Egyptian cotton production in MY 2019-20 may drop over an expected reduction in the harvested area. Moreover, the cotton prices of MY 2018-19 could also discourage farmers from planting cotton in MY 2019-20. Yet, cotton exports jumped by 57.1 per cent in MY 2018-19 over MY 2017-18; the trend is expected to continue. A Market Intelligence (MI) report from Fibre2Fashion looks at the cotton production, export numbers and the global demand for Giza Cotton.

Egypt, one of the leading cotton producers and exporters, supplies cotton of long and extra-long staple length. Giza, one of the finest varieties of Egypt, is grown exclusively in that country and manually harvested. The use of defoliants and chemical products are avoided during the production. 

In marketing year (MY) 2018-19 (August to July), cotton area harvested grew by 48.4 per cent to 1,35,000 hector (ha) from 91,000 ha in MY 2017-18. The increase in area harvested in the MY 2018-19 boosted the total production to 4,50,000 bales (each 480 lb in weight) with a growth of 50 per cent over the previous MY. The Egyptian cotton production in MY 2019-20 is expected to drop over an expected reduction in the cotton harvested area. The cotton prices of MY 2018-19 could discourage farmers from planting cotton in MY 2019-20.

Cotton production and price turbulence

The cotton harvested area and cotton production in the country from MY 2013-14 has fluctuated year on year. According to the Office of Agriculture Affairs, cotton production in 2018-19 remained at a higher level with an increased cotton harvested area. Improved cottonseed varieties with higher yields also supported the production in MY 2018-19.

The cotton harvested area and the cotton production are expected to plunge in the coming years as farmers have received comparatively less amount per bale in MY 2018-19. In MY 2013-14, the cotton harvested area and cotton production was 1,30,000 ha and 4,35,000 bales. In 2018-19, the respective figures were estimated at 1,35,000 ha and 4,50,000 bales with a growth rate of 3.9 and 3.4 per cent over 2013-14. The cotton harvested area and cotton production in Egypt are forecast to plummet by 20.7 and 17.11 per cent at 1,07,000 ha and 3,73,000 bales in MY 2020-21.

GRAPH 01: Cotton Production (1000 "480 LB BALES")

Source: USDA & TexPro