The 2008–2009 year was the first directed by the CRDC Strategic R&D Plan 2008–2013.The five years of R&D investment under the previous R&D Plan were conducted entirely under the influence of the longest and increasingly severe drought on record. In retrospect, though, it is clear that these harsh conditions brought their own opportunities to institute R&D-driven adaptations and improvements that will forge a future for the industry, based on a new sustainable competitive advantage, which is distinctly different but perhaps equally bright.

Challenging Times

During the period of the previous plan, 2003–2008, cotton farming systems became significantly more complex because of the need to respond to new operating conditions such as climate change, water availability and the boom in soft commodities (other crops).While total production waned, the industry achieved remarkable productivity growth, with yield gains totalling 25 per cent. Farms are now typically more energy efficient, using finely tuned management and agronomic decisions that derive increasingly greater efficiency of water use under irrigation or rain- fed (dryland) systems. Best practice across a farm is now more likely to include varying row spaces, annual irrigation practices and crop agronomy throughout the season in response to changing water allocations, seasonal rainfall and the market prices for cotton relative to other crops on the farm. Best practice also commenced an evolution to extend beyond environmental performance to assure the high quality of Australian cotton throughout the industry supply chain.

Lower production

Historically low cotton production over the period also meant a large reduction in the funds CRDC has had to invest in R&D over the past several years, inhibiting the capacity to meet the growing R&D needs. Despite this, prudent management by CRDC has ensured core R&D capacity was retained, while at the same time the Corporation met the financial challenges by improving the efficiency and effectiveness of its operations.

The reporting year saw the first signs of a recovery in the area planted to cotton across the industry.The accumulated impact of persistent drought across the regions where Australia’s cotton is grown resulted in the 2007–08 cotton crop being the smallest in

over 30 years. Improved rainfall during the 2008-09 season saw the planted area bounce back to 160,000 hectares.While that was still less than half pre-drought levels, yields of irrigated and dryland crops continued to trend upwards in all districts.This recovery in area planted, together with continued improvements in productivity, serve to highlight the great resilience and adaptive capacity that underpins the Australian industry as it prepares for the new challenges of climate change.

New Strategic Plan

Under the new Strategic Plan, a three-part R&D strategy strategically addresses future cotton farming systems, a responsive value-chain beyond the farm gate that delivers greater value to industry participants and an industry that has the human capacity to apply and adopt the technologies and knowledge in which it invests. Human Capacity aiding adoption CRDC’s attention has also turned to how R&D outputs of new technologies, practices and knowledge could be better delivered, and through which channels, as key considerations in maximising the effectiveness of future R&D investments. In 2008–09 a stronger emphasis was placed on thedevelopment of human capacity to better facilitate R&D adoption. Improving education, professional development and training raises the skills necessary to achieve this. CRDC invested in industry participation in skills-related processes, particularly by young people, women and cotton communities (including indigenous members of those communities). Skills development is an important element of a strategy that seeks to result in attraction, retention and development of the best and brightest for our agricultural sector and, in particular, cotton production.

Value Chain

CRDC investment in value-chain R&D during 2008–09 was principally for the outcome of better intelligence on cotton-mill and market needs. New conversations, leading to a shared and greater understanding throughout the industry of its value-chain, are vital early steps in facilitating the application of R&D innovations in creating greater value to stakeholders. The opportunity to conduct R&D with international spinning mills and brand owners in demonstrating the value of the Australian cotton industry world’s best production practices, its unique fibre qualities and R&D technologies is now widely recognised.

Farming Systems

R&D investments in 2008–09 within farming systems have successfully targeted the need for continuous improvement in productivity growth, environmental performance and biosecurity. A background of global financial crisis, water scarcity, climate change and increasing concerns for food and fibre security has placed rising importance on the outcomes of R&D in meeting industry, community and national challenges. Collaboration has grown in recognition of these linkages and benefits in developing integrated R&D responses.

Outcomes

The results of this first year of the plan, 2008–09, have been both concrete and promising, from the exciting development of new technologies, practices and knowledge gained, to capacity built through new alliances and more skilled people.Throughout, the partnership in R&D between the Australian cotton industry and Australian Government has underpinned the capacity of the cotton industry and its communities to adapt to the ongoing environment of change with optimism.