Will Premiums Drive Up Pima Acreage?
March 23, 2009 With a premium price approaching $1.50 per pound, could there be a rebound in Pima production in the West for 2009?
It’s a situation that sounds similar to potential planting intensions for many growers Beltwide who have been tempted by higher priced corn or soybeans.
The number of Pima acres will depend on Upland cotton prices. Overall, only about 203,000 acres of Pima were planted in 2008, barely 2% of the 9.3 million cotton acres planted nationwide. That was down from about 290,000 in 2007. Only about 170,000 Pima acres were expected to be harvested. Most of the acres were in California, but Arizona looks to grab more of the production of the high quality crop.
Pima is extra-long staple (ELS) and its length can range from 40/32nds to nearly 50/32nds. Its superior quality is compared to ELS Egyptian cotton, which is thought to be among the highest quality in the world.
“Compared to Upland cotton, Pima can generate some great premiums for growers,” says Dwayne Alford, general manager of Yuco Gin, Inc. in Yuma, AZ. “We’ve seen $1.20-$1.30 markets for 2008, but we look for $1.30-$1.50 in 2009. There has even been talk of up to $1.80, if markets rally in the Upland price.”
Irrigation Concerns
California growers, who are also facing some critical issues with their irrigation water supply in the San Joaquin Valley, are saying they may need a $1.50 net to make them interested. Yields for Pima are usually a little below Upland and average about 2¾ bales per acre. That’s about a half-bale below Upland production out west.
Alford, whose gin processed several hundred acres of organic Pima in 2008, says the longer growing season for Pima presents more challenges for growers.
“First, they are likely using it as a rotation crop with vegetables,” says Alford. “Growers want to get vegetables planted in September, which can put pressure on cotton harvesting.”
Alford says Pima also faces more varietal challenges than Upland. “There’s no Bt (varieties available) so there are more nagging bugs,” he says. “And the few Roundup Ready Pima varieties have not done as well as growers would like. Pima is not as forgiving.”
A Sticky Situation
Bollworms have presented problems for Pima, even with the pink bollworm eradication program, as well as whitefly infestations, the primary cause of sticky cotton.
Stickiness is usually associated with lint contamination from insect honeydew produced by whiteflies and aphids. Populations of sweetpotato whiteflies increased to epidemic proportions in cotton in California, Arizona and Texas in the late 1980s.
The cotton stickiness problem became apparent in Arizona in 1991 and resulted in discounts of up to 20 cents per pound on cotton lint. Aphids have been associated with stickiness in cotton lint originating in the arid regions of the San Joaquin Valley of California and Texas.
Whiteflies seem to be more attracted to Pima than Upland varieties, but Alford stresses that insect growth regulators (IGRs) are working.
Another potential problem is that Pima has to be grown a distance from Upland fields to prevent cross-pollination. Sinnce nights are cooler in Eastern Arizona, any major increase in Pima production would likely be in that region.
Supima, the promotional organization for American Pima, is continuing its program to promote and market American Pima cotton even if production is down. Supima promotion of the high quality fiber is strong in fashion centers like New York City, where models walk runways in the ultra apparel.
However, over 90% of the annual U.S. Pima consumption is offshore. Most of the consumption today is seen in South Asia (Pakistan and India) and China, although Japan and Indonesia continue to be strong importers of Supima cotton. Other nations such as Taiwan and Peru have also risen to the top in terms of Supima cotton imports. These purchases account for over 80% of all the U.S. Pima cotton exports.
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