American Thinking On Cotton Strategy

2010/2011,

China, not long ago, was held in Dalian.

Industry competitiveness depends on "sustainability".

With the gradual warming of the global economy, the consumption of fiber in the market is showing an accelerating trend.

The negative turn of economic data is prompting consumers to regain their enthusiasm for buying textiles and clothing, and further promote consumption of textile fibers.

Research shows that by 2025, per capita fiber consumption will reach 11~12 kilograms, which means that the global fiber demand will grow by about 20 million tons, of which the growth of demand in China and India will be far greater than that in developed countries such as the United States, the European Union and Japan.

However, such an exuberant demand for fiber has suffered an unprecedented gap in the supply of cotton.

In the past cotton

According to An Tai, in order to ensure that cotton and cotton products occupy an absolute advantage in the growth of total fiber demand, the US cotton industry has made a lot of efforts, among which the most prominent one is the twenty-first Century vision project.

The project is jointly managed by the National Cotton Association, the American International Cotton Association and the US Cotton Corp, covering four aspects: sustainability, consumer research, strategic thinking and American cotton logistics.

The development concept of "sustainability", as one of the key points of the project, not only plays a guiding role in the development of the cotton industry in the United States, but also promotes the competitiveness of the cotton industry to a certain extent.

The work on sustainability is the first to start from field to market.

The purpose of the project is to establish a data collection and analysis system to help farmers to adopt the most effective technologies and methods to minimize environmental impacts under specific climate and geographical conditions.

An Tai said.

"The impact of cotton planting on the environment has always been questioned by the media, consumers and retailers.

If the cotton industry can not prove that its impact on the environment is smaller than other fibers or products, the cotton will lose the market. "

An Tai believes that cotton growers should stand in the perspective of sustainable development for technological innovation and improvement, so as to ensure that the cotton industry can not only provide consumers with the most comfortable fiber, but also the entire production and processing process is very environmentally friendly.

Efficient management of cotton logistics management

Today, the global cotton industry is facing a very different from 25 years ago, or even 5 years ago.

It is understood that in early June of this year, the national cotton Federation of the United States, based on the proposal of the twenty-first Century vision project, aimed at improving the circulation speed of lint from ginning plants to textile mills, and formulated corresponding policies and implementation proposals.

The main contents include: adjusting the standard of warehousing charges, paying more attention to the circulation of stock rather than long-term storage; creating longer chain management of cotton ginning, such as better coordinating the process of distribution, ginning and warehousing of cotton growers through systematic methods, and relaxing the process of selecting cotton bags, such as the average value of four packages or one cotton mold.

At the upcoming board meeting in August, the National Cotton Association of the United States will discuss these policy options.

If so, the supply of US cotton will be guaranteed during the harvest season and can be delivered to domestic and foreign customers in time.

In An Tai's view, efficient management of the logistics links is the key point for us cotton to win the trust of China and even the global industry.

"China now imports 30% of the world's total cotton and 40% of the total U.S. cotton exports.

Therefore, the equal, open and efficient supply of cotton is particularly important for Chinese businessmen.

For a long time, the US cotton industry has been able to guarantee the interests of the US cotton growers and all supply chain enterprises by improving the operational efficiency of the logistics links. "

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Forward market prediction is crucial.

At present, the spinning volume of three countries in China, India and Pakistan accounts for 2/3 of the world total. What will be the situation in 10 years?

An Tai believes that in order to achieve sustainable development, the cotton industry should not only cope with the current supply chain changes, but also predict where the future demand comes from, so as to ensure that cotton will remain competitive forever and achieve good returns.

The "cotton revolution strategy thinking" project is attended by many industry leaders in the US cotton textile supply chain.

After discussion, they identified factors that could affect the cotton industry in the next few decades, including four key revolutions that affect commerce and society: resource management, economic integration, technology and governance.

An Tai said that the goal of the project is to hope that the US cotton can take the lead in strengthening the cotton supply chain in the global industry; develop the information base and provide analytical insights to help the industry predict the future; provide an auxiliary decision-making tool for the global cotton industry, and improve the market competitiveness of cotton relative to chemical fiber.

While establishing a market think tank, the American cotton industry is also persevere in exploring consumers' preferences for various fibers and ways of buying.

The twenty-first Century vision project extended research to many other countries like China and India outside the United States, and conducted three surveys, including consumer surveys, retail audits and terminal cotton consumption forecasting models.

The information collected can help the global cotton industry grasp the supply and demand changes in the cotton market and the future price trend.

Antai also can not give a clear forecast for the issue of cotton supply and price trend discussed by the industry all over the world, but he thinks cotton prices will be higher than before in the next 5 years.

His reasons are: on the one hand, the supply of all agricultural products is tight; on the other hand, global consumers prefer cotton products instead of chemical fibers, which will stimulate the demand for cotton in the consumer market to remain strong.

"In the future, the international cotton association, the US Cotton Corp and the entire US cotton industry will continue to do their utmost to maintain this strong demand.

Our series of cotton beyond your imagination in China is designed to promote natural fiber cotton, not just the promotion of American cotton. In addition, there are widely known promotional activities of the "Cotton U.S.A." brand, which will still benefit all cotton growers in the country, because only 50% of the American cotton can be hung in the fabric, and the other 50% can use other countries' cotton.

An Tai said.

Antai hopes that the Chinese and American businesses can work together to promote cotton and carry out various promotional activities from cotton field to fiber market to keep the demand growing continuously, so that every related enterprise in the supply chain can realize the maximization of interests through price increases.