I am pleased to have an opportunity to update you on some of my thoughts on CCI?s COTTON USA activities. After a few remarks we will show you a video that highlights some of the significant events of the past months of the COTTON USA program.
First let me talk about the importance of exports to our industry.
- Last year we exported 11 million bales, or 54 percent
- This year the USDA forecast is for 11.2 million, or 61 percent
- Meanwhile you heard the forecast for domestic mill use
What does this mean for our industry? We will need to:
- Continue to export well over 50 percent of our crop, or we will have to decrease our production
- Greater emphasis on export promotion for both cotton and cotton products
What are some of the factors that will make this happen or not? Need to:
- Maintain competitiveness provisions of legislation now in place
- Vigorously pursue trade policy initiatives, particularly for market access to China
- Maintain quality, reliability and deliverability of our cotton
- Maintain strong export financing programs for cotton fiber, and yarn and fabric
- Foster underlying consumer demand for cotton products versus man-made fiber; and
- Enhance our support of export promotion programs ? particularly CCI?s COTTON USA program
For CCI specifically:
- Added $764,000 of MAP out of an available $10 million as a result of the new farm bill; anticipate an increase of about $314,000 of FMD over last year?s budget ? although currently we don?t know the exact amount
- Added support from industry ? mention and thank Cotton Incorporated for added $500,000 commitment for 2003 ? potential added commitments from ACSA, Supima and AMCOT
- Support initiatives such as the Cotton Gold Alliance (mention launch in October around ITMF) ? we need to build underlying demand for cotton versus man-made fiber if cotton is to prosper
- Support and be involved in COTTON USA events ?
- Involvement in Turkey conferences, upcoming Summit in Scottsdale
- Broader support for cotton yarn and fabric (such as Miami Sourcing Summit, trade shows and CBI initiative); and
- CCI's broader efforts to promote cottonseed meal and linters for crushers
These are just a few thoughts as we look to the future.
The more involved I get in CCI?s program, the more excited I get about the opportunity and the need to make a difference in moving our fiber and products into export markets.
Thank you for your support. I hope through my words, and by looking at the solid programming captured in the video, that you will share that excitement.
