CURRENT ISSUE ARTICLES

NCC Joins on Pakistan, Afghanistan ROZ Letter

Insurance Discussed at Listening Session

Use of Approved Packaging Materials Urged

NCC Delegation Embarks for China

Sales, Shipments Stay Strong

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NCC Joins on Pakistan, Afghanistan ROZ Letter

The NCC joined with other organizations representing US textile manufacturers, fiber suppliers and employees on a letter to Secretary of State Clinton and USTR Ambassador Kirk conveying strong opposition to a proposal to expand Reconstruction Opportunity Zones (ROZs) in Pakistan and Afghanistan. The letter is available from the NCC’s website, www.cotton.org, in the member’s only area.

The new proposal calls for an expansion of previous ROZ proposals to cover apparel products highly sensitive to the US textile industry. In the letter, the organizations took the opportunity to remind Administration officials that the industry has not opposed reasonable legislation that would expand the ROZs on a limited basis but would strongly oppose any effort to expand the coverage to products which are already being exported by Pakistan in significant volume and which would threaten good-paying US manufacturing jobs.

"If this proposal were to be accepted, it would cause irreparable damage to the U.S. textile industry resulting in significant job losses," the groups said in the letter. "We understand and recognize the magnitude of the recent torrential flooding in Pakistan and the enormous human tragedy this disaster has caused. We believe, however, that the proper response to this situation is for the United States and other governments to continue their outpouring of humanitarian aid."

The groups said they supported a carefully crafted "Reconstruction Opportunity Zones" trade package for Pakistan that the House of Representatives already has approved and a similar bill that has been stalled in the Senate.

"These bills provide Pakistan with special tariff preferences for products constituting 74 percent of the volume they ship to the U.S. market, while preserving normal duty treatment on the categories critical to workers and producers throughout our hemisphere," the groups said …but "any expansion of the product or geographic coverage beyond the language included in the bills listed above would result in a significant loss of U.S. textile and apparel jobs and would force the domestic industry to strongly oppose such legislation."

Insurance Discussed at Listening Session

Sen. Chambliss (R-GA) recently hosted Risk Management Agency (RMA) Administrator Bill Murphy at a listening session at the U. of Georgia Tifton Campus. Also on the panel was Michael Moore, director of the RMA Regional Agency Office.

Ronnie Lee, a Bronwood, GA, cotton producer spoke to the panel about the challenges facing the cotton industry. Among several issues discussed, Lee mentioned the desire of many producers to reinstate a Group Risk Product, the need to implement industry-suggested changes to quality loss adjustments and that the industry looks forward to working with RMA as it creates a new Good Producer Discount.

Lee also noted the concern many producers are having with resistant weeds. He said even when all management practices have been implemented, fields still can get to an unharvestable state -- certainly a loss to the producer but not specifically covered under crop insurance. RMA was encouraged to review what tools may be available to producers who are caught in these circumstances.

During the meeting, Murphy announced that the Cottonseed Endorsement Pilot program would be available in all cotton states for the ’11 crop.

Use of Approved Packaging Materials Urged

Joint Cotton Industry Bale Packaging Committee Chairman Curtis Stewart sent a memo to ginners reminding them of the importance of using bale packaging materials approved by the JCIBPC and USDA’s Commodity Credit Corp. (CCC).

The Specifications for Cotton Bale Packaging Materials are published by the NCC on its website and can be downloaded at http://www.cotton.org/tech/bale/index.cfm.

The USDA form CCC-809, “Cooperating Ginner's Bagging and Bale Ties Certification and Agreement,” is a contract between ginners and the CCC to use only materials that comply with the specifications published by the JCIBPC. Form CCC-809 can be downloaded from the eForms page of the USDA website. With the USDA CCC agreement in mind, ginners are encouraged to purchase packaging materials from reputable sources and to make sure their bale packaging systems function properly before their first bale is ginned.

“We ginners should remember that bales wrapped and tied with materials other than those meeting the JCIBPC specifications can cause producers to be ineligible for CCC market assistance loans and other farm program benefits,” Stewart said in the memo.

The memo stated that because of the loan eligibility requirement, ginners need to know that an amendment to the specifications added an ultraviolet ray (UV) inhibitor (light stabilizers) requirement for polyethylene (PE) film bags in ’10. That amendment requires all polyolefin (plastic) bale bag manufacturers to include UV inhibitor additives in their bags.

When the change was made, the JCIBPC wanted to make it clear that outside storage was not the intent of the change and the committee made the following statement: “With no endorsement of outside storage, the JCIBPC recommends that all polyolefin (polyethylene (PE) film and polypropylene (PP) fabric) bale bags contain the same ultraviolet (UV) ray inhibitors (stabilizers)…”

The new UV inhibitor requirement applies only to bags that were manufactured after the specifications were approved by USDA and published by the NCC in June. PE film bags carried over from ’09 can be used in ’10 even if the bags do not contain UV stabilizers.

One way to make sure bale packaging materials conform to the committee’s specifications is to ask for proof that the requirements have been met. That proof can be provided in the form of a certificate of analysis stating that the packaging material complies with the published specifications for that material.

While a list of active bale packaging distributors is not published, the “JCIBPC Lists of Approved Manufacturers” can be viewed at http://www.cotton.org/tech/bale/index.cfm.

Some ginners may have the opportunity to use materials in JCIBPC experimental test programs this year. Because these materials may not meet current JCIBPC specifications, CCC will grant a variance for the materials included in those approved test programs. If a firm states that a packaging material is in a JCIBPC experimental test program, the claim can be verified by reviewing the “Participating Gin Warehouse Form” link at http://www.cotton.org/tech/bale/index.cfm. Go to the link for “2010 Participating Gin Warehouse Forms” for either bagging or bale ties at the bottom of the page.

Gins or firms with materials in test programs also may use these links to complete and submit online “Participating Gin Warehouse Forms” prior to placing the materials at gins. Firms also may email the information needed to complete the forms directly to NCC staff.

Firms with test programs may ask ginners for email addresses, tag lists for the bales wrapped or tied with experimental materials, and information about where the bales will be warehoused. This information is needed to complete the forms. Please direct your bale packaging and experimental test program questions to the NCC’s Dale Thompson at 901-274-9030 or dthompson@cotton.org.

NCC Delegation Embarks for China

NCC Vice Chairman Charles Parker, a Senath, MO, producer, is leading a US cotton industry delegation on a nine-day tour of China’s cotton and textile industries. Also participating are producers Shawn Holladay, Lubbock, TX; Richard Kelley, Burlison, TN; and David Dunlow, Roanoke Rapids, NC; along with ginner Kirk Gilkey, Corcoran, CA; and cooperative official Michael Quinn, Garner, NC.  Harrison Ashley, the NCC’s vice president of Ginner Services, is accompanying the group.

In a program jointly sponsored by the NCC and Cotton Council International, this will be the fourth leadership team to visit China. The other teams include those that toured China in ’06, ’07 and ’08. These exchanges, which include reciprocal trips to the United States by China leaders, are part of a memorandum of understanding with the China Cotton Assoc.

Sales, Shipments Stay Strong

Net export sales for the week ending Aug. 26 were 259,800 bales (480-lb). This brings total ’10-11 sales to approximately 7.1 million bales. Total sales at the same point in the ’09-10 marketing year were approximately 3.2 million bales. Total new crop (’11-12) sales are 190,800 bales.

Shipments for the week were 227,800 bales, bringing total exports to date to 909,700 bales, compared with the 682,300 bales at the comparable point in the ’09-10 marketing year.

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