California Producer Accepts the Gavel
March 2, 2009 Tranquillity, CA, producer John Pucheu was elected chairman of the National Cotton Council at the conclusion of the Council’s Annual Meeting in Austin, TX, on February 6. He succeeds Allen Helms, a Clarkedale, AR, producer.
Pucheu served as vice-chairman of the NCC in 2006. He was elected chairman of the American Cotton Producers in 2004, and reelected in 2005. In addition to his years on the Council’s board of directors, he has served as chairman of Cotton Council International, the Cotton Board, Calcot and Supima. Pucheu is also a past president of the California Cotton Association. He began farming in 1966.
“John has a long record of outstanding service to the National Cotton Council and the cotton industry,” said Helms. “We are very fortunate that John has agreed to answer the industry’s call to serve as the Council’s chairman in 2007. He brings proven leadership and expertise. His tenure will be successful, and we wish him the very best.”
Said Pucheu, “I would like to thank all of the members of the National Cotton Council for this tremendous honor. … (I) look forward to serving this industry in 2007. As chairman of the National Cotton Council, I will do my best to represent the interests of all the segments of this industry. With the help of a united cotton industry made possible by the Council, I look forward to addressing the issues before us and helping to shape a more profitable future for our industry.”
Pucheu will face the immediate challenges of writing a new Farm Bill, uncertainty surrounding trade with China, the United States’ largest trading partner, an enormous drop in cotton acreage and depressed prices.
Darkest Before The Dawn?
But opportunity is often born of adversity. Dr. Gary Adams, the Council’s vice president, economics and policy analysis, said in his address in Austin that U.S. cotton’s situation in 2007 will be shaped by a number of uncertainties and challenges, but there is some cause for optimism.
In presenting the NCC’s 2007 Economic Outlook, Adams noted the recent improvements in U.S. yields. This was highlighted by U.S. cotton producers’ 2006 average of 819 pounds per harvested acre despite “less than ideal” weather across much of the Cotton Belt.
That was the third highest U.S. yield average on record “providing further evidence that new varieties, better management and the success of boll weevil eradication are contributing to better yields,” Adams said. “In spite of weather challenges, the (2006) crop of 21.7 million bales exceeded many pre-harvest expectations and also was the third largest on record after 2004 and 2005. Higher yields are also helping growers partially offset the negative impacts of higher fuel and energy costs.”
Another reason for optimism is growing demand for cotton. At the processing level, China continues to lead the way.
Adams said mill use in China has reached 50 million bales, fueled both by growing textile exports and increased retail demand by Chinese consumers. He noted that for 2007, China is expected to lower acreage, causing a drop in production, leading to an increase in exports. But even under that scenario, Adams said that in the 2006/07 marketing year, all cotton exports from the United States are expected to drop sharply from the previous year’s level.
But in the next marketing year, Adams said he sees U.S. exports recovering to 16.22 million bales.
Adams said one of the critical questions surrounding the current outlook is the increased competition for available crop acres. Approaching the 2007 planting season, grain and soybean prices are trading 30%-50% above last year’s levels, while cotton prices are largely unchanged.
| Upland Cotton | ||
| State | Actual 2006 Acreage (in Thousands of Acres) |
Projected 2007 Acreage (in Thousands of Acres) |
| Alabama | 575 | 472 |
| Arizona | 190 | 191 |
| Arkansas | 1,170 | 997 |
| California | 285 | 208 |
| Florida | 103 | 102 |
| Georgia | 1,400 | 1,072 |
| Kansas | 115 | 111 |
| Louisiana | 636 | 411 |
| Mississippi | 1,230 | 929 |
| Missouri | 500 | 474 |
| New Mexico | 50 | 43 |
| North Carolina | 870 | 669 |
| Oklahoma | 320 | 271 |
| South Carolina | 300 | 228 |
| Tennessee | 700 | 584 |
| Texas | 6,400 | 5,995 |
| Extra Long Staple | ||
| State | Actual 2006 Acreage (in Thousands of Acres) |
Projected 2007 Acreage (in Thousands of Acres) |
| Arizona | 7 | 6 |
| California | 275 | 320 |
| New Mexico | 13 | 9 |
| Texas | 31 | 26 |
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