Graziers Struggle to Stockpile Cattle Feed Amid Drought Concerns

Graziers preparing for drought are struggling to stock up on a popular cattle feed, as worsening conditions slow down production.

Cottonseed is a by-product of the cotton ginning process, where lint is separated from seeds before being cleaned and spun into fibre.

High in fibre and protein, the seeds are a popular addition to livestock diets, especially when feed quality and availability are low.

But as cattle producers seek to secure supply to get them through a dry winter, cotton growers managing their own tough conditions are selling more slowly.

Traders are assuring farmers there's enough to go around this season, but the outlook for next year is less certain.

Filling the gaps

For James Geraghty, a dairy farmer in Far North Queensland, cottonseed is usually a staple ration for his herd.

"Cotton is our go-to to fill in feed gaps," he said.

The nearest cotton gin to his Atherton Tableland farm is at Emerald in central Queensland, about 1,000 kilometres to the south.

Amid skyrocketing freight prices and the looming threat of a forecast El Niño weather pattern, cottonseed has been harder to find and more expensive when he can.

"The seed is $100 a tonne dearer than it was last year, the freight is considerably dearer than it was last year because of the price of diesel," he said.

"All in all, it's just making it tough."

Cotton picking across most of Australia started in April, but supply has been slow as growers managed their own seasonal conditions.

Luke Murphy manages the cottonseed and grains trading team at Queensland Cotton, which operates six gins on the east coast.

He said crop forecasts indicated there would be enough supply to meet domestic demand eventually.

"It's probably just a factor of the pace of the [cotton] farmer selling hasn't quite been there versus the pace of the demand that we're seeing."

In response, prices have surged, with Moree cottonseed trading between $590 to $600 a tonne ex-gin, up as much as $70 a tonne in the past month.

Mr Murphy said the bigger concern was next year, with forecasts suggesting the national cotton crop could be down as much as a third of current production.

"Farmers [are] concerned about what access they're going to have to water and the cost of water to grow the cotton crop for next year," he said.

Combined with "massive growth" in demand from the cattle feedlot sector, that could lead to shortages.

"We would be looking at a pretty tight situation in terms of supply and demand going into 2027," he said.

Nutritional powerhouse

Consulting livestock nutritionist Robert Lawrence said demand for cottonseed was unlikely to slow down, because it provided fibre, protein and energy from one source.

He said it was especially valuable during dry periods because it reduces the need for roughage — such as grass, hay and silage — which can become difficult to source during drought.

"A kilogram of cottonseed will meet about 20 per cent of the maintenance energy of a dry cow [not producing milk]," he said.

"That's 20 per cent of feed they don't have to eat out of the pasture."

Ahead of the potential drought, he said clients across the country were trying to boost the percentage of cottonseed in their feed supply, but have not been able to sustain it.

"It's easy to shift, easy to store, doesn't need any processing, super consistent, and cattle like eating it — it's a great feed."