Industry
News
Study Shows Cotton Preferred By Consumers Worldwide
According to the most recent Global Lifestyle Monitor, a survey conducted by
Cotton Incorporated and Cotton Council International, a strong representative
sample of global consumers overwhelmingly preferred cotton.
Some 60% of consumers surveyed said they prefer to wear clothing made of cotton
rather than other fibers. Consumers in nine countries, including Brazil, China,
Colombia, Germany, Hong Kong, India, Italy, Japan and the United Kingdom were
interviewed for the survey, which updates the findings from the last GLM
conducted in 2001.
Pakistan Cotton Planting Surpasses Target
Pakistan cotton sowing for this season has exceeded last year's plantings by
6.3%.
Ghana's Cotton Producers Make Plea For Farm Inputs
More than 25,000 cotton farmers in Ghana's Northern, Upper East and Upper West
Regions have appealed to the management of the Ghana Cotton Company to provide
them with inputs including fertilizers and insecticides, to enhance production
of the crop.
West Australian Government Blocks GM Cotton Plans
The Western Australian Government has blocked plans for a genetically modified
cotton industry in the west Kimberley region. New South Wales company Western
Agricultural Industries has spent $7 million over the past six years developing
plans to grow up to 200,000 hectares of commercial crops, using GM cotton as a
base.
But, following intense lobbying from Aboriginal and environmental groups, the
State Government has decided not to extend its memorandum of understanding with
the company.
World
Trade
Tanzania
To Pay $9.5 Million In Cotton Subsidies
Tanzania will pay US$9.5 million to subsidize cotton farmers in the country
during the 2004/5 season, following the dramatic fall of the crop's prices
announced last month.
The government reached this decision in response to the fall in cotton prices
globally caused by an oversupply recorded during the cotton season of 2004/5,
said Tanzania's Prime Minister Fredrick Sumaye.
This will be the first subsidy ever provided by the Tanzanian government. It
will enable the country's cotton farmers earn about 26 U.S. cents per kg, an
increase of 2.5 U.S. per kg above the market price after the price cut declared
early last week in Tanzania's central cotton belt. Cotton prices in Tanzania
have fallen from 30 U.S. cents to 25 U.S. cents per kg since June.
Tanzania's cotton sector is projected at a bumper crop of 500,000 bales, far
higher than in 2003/04.
Textiles
Mauritian
Textile Firm Cuts Jobs
One of Mauritius's oldest textile operators - Floreal Knitwear - last week shut
seven factories and cut 900 jobs.
The company has five remaining factories in the country and employs 3,100
people.
High labor costs have made it more profitable for Floreal Knitwear, which
produces textiles for BHS and Littlewoods in the UK, to make certain goods
elsewhere, company officials said.
Nicolas Maigrot, executive director at Floreal Knitwear, said the emphasis of
the Mauritian business was now on producing value-added products, which require
less labor.
"Basic products are no longer competitive in Mauritius, it is very
difficult to maintain value as before," he said. "We see our
relocation as complementary to our activity in Mauritius. It is not a
substitute, it is complementary."
The Mauritian textile industry currently employs about 80,000 people, down from
90,000 last year. Some textile makers are moving to Madagascar for its cheaper
labor. Industry sources anticipate up to 30,000 more layoffs in Mauritius before
the situation stabilizes.
Alps Industries To Build New Plant
Alps Industries Ltd, has announced plans to build a spinning plant in Kathau,
Jammu, India's northernmost state, to take advantage of new opportunities
emerging the export market after quotas are eliminated in 2005.
"We examined various locations in Himachal Pradesh, Jammu and Kashmir and
Uttaranchal before finalizing Kathau," said Sandeep Agarwal, the company's
managing director. "As a spinning plant is a high power consuming facility,
we were looking for states that could provide good quality power at cheaper
rates."
The plant will have produce 45 tons per day, and serve both the export and
domestic markets.
Alps has a 35% market share in the window covering sector, and produces the
"Vista" brand of home furnishings, which are mainly exported to North
America.
"Our immediate focus is now on transforming the company into an outsourcing
hub. We see the market for outsourcing in this sector expanding in India, as
retail chains in Europe and North America are increasingly looking at India for
outsourcing," Agarwal said.
The company also operates an integrated textile mill at Delhi, which produces
cotton materials used in home furnishings.
Dan River To Close Two More Plants
Looking to cut costs and pare its losses as it works it way through bankruptcy
and restructuring, Dan River Inc. announced plans to further overhaul its U.S.
manufacturing operations.
The company will close a finishing and sheet sewing facility in Danville, VA,
and a warehouse in Portsmouth, VA, operated by its Import Specialists division.
The diversified textile producer said the closings will take place during the
fourth quarter of this year and result in the loss of about 275 jobs.
Cotton
Promotion
Cotton
Incorporated Launches $5 Million Print Campaign
Cotton Incorporated, the research and marketing company that represents cotton
and cotton products in the United States, this month will launch a $5 million
print campaign, touting the importance of the fiber in women's apparel.
The campaign, which will consist initially of six print ads, targets women age
18-34. Six more ads are in production for the next phase of the campaign.
The images are created to look like garment hangtags that show women in cotton
outfits in a variety of settings with clever copy.
One shows a woman wearing a fashionable outfit sipping a drink in the middle of
a city street with the tag, "Fashion Rule No. 1: Ignore Fashion
Rules." A second image shows a woman in jeans and a blazer with her dog
outdoors sitting on a rock and the tag, "Jeans are like men. The more you
break 'em in, the better they get."
The Seal of Cotton and additional copy such as "Always Stylish" or
"Aged to perfection" drive home the message.
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