Cotton Crush investment creates value across the sector

28^th April, 2025

Cotton harvest is over in northern New South Wales, but Cargill’s upgraded cotton crush facility at Narrabri is just gearing up to meet the local demand. According to Dan Morgan, Cargill Director Oilseed Crush Commercial, cotton is more than the shirt on your back – the seed has a much bigger story to tell. In fact, about fifty per cent of what is harvested from the field is the cotton seed, which is highly regarded as a valuable food and feed source. 

Cargill has invested AUD $100 million of new infrastructure and working capital to upgrade its crush facilities & oilseed refinery in Australia, including the canola crush facilities at Newcastle in New South Wales and Footscray in Victoria and the cotton crush facility in Narrabri, central New South Wales. It is a welcome investment in Australian agriculture

The Narrabri facility separates the outer shell (called the hull) of the cottonseed from the ‘meat’ which is in the middle portion of the seed. The meat is then sent to the Newcastle facility where it is further processed into human grade cooking oil and a high protein meal The oil is a high-quality frying oil that is commonly used across Australia’s favourite pubs, clubs and restaurants due to the lightness of its taste, texture and frying capabilities. Cottonseed oil remains stable at high temperatures in a frying situation, creating a long-lasting oil that gives food a very crunchy texture (for example fish and chips) that we all love.

Cottonseed meal is a high protein meal that is used within cattle and chicken production and is an alternative to imported commodities such as copra (coconut) meal and soybean meal. For cattle, it is used extensively in grazing situations where tall, dry feed is hard for cattle to digest and often missing vital nutrients that cattle require to be in their best possible condition. Cottonseed meal is an ingredient to supplement products (such as lick blocks and loose licks) that help cattle make the best use of the dry feed and convert that to energy while providing other vital nutrients that might be deficient in the feed.

For livestock, cotton seed hulls are a great source of fibre, and is proving popular in the feedlot industry as a substitute for straw, especially in the north of Australia. One of the major benefits of the investment in the Narrabri crush facility, is that it ensures local customers, are getting local products, produced by local farmers and supporting local communities. Where once the cotton seed was exported to be processed and then reimported to Australia, now the onshore processing is generating new opportunities and supporting the local economy. 

 “The cotton products, the hull, the oil and the protein meal are highly sought after by customers. The domestic manufacture of these products is providing an alternative to imported products, delivering benefits for the local and national economy.” Dan Morgan said. “Customers are rightly excited for us to be back processing cotton seed.” The facility is well received by the local Narrabri community and local farming sector, producing demand for their products and providing local jobs.

The success of the facility further generates the case to invest in the agriculture sector. 
One of Cargill’s strength is our work with customers right across the value chain, from farmers, to processes to end consumers, providing a highly nutritious food and feed product. The cotton sector touches so many, and Cargill is proud to be part of the end-to-end supply chain and creating value.”

 

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