India Bans Cotton Exports; Global Prices Jump

(Reuters) – India banned cotton exports with immediate effect on Monday to ensure supplies for domestic mills, boosting global prices some 4.5 percent as the absence of shipments from the world’s second-largest producer might tighten a market facing weak demand. Read the full story here.

The ‘Snicker Factor’ Aside, Hemp is Serious Business

A great article in Sunday’s edition of the Globe and Mail on the benefits of industrial hemp.

“Manitoba Harvest is now one of the world’s largest hemp food manufacturers. Its sales growth has averaged about 50 per cent every year since 1998. It currently makes 68 per cent of its sales in the United States, 30 per cent in Canada and 2 per cent in Europe and Asia.

In addition to health food stores, it is penetrating mainstream grocery chains in the United States and collaborating with Maple Leaf Foods Inc. on hemp-based research and development in Canada. Manitoba Harvest has provided product and technical support to Maple Leaf’s majority-owned subsidiary Canada Bread as it experiments with hemp bakery products, Mr. Fata said.”

To check out the full article, which includes great coverage on NAT, click here.

Wet Spring, Lousy Harvest Mean Higher Prices

U.S. food prices are expected to stay high through 2012 because a wet spring will likely cut the size of this fall’s corn harvest.

And cotton has woes of its own, but for the opposite reason: a drought in Texas.

The government said on Thursday that The United States will have a surplus of just 695 million bushels of corn next year, less than the 900 million estimated last month.

The Agriculture Department said rain delayed planting schedules and will likely diminish crops by harvest time in September. This followed a more optimistic forecast in May, which predicted a drop in corn exports that could have replenished U.S. food supplies and eased prices.

More expensive grain has led to food price increases this year. Manufacturers and grocery stores have passed higher costs on to consumers. For all of 2011, the USDA predicts food prices will rise 3 percent to 4 percent.

To read the full story and to learn more about alternatives to cotton, visit WITN.com.

Behind the Rising Price of Polyester

For years, the primary indicator of polyester fiber or filament cost was the fluctuation in petroleum prices.  If the price of a barrel of oil increased, so did the price per pound of the base synthetic ingredient: polyester staple fiber (PSF).

“This last eight months has been different,” says Alasdair Carmichael, president of the Americas division of the U.K.-based PCI Fibres. “Oil has been increasing, but the rate of increase at the fiber level has been greater than the increase at the oil level.”  A new factor has come into play in the past year, and it’s surprised industry watchers.  The price increases this year are demand-driven, Carmichael says, and the additional demand is due, in large part, to a shortage of cotton.

CLICK HERE to read the full story in Specialty Fabric Review.

NAT Featured in Oregon Business

Ken Barker, CEO of Naturally Advanced Technologies.

Be sure to check out the great coverage in this months issue of Oregon Business.  Learn more about our company’s history, where we’re at now and our big plans for the future.

Click here to read the full story.

The Cost of Cotton Explained

Yet another great article in this month’s edition of Textile Insight.  “Finding Order and the New Normal in a Chaotic Marketplace – The Cost of Cotton”, written by Textile Executive Karla Magruder, explains the factors behind the astronomical cotton prices we’re seeing today.

Click here and flip to pages 39 thru 40 to learn more about what’s behind the price hike.

Apparel Costs Rising and It’s Not Just Cotton

The Outdoor Retailer Winter Market, a major American trade show, wrapped up on Sunday, January 23rd.  Participants included prestigious retailers from the outdoor sports sector and manufacturers including RadiciGroup, who presented a seminar titled “Apparel Costs Rising: And It’s Not Just Cotton”. 

“What is happening now to cotton has inevitable repercussions on all the other natural and synthetic fibres.  But what is going on with this product?  A reduction in cotton cultivated areas and poor harvests due to adverse climate conditions have decreased supply, while market demand for the product, particularly in Asia, is experiencing strong growth.  The result has been a huge price surge (a 136% increase over 12 months was recorded).  To this, we must add that cotton-producing countries have shifted their focus to value-added products and are trying to export semi-finished (yarn) or finished goods (fabrics), thus penalizing cotton processing countries”, organizers said.

The raw materials price rise is said to be having an effect on all finished products worldwide, from cotton to wool and man-made fibres, with an inevitable, strong impact on the entire textile and apparel industry.  These issues were discussed by Mike Todaro – Managing Director of AAPN,   Kurt Cavano – CEO of Tradecard, Randy Harward – Sr. Director of Quality and R&D of Patagonia, Rick Horwitch – VP Solutions Business Development & Marketing of Bureau Veritas, Kim Hall – Marketing Manager of Radici Group and several other leaders in the textile and manufacturing industry.

“After participating last December 7 in the first Virtual Design Center LIVE, a virtual interactive seminar produced by US Outdoor Retailer,” Kim Hall said, “we wanted to bring our experience and present our point of view at the seminar, Apparel Costs Rising:  And It’s Not Just Cotton.  It was a very interesting meeting of ideas.  On our part, we discussed the aspects related to the rising costs of raw materials and the consequent increase in manufacturing costs for man-made fibres, from spandex to polyester and nylon.”

“Other non-apparel markets can pay a higher premium for their component raw materials because their final products command a higher price and, therefore, increased margins.  In our case, since we are not able to recoup the raw material price increases but want to remain a stable and reliable supplier, we must inevitably pass along such price increases.  Retail needs to understand that.”

As many large retail chains continue to report losses and consumers hold their wallets ever so tight, we have to ask ourselves this question….will retail understand?

We need to consider alternatives to the fibre crisis we are facing.  Cotton, wool and man-made fibres will continue to rise and we will need to seek out cost-effective options.  Click here to learn more about economically viable alternatives to what we once considered “The Fabric of Our Lives“.

Stronger Than Usual Commodity Prices are Here to Stay

The US cotton price hit a 140-year high last week of $US1.6789 a pound for near-term futures.  From corn stalks to cotton bushels, soybeans and more, the story is the same: stronger-than-usual commodity prices for farmers.

Although no one holds the crystal ball, agricultural professionals estimate such prices will continue through the year due in part to supply concerns.  As the U.S.  economy continues to struggle, countries such as China, India, Japan and Brazil show continued growth and demand for products.

Many times, when commodity prices rise, it’s a short-crop phenomenon -  producers grow more of a specific crop, meet that demand and then prices return to normal.  Today’s situation has potential to stick around because farmers have more flexibility in what to grow.

“This is not so much a short crop driven thing, it may have more staying power than normal”, explains Mark Waller a professor with the Texas AgriLife Extension Service in College Station.  “It’s what works best for them”, he said, explaining producers can factor in input costs and more.

As commodities continue to rise, you can expect that both manufacturers and end consumers will be holding their pocket books tightly.  Economically viable alternatives are the key in these tough times.  We believe that our CRAiLAR Fibre Technology is the part of the solution to the ever rising price of cotton.

Click here to learn more about what we’re doing to bring affordable, sustainably-made solutions to the market.

Cotton Continues to Rise as Australian Floods Surge

Cotton prices jumped the most allowed by ICE Futures U.S. after the most devastating flooding in half a century damaged crops in Australia, the world’s fourth-largest exporter.

Close to 300 000 bales have been lost and that number will continue to rise if the wet weather continues.  According to the Australian Cotton Shippers Association, they had forecast record production of more than 4 million bales before the floods.   Prices have almost doubled in the past 12 months as growers struggled to meet rising demand from China.

Cotton futures for March delivery rose by the exchange limit of 4 cents, or 2.8 percent, to settle at $1.4725 a pound at 2:41 p.m. on ICE in New York in the biggest gain since Dec. 21.  The price touched a record $1.5912 on Dec. 21.

Government data shows the U.S. is forecast to be the largest exporter, followed by India and Uzbekistan.

The Fibre Price Sheet

The economic climate is still recovering, yet retail trends seem to be rolling along in step with the changing seasons. But what is really going on in the retail industry?  Fibre prices are escalating and the front of house is trying to retain its steady compusure while the back of house is scrambling to make production ends meet.

“Once these higher fibre prices filter through the supply chain, it’s going to be painful,”  said Gary Raines, vice president of economics and analysis with FCStone Fibers & Textiles.  “Who’s going to crack first?  Will consumers willingly pay higher year-over-year prices for apparel?   I’m not sure.  2011 is shaping up to be unlike any year we’ve seen.  There is a major disjoint between retail trends and what’s happening on the fibre side.” – WWD.com

Both synthetics and cotton will soon be out of the question if prices continue to rise at such a dramatic rate.  Iti’s now time that farmers, designers and manufacturers begin to look for economically vialable alternatives.

Our own fibre, CRAiLAR® Flax is soft like cotton, has a similar color, possesses similar performance traits and is cool and comfortable to wear year-round.  CRAiLAR® Flax and cotton look the same, fit the same and wash the same.  Still, CRAiLAR® Flax fibres shrink less than cotton fibres do, wick moisture better, and have increased dye uptake meaning they take less chemicals to reach the same color levels.

With cotton prices currently well over a dollar per pound, flax is a cost-effective raw material for fibre
production.  We estimate that we will be able to provide CRAiLAR® Flax at approximately $0.90 per
pound making it an economically viable complement to cotton.

The revolutionary all-natural CRAiLAR® process is non-polluting and consumes a lot less energy and
water than it takes to produce other natural fibers.  While CRAiLAR® Organic Fibres are strong and
durable like petroleum-based synthetics, they’re made from earth-friendly flax or hemp.  The processing
chemicals used within the CRAiLAR® process have been approved for use as textile auxiliary agents
according to the Global Organic Textile Standards (GOTS).  GOTS approved inputs are screened for
prohibited toxic chemicals such as aromatic solvents, heavy metals or fluorocarbons as well as
Genetically Modified Organisms (GMO).  All substances must also comply with strict toxicity and
eliminability standards.