The cotton gin near Katherine in the Northern Territory began processing its first bales last week with expectations the last of the 2023 crop should be processed by the end of June.

Tipperary Station’s David Connolly said the Gin was operating well and has the potential to process 1000 bales of cotton a day, as it begins to work through the 2023 modules stored on the Gin site, north of Katherine.

The Gin is operated in a joint venture between WANT cotton and LDC and is expected to employ around 15 people directly per shift with two shifts possible per day. In all around 38 people are expected to work on site each day with maintenance personnel in addition to the shift operational staff.

The vast majority of Australian cotton is sold offshore, and it’s believed merchants will direct the NT Cotton through the Ports of Brisbane and Adelaide with Darwin also readying to export bales from the NT.

Transport operators are also enjoying the new development with growers able to send their modules direct to Katherine from the NT and WA and then truck operators are able to deliver the bales to ports. Farming supplies also need to be delivered to growers all over the Territory.

The first bale of cotton processed was from Tipperary station with observers saying the 2023 crop will be in demand because of its high quality, and clean and white appearance.

Cotton seed is also in demand with Tipperary Station able to take as much seed as possible through the ginning process while cotton growers will have the ability to retain their own seed for cattle feed, if required. Other cattle growers and associated feed industries will be able to purchase seed directly from the Gin.

Mr Connolly said the ACCC’s Statement of Issues, released recently around LDC’s proposed acquisition of Namoi Cotton, will not in any way affect the operator’s ability to continue the operation of the gin in 2024, with expectations the agreement will continue into the future.