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.

The 2009–2010 year commenced with the ongoing presence of the longest drought on record impacting rural Australia and the cotton industry. The good news is that, on the back of above average winter rainfall and higher commodity prices, the reporting year has ended with a much improved outlook for 2010–11 and a welcome challenge in meeting the R&D needs of a resurgent industry with a mix of new, returning and continuing participants.

Strategic direction

For CRDC, the reporting year was the second directed by the Strategic R&D Plan 2008–2013 in the quest for sustainable competitive advantage for the Australian cotton industry. In keeping with this quest, a major achievement for industry was the development of an industry vision. With CRDC support, leaders in the Australian cotton industry recognised the potential for improving industry performance, organisational collaboration and capacity through development of a shared view of the future. A 20-year time frame was chosen in order to stretch thinking beyond the short-medium term and ensure a longer-term strategic focus. The shared vision is facilitating greater awareness of possible future challenges, critical uncertainties, and opportunities for the cotton industry and most importantly is enabling alignment of thinking, planning and actions. In achieving the vision of ‘Australian cotton, carefully grown, naturally world’s best’ the industry can position itself to deal proactively with foreseeable emerging challenges such as peak oil, competitiveness with food crops, bioidentical cotton substitutes and new yet to be identified issues. At the same time, CRDC’s portfolio of R&D investment during 2009–10 made progress with the strategic goals to add value to the Australian cotton industry with premium products in improved routes to market, engender highly productive farming systems with improved environmental performance and for an industry that has the human capacity to apply and adopt the technologies and knowledge in which it invests.

Value Chain

CRDC investment in value chain R&D has facilitated new industry connections and improved market intelligence about the opportunities for cotton mills, brand owners and consumers to achieve greater value from Australian cotton. This potential was successfully demonstrated through collaborative pilot projects with local brand owners to launch 100 per cent Australian cotton business shirts and towels showcasing the Australian cotton industry world’s best production practices and its unique fibre qualities, with the cotton traceable back to certified industry best management practice (BMP) growers, ginners and classers.

Farming Systems

R&D investments within farming systems have successfully targeted ongoing improvement in productivity growth, environmental performance and biosecurity. Cotton farming

systems continued to become significantly more complex in response to new operating conditions such as climate change, water availability and competitiveness with other crops. Evaluations highlighted the importance of industry R&D assistance in this response through yield and water use efficiency gains, as well as better measures of the industry’s environmental footprint.

Human Capacity

In 2009–10 the industry, with CRDC leadership, commenced the transformation of its approach to supporting the adoption of the technologies, practices and knowledge produced by R&D. A demand driven and commercial-like model is now in place, underpinned by the industry’s BMP program, which has been redeveloped into an online environment, myBMP, powered by the latest R&D. 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.

Outcomes

The CRDC is pleased to report on the results of the second year of the plan, 2009–10. The report highlights the outcomes of the Corporation’s investments in research, development and its application to enhancing the performance of the Australian cotton industry and community.

In recent years, a number of weeds have emerged as difficult-to-control in dryland cropping systems. The possible reasons for the appearance of these problems include changes in the farming systems, high reliance on glyphosate for fallow weed control, and species shift.

The cotton industry's Best Management Practices (BMPP) program was released in late 1997. An industry commitment was made to have 100 percent grower adoption of BMP by the 30th June 2001. To achieve this an implementation program was developed through the Cotton Research and Development Corporation (CRDC) and involved both the former CRC for Sustainable Cotton Production and Cotton Australia. Growers received a copy of the BMP manual and attended training workshops Since that time the implementation program has developed and expanded in response to the ever changing needs of growers. With the adoption target now less than 12 months away and release of the second edition of the' BMP Manual imminent, how close are we to meeting this commitment and what have we learned in the processΓ

A water management approach commonly used by cotton growers in the Condamine - Lower Balonne catchment area is to divide farm storages into several cells. The strategy aims to reduce evaporative losses by minimising surface area for a given total volume. Cells are nominally 4 in high with a 3 in water depth. Water losses are further reduced by having cells of various sizes, so that water can be stored in the combination of cells that best minimises surface area. Cotton growers face a move towards deeper cells. Current storages can be deepened, but at a cost, or any new storages can be built for a greater depth. Through the use of computer modelling techniques, we have aimed to quantity the impact of water storage depth on cotton production in the study area. It explores the efficacy of different water management practices on increasing cotton production or decreasing water lost due to evaporation. This study explains some of the factors involved so that better decisions can be made regarding water management.

Water Use Efficiency WUE) means maximising the returns from and minimising the environmental impacts of every megalitre (ML) of water used for irrigation purposes. Improved WUE therefore can result in a range of outcomes including reducing overall water usage, growing more hectares, producing higher yields and/or better quality produce and reducing any negative impacts that may be occurring through excessive drainage, poor water quality etc. Failing to measure and manage WUE at the farm and field level can compromise the economic and environmental sustainability of irrigated fanning.

Fusarium wilt of cotton, which is caused by Fusarium oxysporum f.sp vasinfectum (Fov) is a relatively new disease in Australia. The devastating nature of the disease and the lack of effective control measures are causing serious concern in the industry. There are now only four Australian cotton-growing areas that have not yet recorded the disease. The Australian Cotton Industry is making a concerted effort to minimise further spread of Fov. The different measures include keeping farm machinery and vehicles free from crop debris and soil, retaining irrigation run-off water on the farm and avoiding spillage of cotton during transport from the farm the processing facility. Any stress on the plant, for example water logging, appear to exacerbate the disease. There are no cotton varieties in Australia with complete resistance to Fusarium wilt. The varieties are usually divided into three susceptibility groups- least, moderately and most susceptible. Even the least susceptible varieties appear to be very susceptible in the seedling stage. The current recommendations for managing the disease include using the least susceptible varieties, retention of crop residues on the surface for as long as possible after harvest, increased seed rate by up to 30%, control of weeds that host the pathogen and farm hygiene. The use of bio control agents is another tactic that can be included in this package.

A comprehensive testing program of conventional large mixed flow pumps typically used on cotton irrigation farms has found that these pumps, if correctly tuned, can operate at high efficiency levels with reduced energy costs and lower carbon emissions. This fact sheet outlines the findings of the testing from NCEA.

This benchmarking report presents direct energy data (diesel and electricity use) collected on irrigated Australian cotton farms. The outcomes from this benchmarking study clearly highlight that there are opportunities for growers to identify practices where energy consumption is high, and implement strategies to reduce direct energy use on farm.

Gin trash and mixtures of gin trash were composted using a minimum of equipment and labour inputs. Questions of cotton pathogens and synthetic chemical residues were addressed by lab testing pre- and post- composting. Guidelines were developed for overcoming practical problems with wetting the trash initially, handling the trash so that all was heat treated for long enough, determining the time to end composting, and how to use the compost