2009-10 CA Annual Report

8/6/2019 2009-10 CA Annual Report

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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



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.”



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




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




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




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%



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



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



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


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



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.


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.”



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


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


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



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.


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.”



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


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


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



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


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


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



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.


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

2009-10 CA Annual Report

Documents

Transcript of 2009-10 CA Annual Report