Review of proposed expansion of the cotton industry in the Northern Territory

This analysis examines three main claims by proponents of an expanded cotton industry in the Northern Territory, that it:

• is a highly profitable crop,
• will create many jobs and economic benefits, and
• is grown primarily for cotton seed.

The analysis, prepared by industry experts Slattery & Johnson, found that the only way that cotton will be profitable in the Territory is through irrigation which will permanently damage the Territory’s free-flowing rivers and savannas.

Key findings:

• The Australian and Northern Territory governments are subsidising the industry by $42 million per year, as it is not financially viable with private investment alone.
• Industry dryland cotton in Northern Australia makes an estimated loss of $812 per hectare. To achieve industry forecast gross revenue and make a profit, the amount of irrigated cotton will need to be double the area currently claimed.
• There is no basis to industry claims that the primary motivation for cotton being grown in the NT is to produce cotton seed for cattle.