Developing New Relationships and Making Changes
March 12, 2010 As in many other industries, the past two years have been very difficult and challenging for the cotton industry. However, as we embark on a new year, 2010 holds promise that the worst is behind us and that some optimism is returning. For the first time in a number of years, there is interest in planting cotton rather than considering alternative crops to grow. This is most definitely an encouraging situation and hopefully it will allow the industry to stabilize and consolidate after the traumatic period it has been through.
They say that from adversity comes opportunity — and that is where we find ourselves today. As individuals, as companies, and as the International Cotton Association (ICA), we face opportunities that have undoubtedly arisen as a result of the turmoil we all witnessed. The downsizing and rationalization of the cotton industry has meant that all companies and associations have had to review their operating structure and cost base. The ICA is no different and we must review all aspects of our operation starting with our membership structure. We must also continue to develop the image of the ICA in the international marketplace.
Strengthening International Ties
In recent years, we have been pursuing a course of internationalization and, during 2010, we will certainly continue in that direction as we strengthen ties in Europe, the Americas, the Middle East and Asia. That direction starts with our Board. Our new Board, which took office in December, is the most internationally represented Board that our association has ever had. I believe that this facet will help us advance strongly into the position of being, without question, the leading arbitral authority in the global cotton industry.
With this increasingly international Board representation, it is incumbent upon us to use this situation to further develop relationships with the many bodies now engaged with the ICA. We have had a long-standing relationship with the American Cotton Shippers Association and, for the first time, we have allocated a specific Board position to represent this important association. In addition, we are also developing new relationships with the representatives from Bangladesh and Pakistan, while increasing our focus on Asia.
With the development of these new relationships comes an appreciation that we must make some changes both to our association and, potentially, to some of the rules that we operate under. The membership structure, as mentioned above, is definitely an area that will be reviewed this year, but the potential changes to our Bylaws and Rules may have the biggest impact in terms of spinners interest and involvement with the ICA. Another area that constantly demands attention is the arbitration process, most noticeably its cost and length of time.
Taking the ICA to the Markets
Historically, the ICA held its first Board meeting outside Liverpool last year and it proved to be a significant success, generating considerable interest and confirming that by taking the ICA to the markets we can engage a far broader representation of our membership. This year, we are going a step further, quite literally, conducting a Board meeting in Singapore in March together with a forum entitled, “Protecting Your Cotton Business.” We are very excited about this event and the reaction from the industry thus far has been extremely positive. Our move into Asia is very deliberate and during 2010 you will witness a strong commitment from the ICA to develop our footprint in the most important cotton-consuming region in the world.
Following from the theme of “Protecting Your Cotton Business,” now really is the time to join the ICA. Membership can help reduce the risks inherent in the cotton trade and provide protection for you and your business. We have more than 300 members and by joining you become part of a diverse trade group, supported by industry professionals who share the same ethos — the promotion of equitable trading, contract sanctity and integrity.
In closing, I ask you to consider what our trading environment would be like if we did not have the Bylaws and Rules of the International Cotton Association. Upholding the principle of sanctity of contract would be far more difficult if we had a multitude of trading rules, or even worse, none at all. The ICA provides the platform for the orderly trading environment that we have today.
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