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Relevance of Price Information to the Cotton Industry

Don Ethridge, Darren Hudson and Eduardo Segarra


An understanding of the role of price information to the cotton industry is not widespread, despite its relative importance. This paper examines the role of price information to the efficient operation of the cotton industry, the objective being to demonstrate the implications of incorrect price information. Examples from previous research and case studies on variety selection, ginning, contracting, and mill purchasing are used to show that incorrect price information can have implications on both the operational and pricing efficiency of the cotton market. Incorrect price information also has implications for broader issues such as trade, international competitiveness and government policy.

Reprinted from Proceedings of the 1998 Beltwide Cotton Conferences pp. 325 - 329
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998