Cotton has been grown on a commercial basis in the Top End for about three years - with the Katherine gin capable of expanding, it is possible for growth to continue.

"The way the gin has been designed is modular. As the industry grows, the gin can potentially grow. Whilst we're building a gin that is suitable for us today and now, that will have the capacity to expand as the industry expands," NT Farmers CEO Paul Burke said.

But, the growth of cotton has others in communities, including those in Katherine, concerned about the other flourishing industries across the Territory.

"They talk about the Northern end being the food bowl of Australia but you can't eat cotton. Cows might eat cotton seed but people don't eat cotton seed," Katherine resident Shirely Crane said.

"We're going to end up losing the industries who have sustained us for the last 150 years. The rivers can only tolerate so much water being taken out. Our food production here is going to go over to cotton."

Environment Centre NT ecologist Jason Fowler is also concerned about the size of the industry's growth.

"How big do they want to make it? What does this mean for the river systems where they're grown? When does it stop?," he questioned.

For years, Territory farmers have been transporting cotton bales thousands of kilometres to gins in south-east Queensland, resulting in significant financial loss. But costs and time will be saved with a gin in operation at Katherine.

Northern Gin Development Group chairman David Connolly said the gin will be another sector of employment that will grow alongside the expansion of the industry.

"It's all about employment and prosperity for the Northern Territory, all those things we've been talking about for quite some time," he said.

"This cotton gin will probably, indirectly, be responsible for employing four to five hundred people. Directly in the cotton gin, it won't be so many but the trickle down effect of the gin and cotton industry is going to be immeasurable."

However, Environment Centre NT ecologist Jason Fowler claimed the gin will not be a substantial employer.

"There's not a lot of jobs in this. It's the current station owners literally driving a tractor around a paddock to plant the crop and then you bring in contractors from over East because they're the expert on growing cotton," he said.

The gin will allow for reduced processing and freight costs as well as low post-picking costs, with Mr Burke hopeful other growers will join the cotton scene.

"We would like to get to the stage where we have a viable gin and an established supply chain, and an opportunity for people to enter the industry and make some money on their properties," he said.

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