Lessons From ICA
March 9, 2009 The International Cotton Association Annual Trade Dinner Event came to a close October 3 in Liverpool, and I have been left in the wake of a very busy week.
I feel I have been initiated in some way by the experience, as if I can now officially say I am a member of the international cotton business. Before leaving, I was surely given a fair amount of warning by friendly industry members who have attended in years past. I was told to expect late nights and early mornings. I was warned about losing money at my dinner table’s customary bet on how long the speeches would be. I was told to be sure to have an umbrella at all times. All of these given expectations were, in fact, spot on accurate. I slept very little for three days, lost my $10 wager, and inevitably got damp every time I walked outside without my umbrella.
Of course there were other predictions about my trip that ended up being accurate, as well. Everyone informed me that the meetings would feature industry experts dispersing valuable information, that I would be introduced to some of the most prominent players in the global cotton business, and that the dinner would be a phenomenal amount of fun. None of my expectations were left unfulfilled.
The true diversity of the industry was made clear to me at ICA. Aside from the multiple countries represented, I was surprised by the variety of functions each person served in the business. Aside from organizational leaders, merchants and traders, I met people from shipping companies, attorneys who handled arbitration disputes, and representatives from insurance providers and banks. The complexity of the global trade became very real to me then, as I was trying to understand what vital role each person played.
Meeting presentations on October 2 underlined the central concerns and interests of the industry currently. Particular focus was given to the future of both China and India, how their cotton production would effect, and be effected by, changes in Western markets. It seemed everyone was trying to solve the equation for the coming seasons; where will demand be and where will the supply be produced? The reports provided more than mere statistics; each presented a unique and cerebral approach to the analysis. The future of global cotton seems infinitely brighter when one understands the ingenuity of the industry’s leaders. Other presentations, ranging from freight issues to trends in the clothing industry, were instructive and helpful in their attempts to reveal the developments in the more tangential industries that affect the cotton trade.
While riding in a cab to a function, the driver asked me the reason for my trip to Liverpool. When I told him I was there for an international cotton conference, he inquired about the business. “How are things in cotton?” he asked. I went on to tell him that the market had been tough on cotton this year and that the outlook was rather bleak within the industry. He very jovially replied, “Well ma’am, it will pick back up; it always does. All businesses go through high and lows. You just have to hang on and wait it out. You know, all the smart, hard working people will still be around when things brighten up.”
And while we all know this to be true, my cab driver stating the obvious was an important thing to hear. It is what should be focused upon as we enter into another year in cotton.
EDITOR’S NOTE: Cotton International Magazine readers can expect continued reports from the conference, both in our monthly publications and in our weekly Insight newsletter. Meeting presentations will be summarized and analyzed, and coverage of the social events will be a continued part of our focus.
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