s the export promotion arm of the NCC, Cotton Council International (CCI), is dedicated to increasing U.S. cotton exports of cotton, cottonseed and their products. With offices in Washington, Memphis, London, Hong Kong and Seoul, CCI plays a major role in strengthening key markets for U.S. cotton and cotton products in Europe, Asia, Latin America, the Middle East and Africa.
CCI continued to place a high priority on overseas market development – from its China executive delegation to its COTTON USA Orientation Tour for textile mill representatives throughout the world.
The highly successful COTTON USA program received a 27 percent increase in public support in 2003 This was primarily due to the increased farm law funding and the continued strong industry commitment, including the American Cotton Shippers, AMCOT, Supima and the National Cottonseed Products Association all of which pledged to increase their funding levels by 40 percent or more in 2003. The Southern Cotton Growers began contributing directly to the COTTON USA program last fall and renewed their pledge. The largest increase in industry funding came through a commitment from Cotton Incorporated to increase its contributions by $500,000 starting January 1, 2003. This represents a 25 percent increase for Cotton Incorporated, and further sets them apart as the largest single private contributor to CCI.
As a bonus, USDA awarded CCI $300,000 in new Global Based Initiative funding to promote the “Natural American Home” pilot project in Japan in 2003/04. If successful, the project, which showcases homes outfitted with 100 percent COTTON USA licensed home furnishings, may be expanded to other markets.
This financial backing achieves as much as a five-to-one funding leverage and is crucial with 65 percent or more of U.S. cotton fiber - and more than four million bale-equivalents of additional cotton yarn and fabric – now moving into export channels.
Regarding U.S. raw cotton exports, China became even more of a central player.
CCI President Bobby Carson led a COTTON USA Executive Delegation to China to find out how much cotton fiber China will import, and how much cotton product they expect to export to the United States and other markets, and under what conditions. The delegation’s fact-finding effort also was aimed at helping the NCC move its trade policy forward and formulate future policy.
In another effort to help the U.S. cotton industry stay current of the global competition, CCI put together a producer leadership team the NCC sent to Brazil. The team, led by NCC Chairman and Vice Chairman Bobby Greene and Woody Anderson, respectively, was accompanied by NCC staffer Gary Adams to develop an economic assessment of Brazil’s capabilities, production costs and support mechanisms to assist the United States in the Free Trade Agreement of the Americas negotiations.
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CCI also hosted a top-notch COTTON USA special trade mission from India, which has become the ninth largest export market for upland cotton fiber, and is a key market for Pima. The event solidified relationships with key Indian textile manufacturers. It also provided a framework for CCI’s experimental program with Cotton Incorporated - Cotton Gold Alliance - which is using the Seal of Cotton for the first time outside of North America to develop underlying demand for cotton fiber at the consumer level and reverse a trend of consumer preference for synthetics.
CCI’s 2003 COTTON USA Orientation Tour brought textile executives and cotton buyers from 13 countries – one of the most extensive groups ever - through the U.S. Cotton Belt. They were shown how U.S. cotton is produced, processed and marketed. The companies represented on the visit consume an average of 718,000 U.S. cotton bales annually.
CCI also conducted a large and very active program to promote U.S. cotton yarn, fabric and finished goods into export markets – particularly to the CBI and Andean countries.
For example, CCI organized a Sourcing Fair in Antigua, Guatemala to encourage business between U.S. cotton yarn and fabrics exporters participating in the Sourcing USA Program and Caribbean Basin Initiative companies. CCI also offered U.S. manufacturers opportunities to participate in value added buyers guides, searchable Web directories of U.S. manufactured cotton products, global trade shows to display their products, Sourcing USA summits and COTTON USA retail promotions. Manufacturers responded positively and increased their direct funding of these programs by 136 percent from 2002.
CCI even has activities in place to promote exports of cottonseed meal and linters.
