Cotton in 2010

A Lastest News about Cotton in the United Kingdom

Posted on: 17 Feb 2012

Presentation at RITE Conference 2010

Cotton production trends and sustainability 2010 Simon Ferrigno Consultant Sustainable & Organic Farm Systems RITE Conference 2010 Westminster Central Hall, October 6 2010 Simon Ferrigno Cotton Simon Ferrigno Cotton fibre: facts 100 million farmers and 250 million jobs 80 countries 33 million hectares 36.5% of textiles market 2.5% arable land US$ 37 Billion Simon Ferrigno Evolution of global cotton production since 1950/51 Cotton production volume for selected 10 year intervals 1951-2011 30.00 25.00 20.00 15.00 Volume 10.00 5.00 0.00 50/51 60/61 70/71 80/81 90/91 00/01 10/11 Simon Ferrigno Million Metric Tonnes Cotton: current position Production: 22.08 Million MT lint in 2009/10 Consumption: 24.30 Million MT Projection for production 2010/11: 24.90 Million MT Marginal rise in stocks 2010/11 Simon Ferrigno Cotton production and future projections 2007/08 to 2011/12 Cotton production and projections 07/08 to 11/12 30 25 20 2007/08 2008/9 15 2009/10 2010/11 2011/12 10 5 0 Global China India USA Pakistan Brazil Uzbekistan Others Simon Ferrigno In Million Metric Tonnes Cotton prices Cotlook A prices 1970-2009 100 90 80 70 60 50 40 30 20 10 0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Date: 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Years Simon Ferrigno Prices Cotton Prices Cotlook A prices 1970-2009 ranked from highest to lowest 100 90 80 70 60 50 40 30 20 10 0 1980 1983 1979 1989 1996 1982 1978 2007 1997 1984 1988 1977 1991 2006 1998 2000 1999 2004 1972 1971 Date: 1994 1995 1990 1976 2009 1973 1981 1987 1993 2003 1975 2008 1986 2002 1992 2005 1974 1985 2001 1970 Years Simon Ferrigno Prices Cotton subsidies Subsidies have declined in past year but remain at an average US$ 0.13 per pound, US$ 3.5 Billion in total 52% of world cotton is subsidised China paid highest subsidies in 2009/10 ahead of the USA Highest subsidies per unit are in Spain (US$ 1.96) and Greece (US$ 0.55) Simon Ferrigno Cotton subsidies Direct assistance subsidies past two seasons 3,500,000,000 3,000,000,000 2,500,000,000 China USA Greece 2,000,000,000 Turkey Brazil Spain 1,500,000,000 Colombia India Pakistan 1,000,000,000 500,000,000 0 2008/2009 2009/2010 Simon Ferrigno In US $ Cotton production costs P Sample cost of production for irrigated cotton1 roduction costs are rising 0.9 Direct costs of seed cotton production 0.8 0 are US$ 0.43.7 irrigation 0.6 Y Weed controlields are stagnating and inputs such Feartilizser 0.5 Insecticides fertilizers are increasing in costs seed planting0.4 0.3 Rain-fed cotton is cheaper to grow than 0.2 0.1 irrigated cotton 0 Simon Ferrigno In US $ Cotton sustainability trends TrendSs oinm ien sinedcicticaitdoers fuosre c 1o9tt9o0ns: 2to0 1p0resent 2156.00% 14.00% 20.00% 12.00% 10.00% 15.00% 8.00% 10.00% 6.00% 4.00% 5.00% 2.00% 1990s to present 0.00% 1 Water use 2Land area Pesticides3 Insecticides 4 Simon Ferrigno PercePnetr ocef gnltoabgael use Intermission It probably feels sometimes like CSR people, NGOs and activists are doing this to you.... Simon Ferrigno Sustainable Cotton Choices Improving coStutstoainnab lies c oatto nm in 2a00t9ter of investing in 700,000 the system as well as choosing the right 600,000 system 500,000 Verifiable/transparent systems (e.g., Better Cotton 400,000 organic) as well as training/growing systeCmmiAs O/FT such FT300,000 as IPM Organic 200,000 Organic, Fairtrade, Fairtrade/Organic, Better 100,000 Cotton, Cotton Made in Africa, Basic 0 Program are some recognised options Hectares Farmers Volume Simon Ferrigno Volume in Metric Tonnes Cotton: what influences production & sustainability trends? Targeted investment in system and farmer support, not just technology Prices and costs of inputs Consumer and industry demand Limitations of land and water Natural advantages of a given region in soil, climate, rainfall, etc. Simon Ferrigno Cotton Progress has been made Much remains to be done New challenges are ahead Simon Ferrigno Thank you! Simon Ferrigno
Posted: 17 February 2012