CCI: Cotton will still maintain its advantages

Jimmy Webb, President of the American Cotton Association (CCI), recently received an interview with Fibre2Fashion reporter about the US cotton industry situation and the challenges faced by global cotton production.

Supply and demand

According to the forecast of the US Department of Agriculture (USDA) in June, global cotton production in 2011/12 was 26.914 million tons, consumption was 23.102 million tons, import volume was 9.461 million tons, export volume was 9.466 million tons, and the ending inventory was 14.667 million. Ton. Among them, the US cotton production in 2011/12 will reach 3.394 million tons, the export volume will be 2.529 million tons, the domestic consumption will be about 741,000 tons, and the ending stock will be about 698,000 tons. In 2012, the US imported cotton textile equivalent to 4.786 million tons of cotton bales. Imported products account for the vast majority of the domestic consumer market in the United States, and a large portion of them use US cotton.

Competition from other fibers

In addition to cotton prices, man-made fibers have always been an important factor affecting global cotton production. However, it is expected that in the retail market in 2012, cotton will still account for about 40% of the market. Due to consumers' preference for natural fibers, cotton still maintains its unique competitive advantage. According to the GlobalLifestyleMonitor(TM) survey, 58% of consumers are willing to spend more money on clothes made of natural fibers such as cotton; about half of the consumers surveyed around the world People believe that garments made from 100% natural fibers (such as cotton) are of better quality.

Traditional cotton and organic cotton

First of all, it should be recognized that traditional cotton and organic cotton have more than one difference in the actual production process. When it comes to traditional or organic, it refers to the different cultivation methods of the two, regardless of quality. The global organic cotton production is now less than 1% of the total cotton output. The cotton market is still dominated by traditional cotton. The more sustainable agricultural products, the more they need to be obtained from the three elements of economic growth, environmental protection, and social responsibility. balance. The traditional cotton or organic cotton in the United States follows this rule to achieve sustainable development.

Textile mills, branded companies, retailers, and consumers using American cotton can all believe that the US cotton industry has always supported the sustainability of agricultural production and relentlessly pursued the goals of environmental protection, economy, health, and social responsibility. Cotton has always been recognized as the most environmentally friendly fine fiber, and it is also recognized as the most comfortable fiber.

Factors affecting the market

The cotton price has stabilized and stayed above the turbulence since the high of March 2011. This has a positive effect on cotton planting intentions and ensures that there are enough cotton in the supply chain to avoid one year The former tight supply situation is repeated again.

Another potential impact on the global cotton market is China’s management of cotton reserves. The Chinese government has already purchased 3.13 million tons of reserve cotton to support the cotton prices of its own cotton farmers, which will effectively curb the rise in cotton prices. If the increase in cotton prices is too large, China can stabilize the market by dumping reserves.

In terms of demand, CCI's consumer survey has consistently shown that natural fibers (such as cotton) are popular with consumers all over the world. As long as products are on the shelves and prices are competitive, consumers in both developing and developed countries will express this affection directly on the choice and purchase of cotton textiles. We are very confident about this.