Global experts discuss challenges affecting cotton sector

Rounding out the economic perspectives was Ron Insana, senior analyst for CNBC and a financial expert. Insana provided an optimistic outlook for the U.S. and global economies.

The industry, however, is still nursing the hangover of the run-up, most notably in the area of fiber substitutions made to help the downstream end of the chain maintain margins when cotton prices were high, and the difficulties of some companies to honor cotton contracts.

Addressing the former concern, Cotton Incorporated president and CEO J. Berrye Worsham urged attendees to stick with cotton, citing currently price stabilization and additional cost-savings that could be attained through efficiency opportunities in the chain’s manufacturing segments. Worsham shared top line results conducted by his company that concluded mills and weavers could achieve a 6 to 15 percent savings potential using current machinery and existing technologies.

During a panel discussion, Antonio Esteve, representing the International Cotton Association, explained how his organization is exploring disciplinary options to address contract sanctity issues, including downstream contracting.

Chris Callieri, principal for the consumer and retail practice of A.T. Kearney; and Marshal Cohen, chief industry analyst for the

NPD Group, Inc. each addressed consumer-related opportunities for cotton in separate presentations. Callieri identified consumer markets on the rise, including Peru, Mongolia and the Mid-East, in addition to the BRIC countries: Brazil, Russia, India and China. Callieri also suggested that there were immediate and significant opportunities for collaboration and cooperation across the textile supply chain.

The always-entertaining Cohen informed attendees that products that adapt to consumer needs -- rather than products to which consumers would have to adapt -- were on the rise. He further suggested that the “era of more” for consumers held great promise for cotton, alongside revitalized communications about cotton’s benefits.

The leadership of the U.S. cotton industry, Cotton Council International and Cotton Incorporated, in cooperation with the USDA, have hosted the Sourcing USA Summit on a biennial basis since 1999 in an effort to increase cotton fiber exports and further develop that export market.

The U.S. cotton industry and its allied industries are integral supporters of the Sourcing USA Summit. 

Cotton Council International