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In the last 10 years the introduction of transgenic cotton and IPM has resulted in a 80% reduction in pesticide use which has had a positive effect on biodiversity in and around cotton.
Rural communities around NSW continue to suffer due to drought. The Cotton Catchments Communities CRC today released a drought study revealing that small businesses have seen a decrease in gross turnover of over 50% since 2001.
The focus of the study was businesses in Wee Waa, a small county town of 2000 situated on the Namoi River floodplains in North West NSW.
The gross turnover of the businesses surveyed has fallen from $116 million six years ago to $56 million in the last financial year. Like many rural communities, 95% of local businesses in Wee Waa said they rely on a healthy agricultural and cotton industry.
As a consequence of the drop in local business turnover, the wider impacts on the community have been significant. This has lead to job losses of both permanent and casual positions with casual employment suffering a 40% reduction.
As a result of the job losses, two thirds of these employees have left the region, contributing to a 21% decline in student enrolments at local schools.
Dr Paula Jones, Cotton CRC, Communities Program Leader said the impact of the drought has been felt by many sectors of the community including local businesses, schools and health organisations.
“There is no doubt that the drought has had a dramatic effect on Wee Waa and the small business community, yet they are also showing a strong resilience and are positively planning towards the future”, said Dr Jones
To combat the reduction in income, business are looking at ways to improve cash flow by reducing expenditure and stock, maintaining good communication with their bank and where possible looking at opportunities to diversify their businesses.
Of those business surveyed, 80% said they would return to pre-drought staffing levels once the drought broke.
The Impact of Drought on Small Business – A Pilot study on Wee Waa - Cotton CRC Information sheet summary
For more information or photos please contact Dr Paula Jones on 02 6799 2440 or 0427 992 440
