Cotton output in Southern Hemisphere down 2.3mn tons

02 Mar '06

2 min read

The International Cotton Advisory Committee released the cotton production of Southern Hemisphere in 2005/06. It stated that the cotton production down significantly in 2005/06.

Cotton production in the southern hemisphere is estimated at 2.3 million tons, down 13 percent from last season, and should account for only 9 percent of the world's 2005/06 crop, down from 10 percent in 2004/05 and 11 percent in 2003/04.

Cotton production is estimated down significantly in Argentina to 130,000 tons (-10 percent) and Brazil to 990,000 tons (-24 percent) due to drops in planted area. Dry conditions in Argentina delayed and reduced cotton plantings.

In Brazil, changes in the exchange rate increased production costs and made even less favorable the below-average world prices at planting time; in addition some producers faced difficulties in obtaining loans from banks to finance production costs. Cotton production is also expected to drop in Australia to580,000 tons (-12 percent) mainly because of an expected decrease in yield.

However, production is forecast to increase by more than 50 percent in Zimbabwe to 115,000 tons, thanks to increases in both area and yield, because the supply of seeds and producer support from the ginning industry improved.

Cotton production in Tanzania is expected to increase to almost 130,000 tons because better distribution of inputs encouraged producers to increase cotton area.

World cotton production is estimated at 24.9 million tons in 2005/06, down 5 percent from 26.3 million tons last season. 2005/06 world cotton consumption is estimated at 24.4 million tons, up 3 percent from 2004/05. As a result, world ending stocks are expected to rise to 11.3 million tons in 2005/06.

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