Supermarket shelves could be stocked with mushrooms grown from the Northern Territory’s cotton waste, with a Charles Darwin University (CDU) research project exploring the possibility of broadening the region’s agricultural industry.

The project, led by PhD candidate Waseem Ahmed from CDU’s Research Institute for Northern Agriculture (RINA), aims to create a circular economy by using cotton crop waste to grow mushrooms.

Cotton crop production in the Northern Territory has expanded to more than 10,000ha and is anticipated to reach 15,000ha in the next few years.

This process of using cotton waste – known as cotton trash – is the first of its kind in Australia, with sugarcane and wheat crop waste being the most used byproducts for growth.

Australian mushroom production is estimated to be annually around 65,000 tons, on top of importing about 5000 tons of mushrooms a year.

Waseem, who began this project in 2024, says the process has fallen into three stages: to assess the viability of using cotton trash to grow mushrooms, to develop successful recipes using cotton trash and other waste, and conduct an economic analysis on the potential of the industry.

The second stage, which includes growth trials and nutrition analysis, is scheduled to be completed by the end of the year.

Waseem has successfully grown oyster mushrooms using cotton waste, with the testing and experiments conducted at NT Department of Agriculture and Fisheries’ Berrimah Farm Laboratories.

“Cotton is proposed to be a cornerstone crop here in Northern Territory,” Waseem says.

“We have excess of cotton trash. It’s nutrient dense and we can efficiently and strategically use it to build an industry,” he says.

“The Northern Territory currently generates 2500 to 3000 tons of cotton waste each year, and when the agri-waste is supplemented properly, has the potential to produce 600-700kg of mushrooms per ton.

“This is not a $1 million, $2 million industry. This is a $100 million industry we have here.

“We have the major and minor ingredients; we have the supplements – all which can produce a good yield.”

Waseem says while the NT’s estimated consumption of mushrooms is around 250 tons, the project posed an opportunity for export.

He says the research indicates the project can be scaled up from the lab with immense economic and environmental benefits for the Northern Territory.

Adding this approach has the potential not only to create a healthy food source from local agri-waste but also to contribute to diversifying and strengthening the Territory’s economy.

“A circular economy approach helps to protect the environment, creates more jobs, and gives us an opportunity to use the waste, search out the benefits and recycle it again with a new approach for the betterment of society and economy,” Waseem says.

“We are going through the stage where we need more food. Our population is increasing day by day, and our resources are the same. By using the circular economy approach, we produce more, we can save more and create a sustainable system.”

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Monday, 13th April 2026

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