The Eco-System of Cotton
This week’s video was a difficult choice, considering there were so many options available. The eco-system of cotton is not an unusual one. It is being played out across the world through most industry sectors. Each industry sector and country has their own unique dynamics, this article is about one state in Australia, the Northern Territory and their entry into cotton farming.
The first place to begin is with economics and Australia’s balance of trade -which is the fiscal measure of exports and imports in a globalised world. Australia has a long history of exporting a range of natural resources to the rest of the world, consistent with Australia’s large natural resource endowment and relatively low domestic usage of these goods. Exports of iron ore, coal and LNG have become increasingly important which now account for around 75% of the value of Australia’s resource exports.
The agricultural sector has gradually become a smaller part of the Australian economy, accounting for around 10% of total export values in recent years. Meat and wheat exports are currently Australia’s predominant agricultural exports, while wool accounts for a much smaller share than it has historically.
So, why is this important? The mining industry is changing. The price of iron ore, the primary mineral to make steel is dropping as one major customer, China, is experiencing a cooling economy. More recently, BHP, the world’s largest mining company, announced they were suspending their Australian nickel mines due to the growth of cheap nickel from Indonesian mines. Indonesia went from historically supplying 6% of the world’s nickel to 53% currently.
Nickel is highly ductile, corrosion and oxidation resistant and 100% recyclable. These characteristics make it essential for building infrastructure, chemical production, communications, energy supply, environmental protection and food preparation.
As for imports, the decline in Australian manufacturing has meant fewer goods are assembled in Australia. A related consequence has been that imports of fully assembled goods have increased. These have included consumer goods — such as clothing and footwear, toys and household electrical items (like televisions and radios) — including capital goods. Capital goods are typically used for investment purposes and include items like specialised machinery, telecommunications equipment and computer hardware.
Cotton in the Northern Territory
The Northern Territory is located at the top end of Australia and occupies more than one-sixth of the Australian landmass. Its economic output is predominantly concentrated around a few industries. These include construction, government and community services and the mining sector.
Recently, there has been an expansion of cotton farms with the clearing of thousands of hectares of land. Currently, there are 12,982ha planted, including 575ha under irrigation. The Australian Broadcasting Commission (ABC) recently aired its investigation into the Northern Territory’s cotton farms.
According to the ABC’s report, they state the following
- Cotton farming is considered the next boom crop in the Northern Territory
- Water management is becoming a major issue for cotton farms, “growers are eyeing off the water, but access to it in the NT has been mired in secret deals and cosy relationships.”
- Eighteen of Australia’s water specialists from universities across the country appealed directly to the NT chief minister to stop licensing until a robust scientific evidence base was established and the NT could demonstrate it was adhering to national water policy.
- State government policy has changed. In 2018 the NT government lifted a ban on growing genetically modified crops, opening the farm gates to cotton. Over 99.5% of cotton grown in Australia is genetically modified.
- Land management and land rights are quite complex among Indigenous people, pastoralists, the mining industry and state and federal government agencies.
- Indigenous Australians, who are considered traditional owners of land, do not appear to have been consulted before activities such as land clearing on pastoral leases for cotton farming.
Note: I do not suggest regenerative farming is a solution to this complex issue of cotton farming in the Northern Territory although it adds to the sustainability of the cotton industry.
In a joint report published between the OCED and the FAO (UN Food and Agricultural Organisation) in 2021, world cotton production is projected to grow 1.5% p.a. to reach 28 Mt in 2030. This growth will come from an expansion of the cotton area (0.5% p.a.) and growth in average global yields (1% p.a.).
The Growth of Cotton
Over the past decades, global demand for textile fibres has grown strongly, but most of this demand has been met by synthetic fibres. Per capita consumption of non-cotton fibres overtook that of cotton in the early 1990s and has continued to grow strongly. By contrast, global per capita consumption of cotton fibres has increased little over time and has even decreased in recent years. The prospects for global cotton use depend on developments in developing and emerging economies.
Demand from developing regions with lower absolute levels of consumption but higher income responsiveness will put an upward trend on global demand as the incomes and population of these countries are projected to increase. As a result, the OECD-FAO report expects that global consumption of cotton products will grow at a slightly higher pace than the global population in the coming decade. Correspondingly, global mill use is projected to grow by around 1.5% p.a. over the outlook period.
A Sustainable Cotton Industry
Australia grows approximately 1 ~ 1.5 million tonnes of cotton per year. Australian lint yields often produce three times the world average yield. Australian cotton farmers use high-precision, mechanised techniques and are increasingly using best practices in water management to help conserve water resources. The Australian cotton industry association, Cotton Australia, partnered with Better Cotton to align itself with a cotton sustainability standard. The ‘my Best Management Practice’ (myBMP) Standard, with the Better Cotton Standard System, is the Australian cotton industry’s standard for growing cotton in an environmentally and ethically responsible way.
Better Cotton is a non-profit, multistakeholder governance group that promotes better standards in cotton farming and practices across 22 countries. As of 2023, Better Cotton accounts for 22% of global cotton production. However, Better Cotton production in Australia in recent years has decreased from 92,000 tonnes in the 2018–19 cotton season to 31,000 tonnes in 2019–20. Cotton Australia states they are committed to continuing to help farmers navigate the challenges of water scarcity.
Cotton as a Secondary Raw Material
Approximately, 25 million tons of cotton is grown annually. Recycled cotton had an estimated production volume of 300,000 tons in 2022, accounting for approximately 1% of total cotton production worldwide. Bangladesh, one of the major textile manufacturing hubs globally, generates around 330,000 tons of post-industrial cotton waste annually. Currently, only 5–7% of this waste is recycled into new fibre, leaving a huge opportunity untapped to close the loop and increase the recycling of this category of products, instead of downcycling it, incinerating it or sending it to landfill.
How many times can cotton be recycled? It depends on the particular process, but in general, cotton can retain its qualities through several recycling cycles. It is recommended, however, that it be paired with a carrier fibre to ensure the optimal quality and performance of the final product.
Conclusion
Most people have a cotton garment of some kind. The eco-system of cotton starts with a country’s economy and its viability as a crop that can provide a livelihood to farmers and a market to sell to. Here is where the politics begins and the balancing act between all the stakeholders pushing to ensure they can move their own agenda forward. The agreements between stakeholders can become strained, particularly with indigenous peoples. In a democratic society, politicians are particularly sensitive to election cycles usually, but not always, based on economic performance. Environmental concerns by the electorate are hotting up everywhere.
Then we have the practical mechanics of farming, clearing land, water management, the application of fertilisers, pesticides and harvesting. Yet, the mechanics of cotton farming are heavily reliant on the environment such as rainfall, sun and the quality of soil.
Added to the mix there are sustainability standards to meet and these standards will only get tougher as the climate becomes increasingly volatile and unpredictable. Now, we have no choice but to include resource management and the sunrise industries of a secondary raw materials market. For this market to grow requires changes in textile blends, the design of clothes, collection systems and for consumers to engage in more responsible disposal behaviours — all at scale.
Most people want to be part of a climate change, biodiversity loss and resource scarcity solution. But our messaging remains stuck in the past and there are not enough people aligned around a single circular economy message. There is a chasm between circular economy ‘purists’ and others who believe the Circular Rs will deliver zero waste.
Landowners in the Northern Territory are clearing thousands of hectares of land, using scarce water resources and disregarding Indigenous land rights. For one reason. To satisfy a growing demand for cotton while, at the same time, we are unable to manage the cotton in circulation in the market. We want to blame capitalism. When the truth is, that the human race has never respected the natural capital of any country.
We will not go to war over climate change. We will go to war over resource scarcity.
***************************
Ms Adrienna Zsakay is the Founder and CEO of Circular Economy Asia Inc, and this article represents her opinions on the circular economy. Circular World Video of the Week is brought to you by Circular World™ Media — a brand owned by Circular Economy Asia Inc.
For all the best content, join one of the fastest-growing circular economy groups on LinkedIn — Circular Economy Asia.
***************************
References
‘Trends in Australia’s Balance of Payments’ published by the Reserve Bank of Australia.
‘BHP to close Nickel West mines until 2027, blaming global oversupply of nickel’, by Gian De Poloni, Jon Daly and Nicolas Perpitch, published by ABC News, 11 July 2024.
‘The Importance of Nickel in Everyday Life’ published by Minerals Make Life, 04 August 2022.
‘Water Grab’ published by Four Corners, Australian Broadcasting Commission, 19 August 2024
‘Water management in the NT is in crisis — a fundamental overhaul is needed’ by Sue Jackson, published in The Guardian, 20 August 2024
Northern Territory from Encyclopedia Brittanica
‘Cotton Australia refutes Four Corners’ claims over NT water’ by Liz Wells, published in BeefCentral.com
Northern Territory from Encyclopedia Brittanica
‘ Cotton Australia refutes Four Corners ‘ claims over NT water’ by Liz Wells, published in BeefCentral.com
Chapter 10: Cotton, published by the OECD-FAO Agricultural Outlook 2021–2030.
Australian Government 2022 Report to the International Cotton Advisory Committee Prepared by the Department of Agriculture, Fisheries and Forestry
Chapter 10: Cotton, published by the OECD-FAO Agricultural Outlook 2021–2030.
Australian Government 2022 Report to the International Cotton Advisory Committee Prepared by the Department of Agriculture, Fisheries and Forestry
Better Cotton Initiative — Wikipedia
Better Cotton in Australia (myBMP) published by Better Cotton
‘What is Recycled Cotton and Why Does it Matter?’, published by Recover Fibre, 22 February 2024.
Originally published at https://www.linkedin.com.