivering its five-year strategic plan.
We have a skilled and professional staff team in place that, alongwith the Board, are providing a sole voice for growers. We have
integrated human and fiscal resources, reduced duplication andare delivering positive outcomes for our growers.
In August last year the final stages of the merger were completed
with the formal election of a Board of nine, replacing aninterim Board. Now we have an opportunity to assess the
effectiveness of the new Cotton Australia, with its additionalresearch and stewardship functions, to ensure it has achieved
the original goals.
There is no doubt that Cotton Australia now provides one united
voice for growers, with better synergies between the industry’s
research and development efforts and our policy function. A good example of this has been the incorporation of R&D into
our lobbying program, with strong messages about the value of rural R&D put forward to government at every opportunity.
An additional positive outcome from this has been enhanced
working relationships with partners such as the Cotton Researchand Development Corporation (CRDC), Cotton Catchments and
Communities Cooperative Research Centre, Australian CottonIndustry Council (ACIC) and individual researchers.
These collaborations have seen us respond to issues as they ariseeven faster and with a more united approach than ever before.
No better example this year was the outbreak of a new exotic
pest in Central Queensland and the Burdekin, the SolenopsisMealybug, which required a coordinated and immediate
response from our research, policy, regional management andcommunication areas in association with state and Federal
government agencies.
In a further show of industry collaboration, Cotton Australia has joined with CRDC and the ACIC to develop a Cotton Industry
Vision 2029. It was recognised that the industry needed a clearershared vision that would enhance industry performance,
organisational collaboration and capacity, and enable an
alignment of thinking about the future. We await the final results
of this project as it receives wider industry review.
To effectively monitor and evaluate performance, in December2009 the Cotton Australia Board underwent its annual internalreview. The Board’s performance and operation was assessedagainst each area of the Annual Operating Plan, along with a
review of strategic direction. The review found that overall theorganisation was tracking well and that priority issues hadn’tchanged – natural resource management, water policy andproperty rights, climate change and the future of rural R&D willcontinue to be the focus of our efforts.
The review also showed that Communication and Engagementwas critical to the long-term success of the organisation andrequired additional resources and priority, that industry capacitycould be better harnessed through member representation invarious roles and that an industry succession plan was necessary.
The Board will turn its attention to these issues in the coming year.
Looking ahead, the coming season appears to be providing abetter start, both in global cotton prices and water availability,than for many years. This is welcome news, but with a potentiallybigger crop comes additional challenges. Cotton Australia isalready working with financiers and input supply industries toensure that sufficient products and services will be available andwill be working with new growers and those growing cotton for
the first time in many years to ensure they are up to date withindustry best practice.
Once again I would like to acknowledge the support of theBoard and Executive of the organisation. Their enthusiasm andcommitment to the industry is tireless and their capacity to meeteach new challenge is inspiring.
I wish all growers well for the 2010-11 cotton season and theopportunities it provides and assure you that Cotton Australia willbe there to support you and provide strong industry leadershipinto the future.
Joanne GraingerChair
CHAIR’S REPORT
2009-10 was a big year for the Cotton Australia team, with
the implementation of an ambitious Annual OperatingPlan covering four key portfolio areas: Member Services
and Capacity Building, Research Direction andStewardship, Policy and Advocacy and Communication
and Engagement.
Importantly, this plan was driven by input from growers throughour General Meetings and a successful Cotton Matters Forum
to develop the issues that growers wanted addressed and tomonitor progress.
Staff were not only engaged in proactive implementation of
the Annual Operating Plan this year, but a number of ‘leftfield’ issues arose including severe and widespread flooding
throughout Queensland and the incursion of a new exotic pest,the Solenopsis Mealybug.
The floods in Theodore, St George and Dirranbandi brought
mixed blessings for the industry. Crop losses on some farmswere as high as 100%, with quality affected in most areas and
damage to on-farm infrastructure widespread. Cotton Australiaworked closely with growers on the ground and the Queensland
Rural Adjustment Authority to secure much needed relief fundingand support in all areas. On the positive side, the floods have
seen many on-farm storages fill and a subsequent predicted
increase in the crop to a possible 250,000 hectares or morenext season.
Two new faces in the policy team and a new Regional Managerfor Queensland saw grower representation ramped up at a critical
time during the year, with issues of water and climate change
firmly on government agendas at state and Federal levels.
Cotton Australia was pleased with the announcement that a
coalition deal on the Carbon Pollution Reduction Scheme(CPRS) would exclude agriculture indefinitely. While this deal
ended up being defeated in the Senate, it followed months of sustained lobbying, alongside the National Farmers Federation
in Canberra. The team has also worked hard to influence the
content of the Murray-Darling Basin Plan that will set newSustainable Diversion Limits (SDLs) for irrigation that could
heavily impact on individual farmers and our communities.
I am also pleased to report that damage to cotton crops from
Phenoxy herbicide drift was reduced dramatically compared tolast season. While we mustn’t become complacent, Cotton
Australia’s campaign including the new Cottonmap website,
radio advertising and direct communication with resellers andapplicators appears to have had a positive effect.
In terms of environmental stewardship, the “myBMP” programwas further developed under a new Best Management Practices
(BMP) team. BMP continues to be a flagship program for Cotton Australia and we look forward to grower’s participation in the
new program over the next 12 months.
Cotton Australia’s role in providing grower-feedback to theCotton Research and Development Corporation on research
investment continued during the year, as did our coordinatingrole in the TIMS Committee to oversee industry stewardship
of biotechnology traits.
Communication with growers about their new, mergedorganisation continued with a new e-newsletter format, a
series of Advancing Australian Cotton brochures and in-depthBackground Briefings on issues such as Water, Phenoxy
Herbicides and Safe Harvest.
Keeping key decision makers such as politicians and the mediainformed of industry issues and facts continued to be a major
focus of the communication strategy, and we’ve seen reducedincidents of negative publicity over the last three years.
Looking forward, I am confident that our current team of experienced professionals will continue to represent grower’s
interests at all levels on policy and issues that impact most
at farm level, and I thank them for their diligent efforts overthe last year.
Best wishes to all growers for the coming season.
Adam KayChief Executive Officer
FLOODS IN THEODORE,
ST GEORGE AND DIRRANBANDIBROUGHT MIXED BLESSINGSFOR THE INDUSTRY.Cotton Australia CEO Adam Kay inspecting a 2009-10 cotton crop
CEO’S REPORT
4 COTTON AUSTRALIA COTTON AUSTRALIA 5
THE COMMITMENT TO THE
INDUSTRY IS TIRELESS AND THEIR CAPACITYTO MEET EACH NEWCHALLENGE IS INSPIRING.Cotton Australia Chair since 2008, Joanne Grainger
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6 COTTON AUSTRALIA COTTON AUSTRALIA 7
Cotton Australia is the key
representative body for the
Australian cotton growingindustry, led by a Board of ninecotton growers and ginners.
The organisation was establishedin 1972 (as the Australian Cotton
Foundation) and in 2009 mergedwith the Australian Cotton Growers
Research Association to provide
one united voice for cottongrowers across research, natural
resource management and cottonproduction issues.
Cotton Australia plays a leadership role
in assisting the Australian cotton industryto be world competitive, sustainable and
accepted by the community. Cotton Australia drives the industry’s strategic
direction, retaining its strong focus on
R&D, promoting the value of the industry,ensuring environmental stewardship and
implementing policy objectives inconsultation with stakeholders.
Cotton Australia has offices in Sydney,Brisbane, Narrabri and Toowoomba. It is
from these ‘hubs’ that Cotton Australiagoes about its daily business of working
with growers on-farm and engaging
decision makers and opinion leadersat all levels of government.
The activities of Board and Staff aredirected by an Annual Operating Plan,
underpinned by a 2009-13 Strategic
Plan that sets out priorities and coreareas of business.
OUR VISION
A sustainable Australian cotton industrythat is valued for its environmental,
economic and social contribution.
OUR PURPOSE
To advance the interests of the Australian
cotton growing industry.
OUR KEY PORTFOLIOS
1. Member Services and CapacityBuilding
2. Research Direction and Stewardship
3. Policy and Advocacy
4. Communication and Engagement
OUR VALUES
1. RESPECTWe respect the views, opinions andconcerns of others at all times.
2. OPENNESS
We ensure that information is availableand accessible to our members, staff
and all relevant parties.
3. INTEGRITY
We operate with honesty, decency,
consistency and courage.
COTTON AUSTRALIA
MEMBERS
• Auscott Limited
• Biloela Cotton Growers’ Association
• Brighann Ginning
• Caroll Cotton Company Pty Ltd
• Central Highlands Cotton Growers
& Irrigators Association Inc
• Cotton Seed Distributors
• Crop Consultants Australia Ltd
• Darling Downs Cotton Growers’ Inc
• Darling River Cotton Pty Limited
• Darling River Food and Fibre
• Dawson Valley Cotton Growers’ Association
• Dirranbandi Cotton Growers’ Association
• Dunavant Enterprises Ltd
• Gwydir Valley Cotton Growers’ Association
• Lachlan and Murrumbidgee CottonGrowers’ Association
• Lower Namoi Cotton Growers’ Association
• Macintyre Valley Cotton Growers’
Association
• Macquarie Cotton Growers’
Association
• Menindee and Lower Darling
Cotton Growers’ Association
• Mungindi Water Users’ and Cotton
Growers’ Association
• Namoi Cotton Co-op
• North Bourke Growers Ginning
• North West Ginning Pty Limited
• Queensland Cotton CorporationLimited
• St George Cotton Growers’ Association
• Tandou Ltd
• Twynam Cotton Pty Ltd
• Upper Namoi Cotton Growers’
Association
• Walgett Cotton Growers’
Association
• Wathagar Ginning Company
COTTON AUSTRALIAONE VOICE FOR GROWERS
PRO-ACTIVEREGULATORYENVIRONMENT
EXECUTIVE SUMMARY – 2009-13 STRATEGIC PLAN
OUR STRATEGY
OUR PORTFOLIOS
• A cohesive and progressivecotton industry throughout thesupply chain
• Environmentally sustainable
water and land use• Cotton industry enhanced
through adoption of researchoutcomes
• Industry capacity to rapidlyrespond to changinggovernment and societaldemands
• Government, media, keydecision maker and community
acceptance of the value of the Australian cotton industry
• Enhanced market position forthe Australian cotton industry
Member Servicesand CapacityBuilding
• 5 year strategic plan
• Human resourcestrategy
• Define core role andvalue proposition forCotton Australia
• Access to aninnovative team of people who providequality servicesto members
Research Directionand IndustryStewardship
• Grower directed
research• Coordinated working
relationshipsbetween researchorganisations
• Cotton Conferencekey avenue forresearch outcomes
• Stewardshipinitiatives/ programs
Policy and Advocacy
• Grower endorsedposition on key
issues• Policies relevant to
the social, economicand environmentalneeds of the industryand Australiancommunity
• Legislation facilitatesa competitive Australian cottonindustry
• Leverage policypositions
Communication andEngagement
• Freshcommunication
strategy• Cotton Australia
Member’sForum – two-waycommunicationloop
• Deepen workingrelationships withstakeholders –government andgeneral public
• Develop a cottongrowing cultureof cooperation/ collaboration
ORGANISATIONALCAPACITY &EFFICIENCY
ENVIRONMENTALLYSUSTAINABLEPRACTICES
COMMUNITYSUPPORT &MARKET DEMAND
A SUSTAINABLE COTTONINDUSTRY VALUED FORENVIRONMENTAL, ECONOMIC AND SOCIAL OUTCOMES
+ + +
THEGROWER REPRESENTATION MODEL
COTTONRESEARCH & DEVELOPMENT
CORPORATION
Advisory Panel VALUE CHAIN
Advisory PanelBIOSECURITY
Advisory PanelFARMING S YSTEMS
Advisory PanelHUMAN CAPACITY
Board approvedCOTTON AUSTRALIA LTD
• Industry strategy
• Policy decision
s
• Organisational capacity
• Financial oversight
Corporate GovernanceStanding Commitee
Executive Team
GENERAL MEETING (of Members’ Representatives )
Commitee(R&D Project)
recommendationsFormal CRDCreporting @ CA
General Meetings
• Representatives of all Cotton Australia members for broad based advisory input and capacity• Grassroots prioritisation of Annual Operating Plan objectives & emerging issues
(CRDC)
ELECTED BOARDSIGNS OFF ON:
• R&D prioritisation
• CRDC project advice
• Advice on emerging policy issues• Strategic input into Cotton Australia’s Annual Operating Plan
Cotton Australia coordinates and facilitates the TIMS, Biosecurity and NORCOM committees
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8 COTTON AUSTRALIA COTTON AUSTRALIA 9
The Annual General Meeting in August 2009 saw the formal election of the Cotton Australia Board, replacing interim
Directors that were in place following a merger with the Australian Cotton Growers Research Association.
This Board is responsible for development and oversight of the strategic direction of the organisation.
2009-10 saw a re-building of staff capacity at Cotton Australia, with the team focussed on the key areas of policy and
advocacy, grower services and communication.
COTTON AUSTRALIABOARD
COTTON AUSTRALIASTAFF
ADAM KAYChief Executive OfficerBased: Sydney
BRAD PFEFFERPolicy Officer (resigned)Based: Sydney
STU HIGGINSmyBMP OperationsBased: Sydney
THERESE WOODENFinance ManagerBased: Sydney
JAMES HOULAHANNSW Regional ManagerBased: Narrabri
ALLISON DAVISmyBMP Service ManagerBased: Narrabri
GREG KAUTERNSW Policy ManagerBased: Sydney
GORDON BAKERQLD Regional ManagerBased: Toowoomba
CHRISTINA O’HAREReceptionistBased: Sydney
JOANNE GRAINGERChairCotton grower, Mungindi QLD
SIMON CORISHCotton growerGoondiwindi, QLD
LYNDON MULLIGANCotton growerMoree, NSW
ANDREW WATSONDeputy ChairCotton grower, Boggabri, NSW
BOB DALL’ALBAChief Marketing OfficerQueensland Cotton
ANDREW PARKESCotton growerMoree, NSW
BOB BELLChief Executive OfficerNamoi Cotton
HAMISH MILLARCotton growerEmerald, QLD
CLEAVE ROGANCotton growerSt George, QLD
ROB CAIRNSQLD Policy ManagerBased: Brisbane
BROOKE SUMMERSCommunication ConsultantBased: Sydney
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10 COTTON AUSTRALIA COTTON AUSTRALIA 11
Cotton is a natural fibre, grown
under the Australian sun on about
800 farms from Emerald in the northof Queensland to Hillston in southern
NSW. Most cotton farms grow anaverage of 400 hectares of cotton
and are owned and operated by
Australian families and employapproximately eight staff.
The 2009-10 cotton crop is likely toproduce approximately 1.7 million bales
from 184,000 hectares, compared with1.4 million bales from 165,000 hectares
in the previous season. Summer rains
in many cotton regions in 2009-10,followed by flooding throughout
Queensland in April 2010 filled on-farmstorages, providing some positive news
for cotton farmers who have beenbattling drought for up to six consecutive
seasons. It is hoped that this is the start
of a rebuilding of Australia’s cottonindustry, back to a crop of three million
bales or more every year.
Cotton is grown on some of the deepestand richest soils in Australia that have
a unique capacity for storing water byswelling and shrinking in harmony with
the natural wetting and drying cycles of their regions. Likewise, the agricultural
community’s livelihood swells and shrinks
with droughts and floods – and Australiancotton farmers have adapted to survive
in what can be an unforgivingenvironment when the rains don’t come.
They have learned to make morefrom less - producing the highest
yielding, highest quality, most
environmentally-friendly cotton in theworld. Cotton farming communities are
now working with leading manufacturersand premium brands to differentiate
their product, placing it into the handsof consumers all over the globe.
The world wants our cotton. Although
a relatively small producer on the worldscale, Australia is the world’s third
largest cotton exporter, producing
sustainable, high quality, low contaminantcottons that attract a premium on theworld market. Continuous improvements
in Australian cotton quality, particularly
staple length and strength, meansour raw product is increasingly being
used for the production of premiumquality fabric.
Close to 50 regional communities arereliant on cotton production, which
underpins regional prosperity and socialinfrastructure in these communities. In a
normal year the Australian cotton industrydirectly employs over 10,000 Australians
and supports 4,000 businesses that rely
on cotton.
Australian cotton farmers participate in
a voluntary environmental program calledBest Management Practices (BMP),
which ensures cotton is produced andmanufactured with the highest
environmental standards from the farm
and beyond. Our innovative farmpractices have seen water use efficiency
double in the last 25 years, and Australian cotton growers deliver two
to three times more cotton per land areathan the global average.
AUSTRALIA’S COTTON INDUSTRYNATURALLY WORLD’S BEST
FINANCIAL SUMMARY
INCOME
YEAR LEVY OTHER INCOME
2005/2006 $3,866,199 $338,220
2006/2007 $3,888,766 $251,101
2007/2008 $2,012,114 $303,394
2008/2009 $944,100 $1,482,015
2009/2010 $2,203,624 $654,326
OPERATING VS CAPITAL
YEAR OPERATING CAPITAL
2005/2006 $3,551,831 $139,888
2006/2007 $3,212,645 $237,193
2007/2008 $2,211,566 $49,312
2008/2009 $1,940,928 $8,924
2009/2010 $2,085,648 $5,726
OPERATING EXPENDITURE
BY PROGRAM 2009/10 2008/09
Board and Executive $442,296 $423,336Policy and Advocacy $395,077 $263,232
Affiliations $109,977 $103,067
Public Affairs $224,278 $186,812
Education $329 $5,618
Grower Services/BMP $332,871 $397,831
Office Overheads $367,371 $378,147
Administration $161,749 $157,353
Research $51,700 $25,532
TOTAL $2,085,648 $1,940,928
GROWER CONTRIBUTION RATE
68%2005/06
2006/07
2007/08
2008/09
2009/10
67%
68%
69%
68%
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Flooding in numerous Queensland cotton growing regionsin April 2010 brought mixed blessings, with water causing
immediate damage to cotton crops and infrastructure inthe Theodore, Comet River, St George and Dirranbandi
areas. In some areas entire crops were destroyed, while
quality was adversely affected in most flood-affectedregions.
On the positive side, and once the flood waters receded, thismassive influx of water brought welcome relief from a relentless
drought. It is hoped that the northern parts of the industry will be
on the road to recovery over the coming few seasons.
Cotton Australia’s Regional Managers and policy team provided
immediate support and assistance to the growers affected,playing a key role in gathering data and identifying areas of
greatest need. Cotton Australia facilitated the information flowfrom the local level to government decision makers who in turn
assisted growers and communities with grants and support
through the Queensland Rural Adjustment Authority. Cotton Australia also successfully lobbied for joint Commonwealth-State
funded grants to be extended to parts of the Banana ShireCouncil and the Central Highlands Regional Council.
Cotton Australia will continue to assist in ensuring the recoverycommitments made by governments are implemented over the
coming year.
MEASURING THE IMPACT
THEODORE
Size of Flood: Dawson River peaked at over 13 metres, a onein 50 year event
Number of cotton growers: 15
Hectares under cotton in 2009-10 season:
Approximately 3,500
Hectares lost and/or damaged (est): 1,700
Other damage: fencing, crops, earthworks, levy banks andirrigation infrastructure
Loss of income for cotton growers: upwards of $8 million
ST GEORGE
Size of Flood: Balonne River peaked at 13.1 metres, a one
in 100 year event
Number of cotton growers: 27
Hectares under cotton in 2009-10 season:
Approximately 9,000Hectares lost and/or damaged (est): up to 1,800
Other damage: major infrastructure damage to storage walls,
levy banks, pumps, roads and town
DIRRANBANDI
Size of Flood: 13.1 metres
Number of cotton growers: 12
Hectares under cotton in 2009-10 season:
Approximately 2,000
Hectares lost and/or damaged (est): up to 400
Other damage: infrastructure damage to storage walls, levy
banks, pumps, roads and town
MEMBER SERVICES AND CAPACITY BUILDING
12 COTTON AUSTRALIA COTTON AUSTRALIA 13
FLOODS RAVAGE QUEENSLAND
GOALS OF THE 2009-13STRATEGIC PLAN
1. Establish and implement a five-year
strategic plan based on the needs of the
cotton growing community and the future
global cotton environment
2. Establish a human resource strategy for
Cotton Australia and the industry
3. Establish and promote the core role
and value proposition of the newly
merged Cotton Australia to members
and stakeholders
4. Facilitate leadership and capacity building
programs and opportunities
5. M anage a focused and innovative staff
team providing quality services
In some areas, entire cotton cropswere wiped out as a result of the floods
PORTFOLIO ONE
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INDUSTRY LEADERSHIP
Cotton Australia oversaw two major
industry leadership programs during
the year: The Future Cotton LeadersProgram and the Voices of the Future
Program, both designed to train, mentorand encourage young people into
industry leadership positions.
Young irrigators from four industries –cotton, rice, dairy and wine – were
chosen to participate in the inaugural Voices of the Future Program.
This included a forum in Canberra tohave a say on the future of the Murray–
Darling Basin and follow up meetings
with senior representatives from theDepartment of Agriculture, Fisheries and
Forestry, Department of Environment,Water, Heritage and the Arts and the
Murray Darling Basin Authority.
The cotton industry was represented
by young growers Sarah Ball (Gwydir),
Matt Norrie (Namoi), Brendan Barry(Menindee/Lower Darling) and Brendon
Warnock (Namoi).
Cotton Australia, in partnership with
the Cotton Research Development
Corporation, also ran the second FutureCotton Leaders Program. This offers the
opportunity for participants to meet otherlike-minded people in the cotton industry,
set goals and develop a plan to achievethem, experience new ideas, and take
away new information and tips frominspiring speakers.
CLOSINGTHE FEEDBACKLOOP
General Meetings throughout the
year continued to be a fruitful forum
for interaction between growers andCotton Australia and delivered direct
feedback to inform industry policyand research needs. Meetings in
Moree and Toowoomba saw Cotton Australia member representatives from
across the industry gather to discuss
policy issues, industry challenges andresearch and development needs.
Member representatives are drawnfrom local Cotton Grower Associations,
ensuring a full range of representativeviews from across the cotton belt.
General Meetings continued to highlight
core business and were useful in ‘groundtruthing’ projects such as the Phenoxy
herbicide drift management plan,Cottonmap and key work in policy areas
such as road transport issues, water andcarbon footprint.
COTTON AUSTRALIATEAM CAPACITY BUILDING
2009-10 was a year of rebuilding
staff following many years of
drought, particularly in the policyand advocacy and Best Management
Practices teams. Cotton Australiawelcomed Queensland Policy Manager
Rob Cairns back to the industry, afterstints at the World Wildlife Fund and the
Bureau of Sugar. Brad Pfeffer also joined
the policy team in Sydney to round outthe organisation’s lobbying efforts, and
a new Queensland Regional Manager,Gordon Baker, signed up in the
Toowoomba office. After laying thefoundations for the new myBMP
Program, Louise Adcock left Cotton
Australia and was replaced by actingBMP Manager Stu Higgins and BMP
Service Officer Allison Davis.
The staff closely participated in the
development, implementation andevaluation of the Annual Operating Plan,
with quarterly meetings to track progress
and develop strategy.
14 COTTON AUSTRALIA COTTON AUSTRALIA 15
Cotton Australia’s Strategic Plan addressesissues facing the industry until 2013
2009-10 Future Cotton Leaders group,pictured with grower Barb Grey, Cotton
Australia Chair Joanne Grainger and CRDCCEO Bruce Finney
From left to right: Cotton Australia CEO Adam Kay, Chair Joanne Grainger andFuturist Sandy Teagle
Cotton Australia’s Regional ManagersJames Houlahan (left) and GordonBaker (right)
Cotton Australia gathers with growers todiscuss important industry issues
ADVANCING AUSTRALIANCOTTON
Cotton Australia is now one year in
to the delivery of a five-year strategic
plan that was developed by theBoard into 2009. An internal review of
the plan conducted in November foundthat many of the key issues originally
identified remain relevant and willcontinue to dominate in the coming
years. These challenges include rural
skills shortages, market access,natural resource management,
meeting the demands of consumers,addressing negative public perceptions,
biotechnology, water, carbon footprint,capital investment and extensive
government regulation.
Importantly, growers have been closelyinvolved in reviewing and monitoring the
Strategic Plan through a formal feedbackloop, with adjustments made as new
issues arise.
COTTON INDUSTRY DEVELOPS2029 VISION
What will the cotton industry look
like 20 years from now? If industry
leaders have got it right, it will be avibrant, profitable and attractive rural
industry to work in, while confrontingnumerous challenges head on. For the
first time, a ‘2029 Vision Strategy’ wasconvened by the Australian Cotton
Industry Council, and developed at a
series of meetings held with all industrysectors throughout the year.
With the help of well-known futurist,Sandy Teagle, industry leaders
workshopped various scenarios and
challenges that cotton growers andindustry will face in the next two
decades. The idea was to unite theindustry behind a single vision and
continue to steer it in a positivedirection. The project was greatly
enhanced through valuable and directfeedback from all of the industry, with
individuals able to take part via on-line
surveys and feedback.
SERVICINGOURGROWERS
Cotton Australia’s QLD and NSWRegional Managers have again had
a very busy and productive yearsupporting local Cotton Grower
Associations and servicing the
needs of growers.
Regional Managers delivered strong and
timely on-ground support on the followingkey activities and important issues:
• Phenoxy spray drift management
campaign, in particular promotion andsupport for the Cottonmap initiative
and reporting of adverse impacts fromspray drift
• Module transport regulations –direct consultations with road transport
authorities to negotiate an agreed
pathway for achieving 100% vehicledimension compliance
• Industrial relations reform –facilitation of information sessions to
brief growers on the provisions of thenew Federal Pastoral Award
• Murray-Darling Basin Authority
draft Basin Plan – contributing tothe stakeholder consultation phase
• Best Management Practices –responding to growers queries, auditing
and re-certification
• myBMP – contributing to technicalcontent development, grower trials
and review
• Mealybug outbreak in central
QLD – participation in key stakeholderconsultations, facilitation of grower
information sessions and promotion
of ‘come clean, go clean’ protocols
Cotton Australia’s newly appointed QLDRegional Manager Gordon Baker (left),
with Emerald Cotton grower Nigel Burnett
“GROWERS HAVEBEEN CLOSELYINVOLVED INREVIEWING ANDMONITORING THESTRATEGIC PLAN.”
“2009-10 WAS A YEAROF REBUILDING STAFF
FOLLOWING MANY YEARS OF DROUGHT.”
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The cotton industry’s biosecurity arrangements weretested during the 2009-10 season, with a new pest
discovered by expert cotton industry entomologist,Dave Murray, on 13 January 2010. The Phenacoccus
solenopsis, known as the Solenopsis Mealybug, was later
confirmed as a species different to those already presentin Australia and was found to be established on at least
30 farms, weeds and home gardens around Emerald inCentral Queensland. The pest was also found in the
Burdekin region in Queensland and late in the season,two positive collections were made from cotton crops on
the Darling Downs.
Damage to cotton crops in the Emerald district occurred inpatches and varied from little effect on some farms to badly
affected hot spots. The full extent of damage is not yet known,but the Mealybug in effect kills the cotton plant, resulting in
serious losses in yield. The pest was therefore cause for
serious concern.
Despite subsequent investigations, the method for introduction
of Mealybugs remains unknown. However, we do know thatMealybugs can be spread through movement of infested plants,
and can be transported by wind and rain, on clothing, footwearand vehicles.
The procedures within the Emergency Plant Pest Response
Deed were triggered by the positive identification of this newexotic pest in January. However, after consideration of current
distribution, it was determined that an emergency responseaimed at eradication of the pest (such as quarantining farms
or stopping machinery movements) was not feasible.
Approximately 50 cotton growers and industry representativesmet in Emerald in early February to discuss the issue and
growers were unanimous in their view that eradication of thepest was most likely not possible. An industry working group
was formed to develop management and control options, in
consultation with local growers.
This group, including representatives from Cotton Australia,
Queensland Department of Employment, EconomicDevelopment and Innovation, Biosecurity Queensland and the
Cotton CRC worked to quickly develop a Mealybug
Management Protocol, particularly surrounding farm hygieneand machinery movements for the 2010 picking season.
In time for the commencement of picking in Emerald the groupwas able to conduct assessments for disinfestation of
Mealybugs from farm machinery, obtain an emergency usepermit for the superior Pulse® treatment, obtain a commitment
from Biosecurity Queensland to provide a certified inspector for
picking machinery in Emerald and amend the industry ComeClean Go Clean farm hygiene protocol to include recommended
management practices. Work and trial research continues inanticipation of further issues with Mealybugs next season.
RESEARCHDIRECTION ANDSTEWARDSHIP
16 COTTON AUSTRALIA COTTON AUSTRALIA 17
OUTBREAK OF MEALYBUGSIN QUEENSLAND
A new exotic pest, the Solenopsis Mealybug,was found in Emerald, the Burdekin and on the
Darling Downs during the 2009-10 season
GOALS OF THE 2009-13STRATEGIC PLAN
1. Provide direction on grower driven research,
development and extension to the Cotton
Research and Development Corporation
2. Work with relevant research organisations
to achieve a coordinated common objective
to cotton research
3. Ensure Australian Cotton Conference
continues as the key dissemination point
for research outcomes
4. Lead industry stewardship initiatives
5. Contribute to securing ongoing cotton
industryresearch and development funding
PORTFOLIO TWO
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LOBBYING TORETAIN RURALR&D FUNDING
Cotton Australia was extremely
disappointed when the Federal
Government last May announceda decision to disband Land and
Water Australia. Since then, the FederalMinister for Agriculture, the Hon.
Tony Burke has continued to put thespotlight on agricultural research and
development by announcing a
Productivity Commission review intothe functioning of all rural Research
and Development Corporations.
Cotton Australia has been a leader in
confronting the challenge to ensure
that vital rural research doesn’t facefurther government funding cuts and
incorporated this issue into a sustainedlobbying campaign. This included
submissions and meetings with theProductivity Commission, convening
meetings of other rural groups to devise joint strategy and meetings with key
politicians and advisors in the Treasury,
Finance, and Agriculture portfolios.
myBMP – A NEW ERAFOR ENVIRONMENTALSTEWARDSHIP
The cotton industry’s environmental
program, Best Management
Practices, underwent a majorrenovation during 2009-10, with the
new myBMP program trialled withgrowers in June 2010. The main areas
of work, which included extensiveconsultation with industry, included:
• Updating content in 13 modulescovering topics such as biosecurity,
natural assets and integrated pestmanagement
• Migrating the program to a web-based format
• Linking each best practice with
the latest R&D available
• Developing a new auditing program
Key challenges were to ensure cotton
growers in the existing BMP programcould be transferred to “myBMP” with
little disruption or additional work and toensure that the Queensland Department
of Environment and Resource
Management’s agreement with Cotton Australia regarding statutory Land andWater Management Plans would
continue uninterrupted.
ENSURING BIOSECURITY THROUGH PLANTHEALTH AUSTRALIA
Cotton Australia represents the
industry in biosecurity through its
membership of Plant Health Australia(PHA) and is updated on changes
to Australia’s biosecurity systemsthroughout the year. Following a major
government review of Australia’squarantine and biosecurity systems as a
consequence of the equine influenza
incursion, new Biosecurity legislationis due to be introduced. This will
substantially upgrade the quarantineand biosecurity powers of the Australian
Government as part of broader reformsassociated with the challenges of
modern commerce and trade systems.
Signatories to the Emergency PlantPest Response Deed, including Cotton
Australia, met during the year todetermine the issue of coverage of bees
and unprocessed plant products. Cotton Australia argued they should be eligible
for owner reimbursement costs should
they be destroyed or perish as aconsequence of an incursion response.
A full revision of the Cotton IndustryBiosecurity Plan was also completed,
resulting in the release of version two
in November 2009.
18 COTTON AUSTRALIA COTTON AUSTRALIA 19
GROWER DRIVENFEEDBACK ON COTTONR&D
Cotton Australia’s role as the
representative organisation to the
Cotton Research and DevelopmentCorporation (CRDC) requires a
regular two-way flow of feedbackon research and development
throughout the year.
Cotton Australia members and staff arerepresented on four panels that review
critical areas of CRDC research:biosecurity; farming systems; the value
chain; and human capacity.
Panel members contribute many hoursin reading and discussing research
proposals and feedback is provided thatis vital in guiding the CRDC to conduct
effective research that can be practicallyapplied at farm level.
Key Cotton Australia Activities
• October 2009: Cotton Australiaprovided feedback on 80 CRDC
Preliminary Research Proposals
• February 2010: Panels discussedand provided constructive feedback
on CRDC Full Research Proposals forfunding in 2010-11
• July 2009 and January 2010: Panelsoversaw progress of all continuing
research projects
PROTECTING COTTON’SBIOTECHNOLOGY TRAITS
The Transgenic and Insecticide
Management Strategies (TIMS)
committee has been charged withstewardship since 1995. Made up of
representatives from Cotton Australia, theCrop Consultants Association and
research bodies, the committee monitorsand manages potential resistance to
insecticides, Bt and herbicide tolerant
cotton crops. The committee takesadvice from a number of technical panels
and considers latest industry research toensure resistance management plans
(RMPs) are up to date.
During 2009-10, the TIMS committeeundertook the following activities:
• Consulted, reviewed and amendedBollgard II RMPs for final APVMA
approval by planting in September
• Reviewed and approved
recommendations on planting
windows, risk management plansand Bt resistance contingency plan
• Consulted, reviewed and ratifiedregional cotton industry 2009-10
insecticide resistance managementstrategies
• Reviewed Crop Management Plans
for Roundup Ready FLEX and LibertyLink Cotton
• Attended Resistance ManagementRoadshow to present latest research
findings and update industry on
changes to resistance managementstrategies for the coming season
AUSTRALIAN COTTONCONFERENCEFASHIONING THE FUTURE
Cotton Australia and the Australian
Cotton Shippers Association have
again joined forces to run thesuccessful Australian Cotton
Conference in August 2010 under anaspirational theme – Fashioning the
Future. Now in its 30th year, theconference has evolved to become a
fully integrated industry conference that
encompasses all sectors of the cottonsupply chain. The Conference is
overseen by a Committee of volunteerswho are committed to showcasing
the cotton industry and sharing itsinnovations, research and best practice
with a wide audience.
The Conference will bring togethergrowers, researchers, agronomists,
merchants, ginners, service providers,spinners, international traders and brand
owners in an exchange of knowledge,innovation and ideas for the future.
A varied program delivered by expert
speakers is offered to delegates, alongwith a host of social and networking
activities to encourage interactionbetween the various sectors of industry.
Cotton Australia’s NSW Regional Manager(left) with Gwydir cotton grower andMember of Farming Systems Advisory
Panel, Joe Robinson
From left to right, Cotton Australia’s GregKauter, Research Economists Aaron Morelyand Ana Markulev, Associate CommissionerCliff Samson and Commissioner PhilipWeickhardt attend rural R&D tour in Narrabrias part of Productivity Commission ReviewThe 15th Australian Cotton Conference
will be held at the Gold CoastConvention and Exhibition Centre from10-12 August 2010
Pidgeon pea refuge (left) is one of the keystrategies in the cotton industry’s resistancemanagement plan
myBMP is a new, on-line one stop shop forbest practise in the Australian cottonindustry
The cotton industry’s biosecurityarrangements were put to the test with anoutbreak of exotic mealybugs this year.
“COTTON AUSTRALIA IS CONFRONTINGTHE CHALLENGE TO ENSURE VITALRURAL RESEARCH DOESN’T FACEFURTHER FUNDING CUTS.”
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The Basin Plan will perhaps have greater implications for
cotton irrigators than any other policy change in the last
five years. Part of the Federal Government’s reformsunder the Water Act 2007, the Basin Plan will impose
extraction limits on water for irrigation in the Basin,based on Sustainable Diversion Limits (SDLs).
Cotton Australia’s greatest concern is that the socio-economicimpacts of potential cuts to water allocations will be enormous
and have not been properly accounted for in the Plan’s
development. Already we are seeing damage to regionalcommunities following the ongoing water buyback program.
Research released this year by the Cotton CRC found thatremoving 790 gigalitres (GL) of irrigation water from the
Basin could see the loss of as many as 26,500 regional jobs
(and the government has purchased more than this amountof water already).
Cotton Australia conducted its own research through the year,focusing on the Gwydir Valley, the most heavily-targeted valley
in the buyback. More than 100GL of water has been boughtfrom willing sellers in the Gwydir, or about 20% of general
security entitlements. This could mean 15,000 hectares less
cotton in good years and 90-100 fewer jobs, resulting in severenegative socio-economic impacts for towns such as Moree.
Cotton Australia has been fighting hard to leverage goodoutcomes for the industry in dealing with this massive challenge.
The organisation has been heavily involved in political and
departmental lobbying and has continued to fight rigorouslythrough its membership of the National Farmers Federation,
Queensland Farmers Federation and NSW Irrigators’ Council.
Staff have been involved in several Murray Darling Basin
Authority (MDBA) forums and consultations on the Basin Plan
and constructed a detailed submission on potential SustainableDiversion Limits and their impacts. Policy staff continually briefed
Ministers Wong and Burke and their advisory staff, the PrimeMinister’s office and the Opposition. The team worked with
northern Basin irrigator groups and local government to ensurea strategic and coordinated approach in responding to the Plan.
Frustratingly, progress on the infrastructure component of Water
for the Future moved very slowly. Through most of the year theCommonwealth and States continued to blame each other for
the impasse, while regional communities continued to wait forthe potential benefits of this on-farm infrastructure investment.
The months ahead – and even the next three years before the
Plan is implemented – will continue to pose a major challengefor the industry to protect its property rights and water
entitlements to ensure a viable rural industry and sustainableregional communities.
POLICY AND ADVOCACY
20 COTTON AUSTRALIA COTTON AUSTRALIA 21
Cotton Australia participated in numerous consultations onthe draft Basin Plan during the year including pictured here
(from left to right) Auscott’s Bernie George, the Chairmanof the Murray Darling Basin Authority Mike Taylor and
Cotton Australia CEO Adam Kay
MURRAY DARLING BASIN PLAN
GOALS OF THE 2009-13STRATEGIC PLAN
1. Influence government policy to enable the
cotton industry to operate competitively in
the Australian and global market place
2. Develop industry positions in consultation
with growers on key strategic issues
3. Maintain currency of policies to ensure
relevance to the social, economic and
environmental needs of the industry
4. Leverage policy positions through like-
groups within the supply chain and
agriculturalsector, ensuring Cotton
Australia policy is included and articulated
PORTFOLIO THREE
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Cotton Australia’s comprehensive communication,education and engagement campaign to reduce the
impact of Phenoxy herbicide spray drift on cotton cropscontinued this year, with positive results for growers.
The plan included a broad range of activities, including:
• Int ensive lobbying of the APVMA, state regulatory agenciesand politicians
• Di rect marketing to farmers via chemical resellers, machinery
sales and spray applicators
• A targeted adverti sing, media and awareness campaign
across all cotton growing valleys
• Promoti ng chemical applicatio n training available througha jointly funded project of the Cotton and Grains Research
and Development Corporations
• Establishing a stronger network with grains industry and
agribusiness organisations• Immed iate follow-up with Federal and State regulatory
authorities following drift incidents
• A new Phenoxy herbicide section on the Cotton Australiaweb site
In addition, a new website was launched, www.cottonmap.com.au,
a tool that growers and consultants used to map the season’scotton fields. This allowed surrounding neighbours to check the
placement of sensitive cotton fields before applying Phenoxyherbicides that could drift and cause damage.
Cottonmap was well supported by growers and agronomistswith 217 registered users mapping 2,027 cotton fields, or
almost 95% of the 2009-10 cotton crop.
Based on grower reports and confirmed incidents of Phenoxyspray drift damage, both the number of hectares and the
severity of damage appeared to be significantly less for the2009-10 season in comparison to previous years. This would
indicate that the awareness campaigns and messages of responsible spray application seem to be getting through to
users of Phenoxy herbicides.
It needs to be acknowledged, however, that for some regionsand individual growers there hasn’t been enough improvement,
as spray drift and significant crop damage did occur again duringthe season. Growers in the Lower Namoi Valley continue to be
frustrated by what appears to be a small number of applicatorswho repeatedly show little regard for label instructions,
responsible spray application and managing any adverse
impacts on neighbours.
Cotton Australia will continue to focus resources on this issue
to help defend the interests of growers and advocate for tougheraction by the authorities for those who blatantly offend.
COMMUNICATION AND ENGAGEMENT
24 COTTON AUSTRALIA COTTON AUSTRALIA 25
Cotton Australia’s phenoxy herbicide campaign helpedreduce severity and incidence of drift onto cotton
in the 2009-10 season
CAMPAIGN TO REDUCE PHENOXY HERBICIDE DAMAGE
GOALS OF THE 2009-13STRATEGIC PLAN
1. E stablish, implement and maintain a fresh
communication strategy to re- engage
growers
and industry regarding Cotton
Australia as a new entity
2. Be a respected and valued national peak
body effectively representing the interests
of the Australian cotton growing community
3. E stablish two way communication loop via
Member’s Forum and increase the cotton
growing culture of cooperation
PORTFOLIO FOUR
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SELLING AUSSIECOTTON TOTHE WORLD
In early March 2010 Cotton Australia
joined a delegation of Australian
cotton industry representatives toIndonesia, Thailand and Singapore to
promote Australian cotton to bothestablished and potential buyers.
The trip was carried out as part of the Austrade supported Export Market
Development Grant Scheme (EMDG).
A number of well-attended seminarswere held to reposition the Australian
cotton industry following a period of sustained drought and to re-establish
its credentials as world leaders in
productivity, yield, water use efficiency,quality and environmental stewardship.
Feedback from over 120 participantswas extremely positive, particularly with
regards to Australia being able to delivera high quality, environmentally sound
product as compared to that delivered by
the organic cotton industry. The groupalso attended the International Cotton
Association Conference in Singapore inrecognition of Asia now being at the
heart of world cotton business.
2009 INTERNATIONAL YEAR OF NATURALFIBRES
Cotton Australia teamed up with
Australian Wool Innovation to
celebrate the 2009 International Year of Natural Fibres at a launch
in Sydney in May. Attended by Australia's Minister for Agriculture,
Fisheries and Forestry the Hon. TonyBurke and Director-General of the
United Nations Food and Agriculture
Organization Dr Jacques Diouf, the eventpaid tribute to Australia’s wool and cotton
producers, highlighting their worldleadership status in innovation and
productivity.
The aim of the International Year of Natural Fibres was to raise the profile of
natural fibre products around the world,to emphasise their value in fighting
hunger and poverty and to overalleconomic growth.
During the launch, the Australian
Government made a commitment tocontinue to work with the cotton industry
to raise awareness of the importance of sustainably produced natural fibres and
to promote demand for Australianproduce.
MEMBERSHIPS AT WORK
Cotton Australia has maintained its
memberships of the National
Farmers Federation, NSW IrrigatorsCouncil and Queensland Farmers
Federation. The organisation leveragesthese memberships to influence
government policy and decision makingon key issues for growers. During the
year, these included:
• National water reform and the draft
Murray-Darling Basin Plan
• Carbo n Pollution Reduction Scheme
• Feder al Pastoral Award
• Fl ood plain harvesting in NSW
• Coal seam gas exploration inQueensland
Joanne Grainger is Cotton Australia’s
representative on the NFF Policy Council,with Gwydir grower David Robinson
“a member of the Water Committee.Director Andrew Watson is Cotton
Australia’s representative on the NSWIrrigators Council, and Chair Joanne
Grainger fills the important role as Vice-President of the QFF.
26 COTTON AUSTRALIA COTTON AUSTRALIA 27
A new tagline, “Advancing Australian Cotton” as promotedalongside the Cotton Australialogo throughout the year
PROMOTINGTHE COTTON AUSTRALIA BRAND
The Cotton Australia logo and brand
has stood the test of time and has
now been in existence for over30 years. Following a merger with the
Australian Cotton Growers Research Association in 2009, a project was
implemented to create and communicatea new visual identity and brand for the
organisation. “Advancing Australian
Cotton” was introduced as a taglinethat has been used across printed
materials and has been added tothe logo and other corporate
communication tools.
A set of templates carrying this brand,and a series of brochures explaining
various aspects of the new organisation’srole and functions were produced and
distributed to industry. The Cotton Australia website was also updated,
with new sections explaining theresearch and other new functions of the
organisation. Positioning of the Cotton
Australia brand and its associated keymessages with target audiences will
continue to be a focus of Cotton Australia in the coming year.
GROWER ANDINDUSTRY COMMUNICATION
Keeping growers and industry
abreast of Cotton Australia issues
and activities is a critical functionof the organisation. This was achieved
during the year through sustainedcommunication using a number of
methods:
• Fortnightly e-newsletter to update
industry on Cotton Australia activityand issues that impact on growers
• A series of technical Background
Briefing documents to provide
in-depth analysis of issues such asClimate Change, the Carbon Pollution
Reduction Scheme, Water in theMurray-Darling, Phenoxy Herbicides
and Cotton Workplace Award
• Cotton Communiqués to
communicate urgent informationto growers, for example Mealybug
Outbreak and shortage of Pegasus and Admiral
• New website sections includingtransport, Phenoxy herbicides and
research and development
• Local media campaigns
• Direct communication with growers
through General Meetings andattendance at Cotton Grower
Association meetings
INTERNATIONAL COTTON ADVISORY COMMITTEEMEETING – CAPE TOWN
Cotton Australia attended the
International Cotton Advisory
Committee (ICAC) 68th PlenaryMeeting in Cape Town, South Africa,
along with a group of Australiancotton industry and Government
representatives in September 2009. This was part of Cotton Australia’s re-
engagement with the global cotton
industry, following a period of limitedinteraction due to budget constraints.
Key messages from the meeting included:
• The forecast of a modest increase
in cotton consumption following a yearwhere consumption fell 12%, the
largest year-to-year percentage declinesince at least the 1920s, a direct result
of the global financial crisis
• The reaffirmation of the urgent
necessity for an ambitious andbalanced conclusion to the Doha
Round of trade talks with a focus onassisting developing countries
• A report that more than 80% of worldcotton production had received
government support (subsidies) in2008/09, with the value of this support
more than doubling to approximatelyUS$6 billion
There was also much discussion
regarding organic cotton, with a numberof African nations reporting that yields for
organic cotton were lower and not asprofitable as conventionally grown cotton.
Cotton Australia’s Rob Cairns joinedmembers of the Australian Cotton Shippers
Association on a tour to key customers insouth-east Asia
Australia’s delegation at the ICACmeeting in Cape Town
Promoting the cottonmap website formedthe basis for one grower communicationcampaign during the year.
The wool and cotton industries workedtogether to launch the 2009 International
Year of Natural Fibres in Sydney
NSW Irrigators Council General Meeting,of which Cotton Australia is a member