Module Averaging & Pooling
March 3, 2009 For many years, various trade organizations, universities and other entities have made efforts to boost cotton income with the development of new and innovative ideas. New and exotic varieties of cotton have emerged, fiber characteristics have improved, precision farm machinery has been developed and irrigation efficiency has greatly increased.
However, to date, very little effort has been made in developing ways to drastically cut costs in cotton production from harvest to textile manufacturer. Doing so could provide benefits to producers, ginners, merchants and textile manufacturers not only in the United States, but also throughout the world. The Cotton M.A.P. (Module Averaging & Pooling) system offers a potentially viable solution.
In the current economic climate, the American farmer, as well as the domestic textile manufacturer, simply cannot compete with foreign-grown and foreign-made textiles. Differences in currency values, variations in labor and environmental regulations and less stringent import quotas have created a very competitive environment for United States grown cotton. A major factor is that American textile manufacturers cannot pay the price for the cotton that American growers require to stay in business. When the American producer’s expenses are based on the value of American currency and the producer’s selling price is based on foreign currency, there are times when the currency differential is such that this gap cannot be closed.
Envisioning A Two-Step Process
Dramatic cuts in cost can be achieved from gin to mill by using an advanced form of module pooling combined with a new method of fiber enhancement. The Keith Walking Floor fiber blending system makes it possible for fibers of differing quality to be blended to improve the overall grade of the pool or modules. Custom blends can achieve specific fiber characteristics. In turn, growers and ginners are able to exert more control over the final quality of the fiber, resulting in a value added product.
Module Pooling
Cotton pooling is not a new concept. For many years, marketing cooperatives have entered into agreement with member producers to market baled cotton to shippers and textile manufacturers. The goal is to supply large volumes of baled cotton in a consistent manner, at various times of the year. The objective is to achieve a more uniform method of marketing. Although this marketing concept is growing in popularity, it leaves much to be desired. Ginned cotton is still graded and transported to central warehouse locations, sometimes many miles from the cotton’s origin. There it is received, stored and shipped, all increasing the expense of production per bale. With fiber enhancement and module pooling, much of this additional handling and its associated costs can be eliminated.
Averaging and Pooling
In 1991, the USDA began the Agricultural Marketing Service (AMS) Cotton Program, which offers voluntary module averaging. The Cotton Program classifies all bales in a module or trailer, establishing the HVI measurements for fiber length, strength, length uniformity and micronaire. Results from the Cotton Program have shown that averaging modules is more statistically sound than averaging individual bale measurements.
Blending
Under the proposed fiber enhancement system,10% of the producer/member’s cotton production would be ginned after harvest. This would result in a blended outturn, establishing an average value of the balance of the unginned production, for which the producer could receive advanced payment. Next, the balance of each producer/member’s production would be stored in covered module form awaiting sale and direct shipment, thus eliminating expensive transportation and warehouse storage fees.
By establishing a blended average on the initial 10% of production, a pre-determination of the grade and pricing can be made on the balance of the unginned cotton.
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