Maximum Satisfaction
March 11, 2009 As margins narrow in the global cotton markets, mills are beginning to feel the pinch. Cotton prices fluctuate, new technology is constantly being introduced to the market and competition gets fiercer each year. With the pressure on, mills around the world are under increasing pressure to address a multitude of needs.
Of course, better fiber quality is constantly an important variable for mills. Spinners have also indicated that better color, less contamination and transparent business transactions are important factors, while preventing contamination remains a priority. In a struggling global economy, mills may find it harder and harder to satisfy each of these needs.
Some markets, such as India’s, have begun to address these needs on their own. With the introduction of genetically modified cotton varieties, India’s producers have been able to boost their production significantly. And with new technology in production, mills often reap the rewards.
“India is making great strides (in preventing contamination) with the continuing education of farmers and ginners, the addition of new gins and an improving infrastructure that should project this roller ginned cotton into a major force,” says Greg Wakefield of Wakefield Inspection Services. “India also has the advantage of market proximity.”
That domestic proximity is another bonus for the country, as reliable shipments are another important factor for mills. “Quality is always important, but increasingly these days price and reliability of suppliers appear to be the key factors. Other major factors are transit times – as they reduce freight rates and the length of credit lines – and consistency of supply,” Wakefield says.
But not all mills can be as fortunate as those in India that are receiving high quality fiber from local production. Spinners around the world struggle to import better fiber on a reliable basis.
Fiber Quality from a Surprising Source
The United States has traditionally been of no help to mills looking for better quality. In fact, spinners have often listed fiber quality as a deterrent from buying U.S. cotton. As recently as 2005, industry leaders told American growers that they would begin to suffer from a system that rewarded yield but cared little for quality.
But with the recent proliferation of FiberMax varieties grown in the western U.S., the country has consistently been able to produce Upland cotton with 1 1/8 inch staple length or greater. The cotton could not market itself, however, and Bayer CropScience set about a marketing plan to change the reputation of American cotton’s fiber quality.
Bayer’s Certified FiberMax Program takes aim at mills’ concerns from a comprehensive standpoint, according to Richard Shaw, Certified FiberMax Manager. “Essentially we’re trying to improve the demand and market access for the growers who grow our cotton, which has our FiberMax germplasm,” says Shaw.
“Our focus is mainly in international markets because the major demand for the 1 1/8 inch cotton comes from overseas,” says Shaw. “China is our biggest market, of course. But Japan also has a strong demand for the higher quality Upland cottons. Mexico is actually second to China in demand for that type of staple length in Upland cotton, excluding Pima and Extra Long Staple.” Indonesia is another market that is beginning to take steps to improve the quality of the fiber it imports, according to Shaw.
The longer staple Upland variety has been seeing increased demand recently, despite a generally faltering demand for other American cotton worldwide due to the global economic recession. The percentage of 1 1/8 inch staple length or better being shipped internationally from America increased dramatically from 2007 to ‘08.
Shaw says that countries that employ ring spinning technology in their mills generally have the greatest demand for the 36 staple and better fiber quality. While those mills may pay slightly more for the fiber, Shaw believes the FiberMax is ultimately cost effective by allowing for faster operating speeds.
“FiberMax has a reputation of spinnability, related to the fact that we believe it’s more consistent. If you buy 37 staple, the variation within the bale and between bales from the field is much less than with other varieties of cotton. So you’re getting a longer staple, but you’re getting it more consistently.”
Reliable Shipping
While the quality of the fiber speaks for itself in most cases, the program also takes steps towards ensuring reliable shipments. The program currently works with three merchants in the Certified Fibermax Merchants Program. With shipments originating from the United States and traveling to such distant and varied markets, reliability is an important factor.
“We work with merchants that have agreed to certain terms. The merchants we work with are by and large very strong with their reputation, as far as delivery. In our survey, we found that delivery time and reliability are a big factor for mills in deciding which merchants they deal with. And we try to be sure we have Certified FiberMax Merchants delivering to them, who have the reputation to make that delivery to them within the confines of whatever they commit to,” says Shaw.
In certifying the three merchants – Allenberg Cotton, CropMark Direct and Queensland Cotton – the program further demonstrated its willingness to comply with the needs of mills worldwide. It’s that type of dedication through a comprehensive approach that Shaw hopes will lead to stronger relationships between FiberMax producers and mills across the globe.
Perhaps the program’s greatest benefit is its ability to validate the cotton that mills receive, according to Shaw. As the program’s name suggests, FiberMax is able to certify that the cotton it delivers is actually a FiberMax variety.
“There is a certificate available, if someone is buying FiberMax, if its really certified FiberMax then they can ask that merchant for a certificate. If indeed the merchant has delivered certified FiberMax, he would be able to provide that certificate that would come directly from us.
“We’re finding at the retail apparel level there is a lot of interest in being able to have confidence in the supply of where their fiber came from. So down the road it may be more and more valuable to the mills to be able to verify to their customers where their fiber came from,” Shaw says.
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