Australia’s cotton industry has been part of the national fabric for over 200 years. Grown in NSW and Queensland, cotton is the economic and social lifeblood of more than 50 rural communities. In a typical non-drought year, cotton makes an important social and economic contribution to the nation creating:
- Jobs for 10,000 Australians (including an average of eight jobs per cotton farm)
- Direct support to more than 4,000 businesses
- 1.5 billion for the national economy in export earnings
Cotton farms are generally family-run businesses that rely on water each season in order to survive. The typical Australian cotton farm is:
- Australian owned
- Family owned and operated
- Medium sized (an average 362 hectares of cotton)
- A mixed enterprise growing other commodities such as grain and livestock
In addition:
- In NSW, every 270 megalitres of water generates one full time job (Monitoring economic and social changes in NSW water sharing plan areas, Irrigators’ survey 2005-2006)
- Irrigation farms in some of the major cotton producing areas employ an average of two family members, full time (Monitoring economic and social changes in NSW water sharing plan areas, Irrigators’ survey 2005-2006)
- The irrigation sector accounts for 171,000 jobs in Australia. In addition there are an estimated 17,300 people classed as employers or business owners in the farm irrigation sector that would not otherwise own businesses in the absence of irrigation
- Irrigated agriculture contributes approximately 50 per cent of the total net returns to agriculture but only uses 0.5% of Australia’s farming area (Source: CSIRO, 2006)
Nowhere is the importance of water more keenly felt than in times of drought. Australia’s cotton communities, from the early 2000s up until the 2007/08 season have suffered the worst drought in living memory. Not only does this affect cotton production, but the flow-on effects into regional economies can be devastating, as the case studies below clearly show.
Case Study: Drought Impacts on a Cotton Community
A drought impact study of businesses in Wee Waa in 2007, compared to 2001 found:
- Permanent staff numbers fell 60% between 2004 and 2007
- Casual employment fell 40%
- 2/3 of employees who lost their jobs left the region
- 60% of businesses have downsized as a result of the drought
- 95% of businesses had a 60% or greater reliance on a healthy cotton industry
- Combined Wee Waa Primary and Secondary school numbers declined by a total of 128 students (21%)
For a full copy of this study please go to www.cottoncrc.org.au
Case Study: The Outback Town of Bourke
The inland NSW town of Bourke relies heavily on agriculture for its survival. Irrigation from the Barwon-Darling River provides jobs, investment and a degree of prosperity for many people in the Bourke region.
In 2000, agricultural consultants Hassall & Associates studied the Bourke economy and found that irrigated agriculture:
- generates over 700 full-time jobs in the Bourke district
- is responsible for 45% of total employment in the region
- contributes 70 million annually to the local Bourke economy
The same study also found that a 40% reduction in river water entitlements would:
- reduce annual cropping by 30%
- reduce annual agricultural output by more than million p.a.
- produce devastating flow-on effects to local businesses
- heighten social problems associated with unemployment
- force a drop in the capital value of farms along the river
