The House Armed Services Committee considered its version of the annual defense authorization bill.
The Committee draft included a provision that would have increased the acquisition threshold from $100,000 (inflation adjusted to $150,000) currently to $500,000 for Dept. of Defense (DOD) and Dept. of Homeland Security (DHS) purchases subject to the Berry Amendment. The Berry Amendment stipulates that DOD and DHS purchases of textiles, clothing, food, and other critical components must be 100% US content and produced in the United States.
A similar attempt to weaken the Berry Amendment protection occurred last year, but due to significant industry efforts, the provision ultimately was removed before the final defense authorization bill was approved.
In response to the inclusion of this provision again, the NCC, National Council of Textile Organizations and ten other groups sent a letter to all Committee members in support of an amendment sponsored by Rep. Jones (R-NC) to restore the original threshold for the Berry Amendment. The letter is on the NCC’s website at www.cotton.org/issues/2016/upload/16berrylet.pdf. Thanks to these efforts and the industry’s supporters in Congress, the Committee agreed to accept the Jones amendment as part of the bill that was reported out of Committee.
The NCC will continue to closely monitor both this bill as it moves to the full House for consideration and the Senate bill when it is considered to ensure the Berry Amendment is not weakened.
Hearing Looks at Production Cost Factors
The House Agriculture Subcommittee on Biotechnology, Horticulture and Research conducted a hearing to examine factors affecting farmers' cost of production.
Witnesses included Chuck Connor, president & CEO of the National Council of Farmer Cooperatives; Jeff Witte, secretary/director of the New Mexico Dept. of Agriculture; Maureen Torrey, a New York farmer representing the United Fresh Produce Assoc.; Kate Woods, vice president of the Northwest Horticulture Council; Richard Guebert, president of the Illinois Farm Bureau; Dale Murden, president of Texas Citrus Mutual; and Jay Vroom, president of CropLife America.
During the hearing, Subcommittee members received insights from witnesses on the different programs and policies affecting farm efficiency, productivity and profitability. Witnesses agreed that there are a number of factors driving up production costs including increased prices for seeds, crop protection products, fertilizer, machinery and new technologies. Subcommittee members and witnesses agreed that there are various government programs available to assist producers in addressing some of these costs, such as the research and marketing programs within USDA.
However, the witnesses noted the recent dramatic increase in the number of regulations and policies put in place by federal agencies, specifically EPA. Examples of such regulations are WOTUS and the NPDES Pesticide General Permit which have inhibited farmers’ ability to produce safe and affordable food and fiber for the world. In addition, witnesses explained that crop protection businesses that support American agriculture recently have seen serious deviations from the regular order, transparency and scientific integrity of EPA’s risk assessment-based pesticide review process, which has made it difficult to provide business predictability for producers and users.
All hearing participants agreed that due to the rising costs and the recent collapse in net farm income, farmers and ranchers will need every tool available to help minimize costs. Additionally, it was noted that Congress and stakeholders should work with government agencies to ensure no policies are enacted that would prevent farmers and ranchers from producing food and fiber in an economically feasible manner.
Participants in the '15-16 Emerging Leaders Program met with Congressional Members, their staff and key government agency officials in Washington, DC.
The '15-16 class' third and final training session began with briefings on cotton industry issues and international market development activities from the NCC's Washington Operations and Cotton Council International staff and an update from Monsanto, which sponsors the Emerging Program through a grant to The Cotton Foundation.
The group interacted with the agricultural legislative assistants for various Senators and Representatives. They were briefed by staff of the Senate and House appropriations and agriculture committees as well as representatives from the White House, EPA, the US Trade Representative's Office, the Dept. of State, and the Commodities Futures Trading Commission. The class also heard from USDA Acting Deputy Secretary Michael Scuse, and from officials with several USDA agencies, including the Farm Service Agency, the Natural Resources Conservation Service, the Risk Management Agency and the Foreign Agricultural Service.
Members of the '15-16 class included: PRODUCERS -- Rafe Banks, Clarkedale, AR; Brandon Brooks, Phoenix, AZ; Matt Coley, Vienna, GA; Paul Minzenmayer, Rowena, TX; and Brad Williams, Burlison, TN; GINNERS -- Phillip Kidd, Edmonson, TX; and Todd Waters, Pantego, NC; MERCHANTS -- Cory Barnes, Cordova, TN; and Ken Burton, Montgomery, AL; and WAREHOUSER -- Joe Cain, Bakersfield, CA.
Campaign Reaching Mexican Consumers
Cotton Council International and Cotton Incorporated launched a cotton generic campaign in Mexico – a leading fashion market in Latin America – to increase awareness of and preference for cotton among Mexican consumers.
The "Now You Know" digital campaign, which features well-known Mexican celebrities as spokespeople for cotton, includes a website, Facebook page, Twitter feed and blog presence, using video, key influencer discussions, and a range of engaging content about cotton’s benefits and uses.
According to studies carried out prior to the campaign launch, cotton is the preferred fiber among Mexican consumers for its functional benefits such as comfort, softness and quality. Furthermore, Mexican consumers spend about three hours per day on social media sites and social media usage is higher among younger consumers, who account for almost half of the Mexican population.
Mexico is a key US raw cotton customer having imported 871,000 US bales in the ’14/15 marketing year, with a US market share of 100%.
Global Cotton Market Issues Discussed
Cotton Council International’s (CCI) seminar on “Cotton – Global Market and Sourcing and Consumer Trends” in Hong Kong brought together more than 120 participants from along the cotton textile supply chain, including renowned manufacturers, brands and retailers.
CCI co-organized the event with the Hong Kong Assoc. of Textile Bleachers, Dyers, Printers and Finishers; Hong Kong Cotton Spinners’ Assoc.; Sustainable Fashion Business Consortium; Textile Council of Hong Kong; and the Hong Kong General Chamber of Commerce.
The seminar kicked off with a presentation from Ray Shiu, chairman of the Hong Kong Assoc. of Textile Bleachers, Dyers, Printers and Finishers and COO of Wah Fung Group – an important COTTON USA licensee. He discussed the business growth of global retailers such as H&M, GAP, Uniqlo and Ralph Lauren after a fragile economic recovery in ’14.
Felix Chung, a member of the Legislative Council of Hong Kong for the Textiles and Garment constituency, elaborated on the new business model and sourcing trends under the influence of e-commerce. Jane Singer from Inside Fashion detailed the new buying behaviors of the consumer in the online marketplace.
Participants included: 5.11 Tactica Sourcing, Advanced Denim, Asia Denim Innovation Alliance, Burberry, Carter’s, China Red Textiles, Coats, Cotton Incorporated, Dorway Garment, Dystar, Easy Link Cotton, Esprit, Esquel, Everlight HK, Fang Brothers, Fantastic Garments, Ford Glory, Fortune Base, Hang Mee Sipp, HK Productivity Council, HSBC Global Assets Management, Hua Fu, Jim Fung, Levi’s, LF Sourcing, M&S, Mintilex Int’l, Natalia Fashion, New Way Fashion, New Jersey, Next Sourcing, Perry Ellis, Quiksilver, Ralph Lauren, Russell, San Yang, Shenzhen Topson, Sky Winner, TAL, VF Wah Fung and Weave Services.
Sales Steady, Shipments Strong
Net export sales for the week ending on April 21 were 76,800 bales (480-lb). This brings total ’15-16 sales to approximately 8.4 million bales. Total sales at the same point in the ’14-15 marketing year were approximately 10.8 million bales. Total new crop (’16-17) sales are 1.2 million bales.
Shipments for the week were 266,500 bales, bringing total exports to date to 5.9 million bales, compared with the 7.5 million bales at the comparable point in the ’14-15 marketing year.
