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Cotton production updates 2007

Feb '07
According to official data, as of January 1, 2007, Uzbekistan's MY 2006/07 final seed cotton harvest is estimated at 3.63 million metric tons (MMT), which is 90,000 MT lower than in Post's previous report, and almost 120,000 MT lower than estimated 2005/06 seed cotton production.

Generally, weather conditions during vegetation and harvesting favored MY 06/07 crop conditions and allowed farmers to reach the state target. Based on seed cotton production numbers, Post therefore forecasts Uzbekistan's MY 06/07 lint production at 5.36 million bales.

Uzbekistan currently utilizes about 20-23 percent of domestic cotton production depending on the crop results. Two years ago GOU announced its intent for the domestic textile industry to process 50 percent of lint by 2008.

Although this goal is highly optimistic, based on the current pace of local textile industry development and the increasing number of new textile facilities, Post believes that domestic utilization of lint probably will increase by 2-3 % each year.

The government aims to modernize, re-equip, and complete reconstruction of dozens of textile plants, as well as to establish new enterprises. Plans to carry out about 100 investment projects valued at USD 1.2 billion, mostly in the textile industry, have been announced. The government also has simplified tax incentives for manufacturers, geared in particular toward production of higher value-added products.

There are no any noticeable changes in the pattern of cotton exports. At the International Uzbek Cotton Fair held last October in Tashkent, Uzbek cotton exporting companies reportedly concluded framework contracts for the sale of 7.8 million bales of Uzbek lint.

Of this total, 4.58 million bales are planned to be exported from 2006 crop and the remaining contracted volumes will be shipped from 2007-2008 crops. In MY 06/07 the biggest buyers of Uzbek cotton are trading companies from China, UAE, Singapore, Bangladesh, South Korea and Russia.

Based on the production forecast, MY 06/07 lint exports are forecast at 4.62 million bales.

Click here to view table:

United States Department of Agriculture Foreign Agricultural Service

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