Clothing manufacturers surprised by demand for cotton

Expecting a shift toward greater use of man-made fibers, clothing manufacturers have been surprised by the seemingly insatiable global appetite for natural fibers–primarily cotton. While the cost of raw materials such as wool and silk have gone up significantly, sources predict that cotton consumption will exceed production again in 2010-11, driving prices to their highest point since the mid-1990s.

Many clothing manufacturers that expected prices to drop have been caught unprepared by the worldwide demand for cotton, which the US Dept. of Agriculture expects to increase by three percent in the coming year. Unfavorable weather patterns in some of the world’s top producers have thinned out already-dwindling stocks, with China’s 2009 cotton production down 15 percent due to drought and India’s crop getting off to a slow start due to weaker-than-expected monsoon rains. Many growers have also shifted their crop mix away from cotton, betting instead on higher profits from corn and other grains.

Although India’s rainfall has increased in recent weeks, and a bumper crop is expected in the United States, cotton-based clothing manufacturers are expected to face significant cost pressure. Given the international economic woes, it will be increasingly difficult to pass those added costs on to the consumer.