PLANS for the development of a cotton gin in the Ord River Irrigation Area have been given a boost, after the business case received a $100,000 State government grant.
The Value Add Agribusiness Investment Attraction Fund grant will be used towards the development and governance arrangements for a local cotton gin in the East Kimberley, which separates and cleans picked cotton into lint and cotton seed.
The announcement is on the back of extensive cotton production trials which have yielded positive results in the region over the past four years.
Ord River District Co-operative (ORDCO) chief executive officer David Cross said there was growing optimism for a commercial cotton industry in the region.
"From what we've seen over the past four years of comprehensive trial work, there is a level of confidence around the production piece," Mr Cross told Farm Weekly.
"Between six growers, we have roughly a thousand hectares of cotton under production and the project is drawing interest from other growers within the region."
An expression of interest call made to other local farmers and industry stakeholders to join the project drew 13 additional interested parties into the fold, all seeking to explore the opportunity further.
With Western Australia's cotton required to be trucked to Queensland in order to be processed, Mr Cross said there was a ceiling on how much cotton could be produced and freighted.
"We are certainly still learning, but in order to progress the cotton industry there needs to be that local post-harvest processing capability which will enable us to create a better profit margin," Mr Cross said.
While the vast majority of cotton lint produced in Australia is exported, the cotton seed component, which is a high protein oil seed, has value locally as a stock feed in WA's northern pastoral market.
In the East Kimberley sowing of the cotton crops takes place between January and March, with the crops picked mid-year to coincide with the favourable dry season conditions.
The proposed framework for ownership and management of a cotton ginnery in the East Kimberley has been set out in a memorandum of understanding (MoU) between ORDCO, Kimberley Agricultural Investment and MG Corporation.
"The overall expansion of the cotton industry for everything from production, processing and post processing has the potential to be a big driver for economic growth in the North West," Mr Cross said.
WA Agriculture and Regional Development Minister Alannah MacTiernan agreed that the project has the potential to deliver strong economic and jobs growth to the region.
"Our government recognises that without local processing of cotton we won't have a viable cotton industry," Ms MacTiernan said.
"We commend the East Kimberley groups involved in reaching an MoU, which brings together Ord growers and traditional owners in striving towards a local cotton gin."
