Record global cotton use is predicted
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CTA. 2003. Record global cotton use is predicted. Agritrade, May 2003. CTA, Wageningen, The Netherlands.
Permanent link to cite or share this item: http://hdl.handle.net/10568/52961
External link to download this item: http://agritrade.cta.int/Back-issues/Agriculture-monthly-news-update/2003/May-2003
The USDA 2002/03 cotton forecast projects record global cotton use for the...
The USDA 2002/03 cotton forecast projects record global cotton use for the fourth consecutive year. World cotton consumption has risen 50% since 1981/82, largely reflecting growth in developing country markets, such as China. China's share of world cotton consumption has risen from 22% to 29%, and it expects to consume 50% more cotton this year than in 1998/99. This year will be the first year of significant net imports into China since 1997/98, with demand previously having been supplied from domestic production. While, in the face of lower cotton prices, production in India and Pakistan (two other major producer/consumers) was expected to be lower this year, rising Chinese import demand and growing world consumption has seen cotton prices rising 45% in the year up to March 2003. Comment: Rising global consumption of cotton driven by demand in China, India and Pakistan stands in stark contrast to declining consumption of cotton in developed country markets such as the EU, USA and Japan. The changing geographical profile of world demand has important implications for ACP cotton producers, with developments in Chinese production and consumption increasing price volatility. This price volatility falls particularly heavily on ACP producers since producers in developed countries such as the EU and US are insulated from price fluctuations by agricultural support policies which maintain high levels of production despite declining global prices.
SubjectsMARKETING AND TRADE;
- CTA Agritrade