Allen A. Terhaar
20 Jun. 2011
COTTON PRICES TO REMAIN HIGHCotton prices are most likely to remain high due to several factors and changes, such as economic and population growth, rising labor and energy costs, weather conditions, and demand changes. This is what a study by the Cotton Council International (CCI) reveals whose results were presented by Allen A. Terhaar, Executive Director of Cotton Council International, in Düsseldorf on Monday. After ten years without a significant rise in cotton prices, the recent dramatic increase correlated with the weak dollar. Simultaneously, fast growing markets like China or India lead to a growth of global textile consumption. Nevertheless, despite the rise of cotton prices, the increase in retail cost for a pair of jeans is estimated for $1.63, according to Cotton Council International.
In 2011, an overall amount of 24.9 million tons of cotton is said to be produced worldwide on a surface area of 33.5 million hectare. Right now, seven countries are producing more than 85% of the global market amount of cotton: China, India, the United States, Brazil, Pakistan, Australia and Uzbekistan. Since 1986, the USA alone covers between 25 and 30% of the world market’s demand for cotton. In 2011, US cotton exports equal approximately 3.3 million tons. Thus, the United States still represents the globally leading cotton supplier.
In a cotton consumption model in China conducted by CCI, first results showed that cotton makes up 60% of apparel in China, and, although data hasn’t confirmed this fact, the model assumes that domestic cotton consumption in China could outrun consumption in the United States.
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