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International Report

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.

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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