Posts tagged ‘Cotton Prices’
(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.
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.
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.
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.
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.
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“.