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A selected group of U.S. cotton
producers and Asian textile
representatives found an
abundance of common ground
recently at the second annual
Certified FiberMax Cotton
Quality Summit in Singapore.
The conference, sponsored by Bayer CropScience,
attracted nearly 150 members of the global
cotton industry for a four-day networking and
information-sharing event from June 28 to July
1. Attendees represented every spectrum of the
global cotton trade, including growers,
merchants, mills, trade associations, consulting
firms and government entities.
“This is the communication that we need today to
make sure these growers understand what you're
saying, and what your concerns are, as they go
back home and interact with other growers,”
said Dr. O.A. Cleveland Jr., addressing the mill
representatives and spinners in the audience.
Cleveland, a long-time U.S. cotton industry
veteran, professor emeritus of Mississippi State
University and a marketing specialist moderated
a panel discussion on June 30 that included the
perspectives of four U.S. growers and ended with
a lively question-and-answer session.
Growers on the panel discussion; all of whom
have grown FiberMax variety, acknowledged that
the fibre quality is an increasing concern for
them. The four cotton growers from the United
States in the panel were Jimmy Brinn Jr. from
North Carolina, Sammy Means (ginner) from West
Texas, Bill Weaver (grower) from Arkansas and
Cliett Lowman (grower) from South Texas. During
the panel discussion session, cotton growers
shared information about production and ginning
of FiberMax and how they maintain the quality of
FiberMax. Finally, how they maintain it through
the processes such as production, harvesting and
ginning.
During the panel discussion
Jimmy Brinn said, “FiberMax
varieties have shown very good
performance over time. Producers
in my area are concerned about
the quality of cotton. We ensure
the select quality and also we
try to ensure timely harvest.”
Sammy Means, General Manager
of Ropes Coop Gin, a
farmer-owned operation in
Ropesville, Texas said about the
process of ginning the cotton
and cotton production in West
Texas, “We were introduced to
FiberMax about eight years ago.
We gin cottons through a
co-operative owned by the
farmers. Last year we ginned
about 90 thousand bales. About
65 percent of total plantation
in West Texas is FiberMax.”
“Five years ago, the percentage
of FibreMax, out of total
plantation was only 10 percent,”
Sammy Means said, adding,
“However, the quality of the
FiberMax varieties has come to
be quite acceptable to the
producers. This has also led to
a growth in production in the
area.” “In Arkansas
(Mississippi), cotton and
soybean are the major crops
produced in the region”, Bill
Weaver, a farmer of Edmondson,
Ark informed the panel at the
beginning of his discussion. He
said, farmers of his area were
in contact with a mill of North
Carolina several years ago but
they were failing to meet the
quality mark of that mill by
producing traditional cotton.
“At a time like that we were
introduced to FiberMax varieties
which were of very high quality
and met the demand of the mill,”
Bill Weaver said adding, “ It
has been a cultural
transformation for the area to
shift towards FiberMax from its
traditional cotton production.”
Cliett Lowman lll, a farmer
from Texas cited the background
of the cotton production in the
region at the beginning of his
speech. “South Texas is a dry
land and we had been in the
cotton business since the civil
war days,” Cliett Lowman said
adding, “We were introduced to
FiberMax 5-6 years ago.” He said
that the South Texas community
is arguably the largest group of
cotton growers in the United
States. This area also has the
largest family owned farms in
the US who have been
traditionally engaged in cotton
production.
At this point, Cleveland, the moderator
emphasised that it was very clear that quality
of cotton depends on the quality of seeds. If a
grower began with quality seeds like those who
were participating in the discussion panel who
chose FiberMax varieties, the result would be
better yield and more money.
He recalled the history of US farm program, “The
US farm program, at times, send very poor price
signals to US cotton growers. The farm program
is structured in many cases in such a way that
the grower thinks in terms of producing
pounds/Kg of cotton, not in terms of quality.”
Cleveland, however, citing the present scenario
said, “the movement towards producing high
quality cotton varieties has taken off and it is
growing and expanding.” He added that the
present scenario is much harder as farmers who
do not grow quality cotton, will loose the
business.
“The
US growers are beginning to learn more and more
about the necessity of quality production. They
are at the crossroad where some farmers are
naturally going out of business as they are not
changing from their traditional methods of
cotton production and are not moving towards
quality production,” Cleveland said. In
conclusion he said, “Thus it will be those, who
aspire for quality, will take over those lands
for cotton cultivation in the future.”
During the lively question and answer session,
members of the Asian spinner market asked a
number of questions focusing on the intricacies
of U.S. cotton production and marketing.
“What is the impact of direct payment in
production of quality cotton?” asked a spinner.
In answer of that question, a grower replied,
“We receive premiums for our qualities based on
government schedule. About the direct payment,
he said, “the more we grow higher quality
cotton, the more we receive premium.”
The
moderator Mr. Cleveland further commented on the
matter. He said, “The direct payment is kept
roughly to 6-8 cents/lb. That is the maximum a
grower can get.” Cleveland said, “
That direct payment is not paid on the yield
(how much a farmer grows that year), it is
actually paid on a historical yield that goes
back to the 1970s, that does not even relate to
the yields that he grow today. It is simply a
government subsidy and it is small enough not to
have an impact on the agronomic aspects of
cotton production.”
“However, the market price account for depending
on the yields and loan schedule. This will
account for about 75-80 percent of the revenue
that the American cotton growers will receive.
It is the price that dictates the agronomic
decisions made with respect to varieties that
are planted and how you manage your crops,”
Cleveland the expert said.
A
spinner wanted to know why cotton from South
Texas is better than those of other areas in
Texas. He inquired if the ginning and picking
process contributed to the difference between
the cotton produced in West and the South Texas.
In
answer, Mr. Lowman replied, “The cotton we
produce in South Texas is really better than
those in other areas of Texas as we have
introduced the FiberMax varieties and the SJV
varieties over the past years.” Regarding the
ginning process he said, “The ginning process is
basically the same. Although there is sometimes
what we call a hired ginner but it is not much
of economic profit. Ginning itself must be
managed to the extent the cotton production is
managed.”
Another question that was raised was, would the
American farmers like to grow cotton if the
government subsidy is not there. What would be
the economic price to continue cotton production
and what the growers would consider their
break-even price was also asked.
A
grower replied, “That is up to individual
operations that depend on cost of production.
However, it is likely that quite a number of
operations will close down.” The moderator of
the panel discussion answered, “
due to fact that cotton is produced in different
regions, price expectations are different.”
Regarding the subsidy, a grower said, “The
subsidies that we receive have made it possible
during recent past to grow cotton.” He
continued, “In some areas cotton production is
relatively a new activity. So, the new Farm Bill
allowed those farmers to set a cotton base for
acreage.
He praised the Farm program, “
Given the present low prices, producers would
not be able to grow cotton. In Texas the soil is
rich; plants grow very big with moderate cost in
insecticides and higher seed cost. Under current
farm programmes, our breakeven is somewhere in
the mid 40 c/lb. Without Farm Program, it would
be closer to below 60 c/lb.”
“If we were to lose farm subsidy program and we
are able to continue cotton production, we would
see a drop in our quality. This is because it
costs more to grow better quality cotton,”
the grower said. He explained the process of
growing better quality cotton. “It starts from
cost of seed, management at the highest level to
ensure that inputs are given to match the
requirements, extra fertilizer. So the quality
does cost. As long as subsidies are there,
farmers know that they will be paid for what
they are spending. If production is to be
tightened, quality will suffer,” the grower
opined.
On
this issue the moderator commented, “The
American cotton farmers know that quality has
become important. Although there are some
barriers in their mindset in moving towards
quality, it is good news that they have started
to move in the right direction.”
In
answer to queries on seed varieties and uses of
FiberMax, another grower who participated the in
panel discussion replied, “We do maintain that
segregation in growing and maintaining the
varieties. However, most of the producers would
grow one variety to avoid mixtures of
varieties.”
Cleveland in answer to a question said, “Cost of
cotton stripper is US$125,000 and cost of cotton
picker is US$300,000. There are also other
reasons why West Texas uses cotton strippers.
The climate condition is also a major factor.
The price structure in the US market permits the
growers to use strippers rather than pickers.”
The
weather in West Texas is generally much drier
than that of South Texas. The region usually has
a good harvest season. Strippers are worthwhile
for growers in the Western region. In West
Texas, there are seasonal storms. However, the
West Texan cotton producers have storm proof
varieties.
The
Moderator replied to another question regarding
the production of FiberMax, “The FiberMax
varieties have long staple. Therefore, special
efforts must be made to make sure that the brand
could be followed and maintained. It is the
cornerstone of the FiberMax program.”
Bayer CropScience, a subsidiary of Bayer AG with
annual sales of about EURO 5.8 billion (2003),
is one of the world's leading innovative crop
science companies in the areas of crop
protection, non-agricultural pest control, seeds
and plant biotechnology.
The
company offers an outstanding range of products
and extensive service backup for modern,
sustainable agriculture and non-agricultural
applications. Bayer CropScience has a global
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dealers and consumers.
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