Interview with Jimmy Webb

Jimmy Webb
President
Cotton Council International

Cotton still maintains a competitive advantage, as consumers prefer for natural fibers such as cotton.

With Fibre2Fashion Correspondent Cindrella Thawani, Jimmy Webb talks about the challenges that are affecting the production of cotton, globally as well as U.S. cotton industry. Synopsis: COTTON USA is the export promotion program of Cotton Council International (CCI). Besides, it promotes cotton fiber and manufactured cotton products of U.S. in various markets across the world. Jimmy Webb currently serves as the President of National Cotton Council (NCC), an export promotion arm of Cotton Council International (CCI), and he has been elected in February 2012. Webb also serves as a delegate to the Cotton Board, as a director of Southern Cotton Growers, as president of the American Peanut Marketing Association. Moreover, he was the past Georgia chairman of the NCC’s American Cotton Producers and now chairs the NCC's Conservation Task Force. Webb earned a Bachelor of Science degree in Agriculture from the University of Georgia. He was the Lancaster Sunbelt farmer of the year from Georgia in 2005 as well as in 2009 winner of the young peanut farmer of the year given by the Georgia Peanut Commission. Excerpts:

How do you see export and import scenario of the U.S. cotton industry?

Recent USDA estimates U.S. cotton production at 15.57 million bales and exports at 11.60 million bales for the marketing year 2011-12. China accounts for more than one and half of U.S. cotton exports. Domestic consumption in the United States is estimated at 3.40 million bales and ending stocks are estimated at 3.20 million bales. For 2012, imported cotton textiles in United States are estimated to raise 19.2 million bale equivalents. Imported goods make up the largest portion of U.S. net domestic consumption, and a significant portion of imported goods contain U.S. cotton. Since much of what the U.S. exports to the NAFTA (North American Free Trade Agreement) and the CBI (Caribbean Basin Initiative) countries is in the form of fabric and piece goods that come back in the form of finished goods, the trade gap is not as wide as implied by gross imports and exports. Globally, uncertainty over China’s management of its reserves is an important point to consider in terms of imports and exports. World cotton production for the 2011-12 marketing year is estimated at 123.07 million bales and world domestic consumption is estimated at 106.12 million bales, according to USDA estimates. USDA also estimates world imports at 43.40 million bales, exports at 43.42 million bales, and ending stocks at 67.32 million bales.

What factors should be taken into consideration to promote organic cotton? Please share your overview.

It is important to note that both conventional and organic production practices have more things in common than different; the fiber is no different. The terms organic and conventional, only refer to the method by which the cotton was produced and not their qualities. Conventional and organic cotton have similar fiber lengths, strength, micronaire and other properties of cotton fiber but organic cotton can be less uniform. There are strict standards in United States for organic cotton, and it is not easy to become a certified organic cotton operation. The world production of organic cotton currently accounts for less than one percent of the total cotton produced globally. Representing more than 99 percent of global cotton production, conventional cotton is what drives the market. More sustainable agricultural production must balance a growing economy, protection for the environment, and social responsibility. Moreover, both conventional and organic cottons from the U.S. can achieve this balance sought for sustainability. Mills, brands, retailers and consumers can be assured that the U.S. cotton industry supports sustainability and the goal of environmental, economic, health and social responsibility for production agriculture. Cotton is the fiber that is perceived to be the most environmentally benign fiber, while at the same time being the world’s most comfortable fiber.

What are those challenges that are affecting the production of cotton, globally as well as in US? Please interpret.

Competition from man made fibers and cotton prices continue to be important factors to cotton production worldwide. However, cotton's share of the retail market is projected at approximately 40 percent in 2012. Cotton still maintains a competitive advantage, as consumers prefer for natural fibers such as cotton. Results from the Global Lifestyle Monitor™ show that 58 percent of consumers would pay more for clothes made of natural fibers such as cotton, and about half of consumers surveyed worldwide believe that better quality clothes are made from 100 percent natural fiber such as cotton.

As per the data released by the US Department of Agriculture, regarding a fall into the cotton prices that is likely to remain under pressure till new significant demand enters the global market. How do you see its impact on the industrial output to US as well as into world-wide markets?

The drop in cotton prices records high in March 2011 points to a possible stabilization in prices, and at a higher price than before the recent volatility. This should positively affect producers cotton planting decisions, which will keep an adequate supply in the pipeline so that we do not return to the very tight supply situation of a year ago. Another factor with tremendous potential to impact the global cotton market is China’s management of its reserves. China has already purchased more than 11 million bales of cotton into government-held reserves in an effort to support local prices to the grower. Knowing that China has rebuilt its depleted reserves should keep upward price pressures in check because it is predicted that China is likely to release reserves onto the market, if prices spike. In terms of demand, CCI consumer research consistently shows that the underlying consumer preference for natural fibers, such as cotton, is very strong worldwide. We are confident that consumers in both developing and developed markets will express that preference through purchases if the products are available on the shelf and are price competitive.

Please detail, how is your supply chain marketing program helpful for buyers and sellers, globally?

CCI’s innovative Supply Chain Marketing (SCM) program works forward from the spinner/weaver to facilitate business relationships and information exchange between U.S. cotton-rich textile industry and garment manufacturing companies worldwide. COTTON USA SCM program helps buyers and sellers enhance their business by identifying new suppliers and customers, as well as supporting the sales of COTTON USA-labeled products at retail through a wide range of marketing activities. Activities range from point-of-sale promotions to multimedia consumer campaigns and public relations. SCM is a highly innovative program of integrated resources, events and activities designed to match buyers with leading suppliers of U.S. cotton products. The SCM Program sponsors a variety of activities throughout the year, such as Buyers Tours, conferences and trade shows.

Please explain the significance of the COTTON USA Mark. Besides, tell us how it is associated with the CCI?

The COTTON USA Mark is a worldwide registered trademark launched in 1989, as well as it is the foundation of CCI’s program. Products labeled with the COTTON USA mark send a strong message to consumers, as this product will provide natural comfort and is of high quality. The mark clearly identifies superiority, 100 percent cotton products made from 50 percent or more U.S. grown cotton if sold outside United States, and 100 percent of the cotton must be made from U.S. cotton fiber if the product will be sold at retail in United States. In 2011, about 101.2 million products worldwide were labeled with the COTTON USA Mark. And support given to COTTON USA Mark licensees includes: • Marketing and graduation programs for advertisement, sales promotion and PR for COTTON USA labeled products. • Support in the worldwide sourcing of cotton products. • Worldwide networking of business contacts via COTTON USA information tours for industry and trade, trade fairs, seminars, conferences, etc. • Quality and economic information on cotton (via a fax and e-mail service).

CCI actively participates into its various campaigns, which have been held successfully in some of the Asian countries recently. Please enlighten us about your upcoming campaigns?

CCI launched its “COTTONSCAPE” advertising campaign in India this year, featuring a series of print advertisements capturing cotton moments at various stages in people’s lives. The advertisements appear in leading fashion and lifestyle magazines throughout India. In China, our COTTON USA “Naturally Color Your Life” campaign was inspired by the colorful “American Quilt” concept. A mini-website, www.uscottonlife.com, was launched to showcase all the ways cotton fits into a natural lifestyle in addition to implementing a series of progressive campaigns to engage licensees, consumers and celebrities. In Europe, the stylish COTTON USA advertising campaign promotes the luxurious benefits of U.S. cotton, including its high fashion appeal and usage in home furnishings. In Thailand, Taiwan, Korea and Japan, CCI’s annual Cotton Days highlighted U.S. cotton and featured industry leaders, press interviews and celebrities. Cotton Day Thailand kicked off CCI's Teddy Bear Ambassador campaign, enlisting COTTON USA licensees and 27 brands. Cotton Day Taiwan featured a TV commercial launch by singer-songwriter fan and a sold-out concert for the performer SHOW. Cotton Day Korea enlisted a top designer and celebrity to display "Cotton Contemporary," a vision of cotton as fashion on the runway. Cotton Day Japan featured three celebrities who received awards for their contributions to cotton promotion. In addition, Miwa, CCI Japan's spokesperson, sang her newest single "Cotton Season." COTTON USA is also active in the Western Hemisphere through sourcing fairs, trade shows and consumer events.

Published on: 04/07/2012

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.