The internal market becomes target of cotton sector

Sao Paulo-the brazilian cotton industry, one of the most exporters in the world, feel the external market saturated and the slowdown in Chinese purchases. Now, in addition to maintaining its position as a global supplier, the chain is moving to regain a slice of domestic demand that lost to imports in recent years.
In response to the growing use of synthetic tissue composition for the manufacture of garments in General, the Brazilian Association of cotton Producers (Abrapa) has created the plan to encourage the use of cotton, whose current step is the campaign "I''m from cotton" seeking partnerships directly with the national fashion industry. The goal is to increase at 5% using the feather in the textile chain in five years.
"We found that only 23% of female clothing is composed of cotton. The male is in the order of 64%. Child segments and bed, bath & beyond, this figure reaches 83%, "says the President of the Association, John Charles Jacobsen. Hence the focus on the fashion industry.
The official launch was held at the São Paulo Fashion Week (SPFW), in October.
The international market is responsible for 60% of the demand in the industry. The Executive points out that the average gain of producers with the sale of the commodity is r $6 per pound, while the pay for a shirt can reach R$ 300 per kilo of feather. "This difference in value is what the Country fails to win when we export cotton in feather," he explains.
Year to date, until last month, the Country embarked 640,000 tons of cotton, 10.4% above the volume sold in the same period in 2015. In contrast, data from the Ministry of agriculture show that the average price fell 4 percent, in dollars per tonne.
Consulting analyst Crops Market, Elcio Bento & assesses that there is a tight situation between supply and demand out there, with China reducing its role in global imports.
Here, between seasons 2010/2011 and 2015/2016, suffered a fall of one million tons to 600,000. "Most of the commodities you don''t feel the effects of the recession, but with cotton is different. You can get a year without buying clothes, but not eating cannot be "exemplifies the expert.
In this way, will be a challenge to raise domestic demand while the Country is still in crisis. For Benedict, the resumption of the textile industry will be tied to economic recovery and, as a result, the improvement in the purchasing power of households.
In farming
The think tank expects 4% reduction in the acreage of the crop 2016/2017 and 9% increase in production, in line with the projections by the national supply company (Conab).
The increase in the planting of corn and the 33% increase in production costs of cotton are factors that may have led to the migration of farmers to other crops.