It is indeed an honor for Schlafhorst and a privilege for me to lead off the discussion of cotton fiber quality and marketing this morning. I beg your indulgence if time does not permit me to explain in detail every chart or table in this presentation, but we are providing handouts for you with the complete data and figures.

Since 1985 the Beltwide Conferences have included dialogues between the user and the producer of cotton fibers. Much progress in the mutual understanding of cotton fiber values to the textile mill has resulted from this effort, but this exchange between fiber supplier and his customer must be further intensified in terms of quality and utility in order to arrive at clear signals of what fiber properties are needed now and in the future. Let us examine briefly the fundamental reasons why the production, the valuation, and the marketing of US cotton must undergo changes for it to remain the premier fiber source to the spinner at home and abroad:

l. The US consumer of textiles has become more quality conscious, discriminates between values, and is more fashion oriented. 2. Competition in yarns, fabrics, and garments is now global, and no longer confined to within US borders. A shrinking customer base for spinners and weavers results in more goods chasing fewer customers. 3. Cotton faces increasing competition from man-made fibers, less in price than in quality and value. 4. Most importantly, fundamental changes in yarn manufacturing technologies are taking place. In addition, offshore yarn producers are setting up shop inside the US with the most modern equipment available, offering top-quality products.