Julia Creek has firmed as the likely location for a cotton gin in North Queensland.
McKinlay Shire Council confirmed it is in discussions with potential operators and is in the process of obtaining land.
Australia's biggest ginner Namoi Cotton revealed last year that it was considering expanding its Queensland footprint and building a gin to reduce the transport burden on the development of the northern industry.
Namoi Cotton account manager Nathan Hunter told FNQ Sustainable Cropping Group forum in Mareeba recently that the project was now focused on potentially building two gins; one in the Flinders catchment and another further north around Burdekin, Atherton or Mareeba.
They intend to have one of the locations operational by 2025 or 2026.
McKinlay Shire Council Mayor Phillip Curr said commercial discussions were underway between growers and ginners.
"It will be a game-changer for the shire and the region having far-reaching diversified, economical benefits," he said.
Mr Hunter was tasked with assessing the feasibility of a North Queensland gin and recommended production would need to increase to 100,000 bales.
"What that would mean is that we would probably need to see at least a two-fold increase in production in cotton above the Flinders Highway over the coming years," he said.
"We think there is production potential in the west in the medium-to-mid term. In the longer term, there is potential for a second gin in the east and north.
"That is something that is going to be dictated by the production that we see over the coming years."
Consistent and reliable power was the other crucial element required to successfully establish a gin in the north west and they were in talks with Ergon Energy.
"We're looking at Julia Creek for that western area and we're looking at Hughenden as a backstop if there is no power available out there," he said.
"We're in consultation with these various levels of government to understand the land proposition.
"You need 100-hectares ideally of free hold land to construct a gin site inclusive of module yards, the gin building and a cotton seed shed."
Mayor Curr said the council was confident an operational gin would come to fruition in the local region in the short to medium term.
"There is already one property growing cotton and is just about to harvest a second crop," he said.
"A couple of large pastoral companies in the area are contemplating cotton moving forward.
"The council is excited about the benefits of the cotton industry to the region."
Namoi Cotton still intends to operate the gin as a co-operative with local growers.
"It gives growers control over their own destiny to some degree, but also gives us confidence that there is going to be long term, sustainable supply, or the grower is committed to the longevity of the industry," Mr Hunter said.
"Once we work out what the ideal land and power situation is through this consultation process; then we will be seeking expressions of interest from growers on whether they'd like to be party to the investment."
Zoe Thomas
Northern based journalist at North Queensland Register and Queensland Country Life.
Northern based journalist at North Queensland Register and Queensland Country Life.
