CCI Looks to World to Boost Cotton Consumption

Before Asian soybean rust reached the United States last fall, we thought U.S. cotton growers might plant a bit less cotton in 2005 due to soft prices. Now we think southern U.S. growers will trim soybean acreage and boost cotton plantings slightly. That was one message Robert Norris, president of Cotton Council International delivered at a lead off session at cotton's Beltwide Conferences.

CCI is the export promotion arm of the National Cotton Council. It is dedicated to boosting U.S. exports of cotton, cottonseed and their products.

The 2005 Beltwide runs through Jan. 7 in New Orleans. More than 3,000 conferees and about 60 exhibitors are participating in the conferences.

Norris, who is also president of Calcot Cooperative based in Bakersfield, California, focused on marketing development efforts CCI is conducting with partners worldwide.

"For the first time in nine years, global cotton production significantly exceeds demand at the same time the United States has a record crop to export," explains Norris. "International trade issues have taken an even greater significance against a backdrop of changing global dynamics in apparel sourcing and gyrating prices. As U.S. cotton enters the quota-free era of 2005, CCI continues to adjust its COTTON USA program to stay a step ahead.

Norris expects China, Thailand and India to step up apparel marketing efforts to capture market share as the quotas end.

Still, U.S. cotton exports command a nearly 4-cent premium compared to cotton exports from 65 other countries. Norris explains three reasons:

• When users source U.S. cotton, they get contamination-free bales. Some Chinese cotton, for example, might contain chicken feathers.

• Buying from the United States assures contract sanctity. Buyers will get delivery if the price rises.

• The United States provides unequaled technical support.

CCI's supply chain marketing approach works forward from the spinner and weaver, through the supply chain to identify potential partners eligible for COTTON USA promotions. CCI continues to partner with brands and retailers to work backward through the system to identify and license COTTON USA eligible products.

"CCI integrated the supply chain marketing tactic into 2004 operations," says Norris. "We'll put even more emphasis on it in 2005."

"As one example, European retail organizations participating in the COTTON USA sourcing tour to Turkey have a joint turnover of $7 million and sell products in 120 countries," he adds. "Preliminary information indicates one sample order alone will top $2 million."