Interview with Don Cameron

Don Cameron
Don Cameron

Historically, the greatest consumer demand for Pima cotton has been in the U.S. market.
In an interview with Fibre2Fashion Correspondent Cindrella Thawani, Don Cameron apprises that US cotton industry is resilient with the challenges it faces, also believes that China’s cotton reserve is upsetting evenhanded global cotton industry. Synopsis: Supima name derived from Pima, and Pima is a kind of American cotton. Founded in 1954, Supima is the promotional organisation of the American Pima cotton growers. Its key purpose is to encourage the increased consumption of American Pima cotton around the world. Currently, Don Cameron serves as the Chairman of Supima. Excerpts:

How do you perceive China’s management for cotton reserves that can impact global cotton market view?

Purchases made for China cotton reserve is very troubling as well as exceptionally disruptive to a delicately balanced global cotton industry. Recent purchases and price levels at which cotton was purchased, created a number of problems for the global cotton industry in China and abroad. Further, absorption of purchases into the reserve has a synthetic effect of reducing supply without actually consuming cotton. Then, when it is released it will have a reverse effect that will negatively affect the cotton prices globally. Price levels at which the cotton is being purchased are also far above the current world price, thereby artificially supporting Chinese growers with high prices and potentially setting a stage for excess production next year, if the same price supports are planned. For the domestic spinning industry in China, this is a nightmare, as it makes their products uncompetitive as a result of the higher prices. Even, if a Chinese spinning mill has quota for cotton imports they are faced with a 40 percent duty to import the fiber. However, if the yarn is imported, that is eligible to be imported duty free. This is a challenging situation for the Chinese spinning industry.

Do you think that the model for organic cotton does not really work, owing to the challenges associated with it?

Actual demand for organic has never matched the level of interest by the press or retailers. Consumers prioritize many factors such as brand, styling, color and price ahead of organic when making their buying decision. Moreover, offer of organic Pima cotton in the market have been met with scant interest.
Published on: 22/11/2012

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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