Cotton’s unique challenges
08/12/2008
Gary Adams, vice-president of economic and policy analysis for the US National Cotton Council, has said that cotton production for 2008 will be slightly up on the year before, and China’s down only a little, but the production in his country, Brazil and Turkey will be substantially down on 2007.
Speaking at a conference called the Sourcing USA Summit, he pointed out that the price of cotton on commodities markets had fluctuated more this year than at any other time he could remember and that the outlook for 2009 appeared no more optimistic. In spite of lower production, he said there would still be ample supply and slow retail sales.
Mr Adams said tighter credit and higher production costs were affecting China’s cotton production too and, perhaps even more significantly, that the price of polyester in China was falling, which will make it even more difficult for cotton to maintain market share.
He said that the fact that cotton has to compete against other crops such as corn in the field and against other fibres such as polyester in the end market makes its situation uniquely challenging.
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