ICAC: Colombian Cotton Market In Decline
July 31, 2013 Cotton cultivation in Colombia has deteriorated due to decreasing demand from both the domestic and global textile industry as well as lack of sophisticated pest management program at the farm level.
According to a statistical report about the Colombian cotton industry from the International Cotton Advisory Committee (ICAC), during the last three years, the profitability and competitiveness of cotton cultivation has seriously deteriorated. The consumption of cotton fiber in Colombia has fallen 20% in the last decade, from 85,000 tons in 2005 to 68,000 tons in 2013.
The ICAC report states that Colombian cotton farmers are discouraged because of the reduction of demand for cotton from the local textile industry.
The ICAC report states that at the global market level, increased price volatility has negatively affected cotton fiber consumption and stimulated higher contents of other synthetic fibers in products, which leads to higher cotton stocks and lower international prices.
As a result, cultivation costs of cotton have increased, yields have been declining and the financial situation of cotton growers has seriously deteriorated, forcing growers to reduce credit and supplier’s payments, the report adds.
However, with the scheduled implementation of the Interim Trade Agreement between Colombia and the 28-EU member states, the demand for Colombian textiles, and thereby cotton, may grow.
The Colombian Minister for Commerce, Industry, and Trade, Sergio Diaz-Granados, said the agreement would boost the domestic market by allowing Colombia to take advantage of tariffs.
Source: Fibre2Fashion
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