See also:


Market News

The Sales Volume of Cotton Fibre in Russia Decreased

The sales volume of cotton fibre in Russia went down from 238.6 thousand tons in 2006 to 74.7 thousand tons in 2010. Over the period of five years decrease in the sales volume amounted to 68.7%.  The reduction of the sales volume of cotton fibre is connected with the replacement of domestic textile by imported products, primarily, from China and other Asian countries. The price for foreign textile is lower than for the Russian one, and as a result the importers oust the domestic producers from the market.  Some of the Russian companies began to buy end products of cotton yarn and textiles, and this fact also stipulated decrease in demand for cotton fibre.

In 2006-2010, the money turnover in the cotton fibre market in Russia was going down steadily  . In 2006-2010, the market turnover lowered by 24.1%: from 7.04 billion rubles to 5.34 billion rubles.  Drop in the cost volume of sales is connected with the decline in the actual volume of sales of cotton fibre.  Part of the decrease in the cost volume of sales is made up for by the constant price advance of cotton fibre. This way,according to BusinesStat analysis, in 2006-2010 the wholesale price increased almost by two and a half times: from 29.5 rubles per kg to 71.5 rubles per kg.

The cotton industry in Russia is absolutely dependent on the imported raw materials – cotton fibre, the major part of which is imported from the CIS. In 2010, the leading country–importers of cotton fibre into Russia were Uzbekistan, Kazakhstan, Kyrgyzstan, and Tadzhikistan. The share of Uzbekistan of the total import volume of cotton fibre into Russia equaled 28.5%, the share of Kazakhstan amounted to 27.2%, the share of Kyrgyzstan totaled 18.5%, and the share of Tadzhikistan made up 17.2%. In 2010, the total share of these countries equaled 91.4% of the total import volume.

Global Total Yield of Raw Cotton will Increase

In 2006-2010, global total yield of raw cotton decreased by 13%: from 70.9 million to 61.4 million tons. The main reason of the reduction of global total yield of raw cotton is acreage decline in the countries, leading in the cotton fiber production.

Acreage decline is connected with the competition from the other cultures. This way, in 2006-2010, in the USA the acreage decreased by 39.4%: from 5.12 million hectares to 3.12 million hectares. In the USA the manufacturers are more interested in corn than in cotton. The same situation is in Turkey, where acreage of raw cotton lowered by 29%. In 2006-2010, in Greece, total yield of cotton went down by 30.2%: from 1.04 million tons to 0, 73 million tons.  Greek farmers used the cotton acreage for cultivating competitive cultures, particularly, cereals.  In some African countries the farmers reduced the sowing of cotton because the price for it had been low during several seasons.    

In 2011-2015, global total yield will be increasing by 4% annually. In 2015 total yield of raw cotton will reach almost 74 million tons. The main growth factor of total yield of raw cotton, according to BusinesStat analysis, is the increasing productivity of land.  The average global yield in 2011-2015 will go up from 2.05 to 2.11 tons per hectare. The increase of yield is connected with the wider adoption of modern technologies, such as integrated control of insects, effective use of water, rotation of cultures, and improvement in fertilizer use. The most significant modern technology is biotechnology, which works at reducing risks and cultivation costs. Although, in some countries biotechnology contributes to the yield increase. For instance, in 2007, in India due to the increased sowing of genetically engineered cotton the yield volume went up by 11%: from 1.26 tons per hectare to 1.40 tons per hectare.