March 3, 2000

Fiber quality, consumer demand and competitive pricing are the three keys to success and profitability, Dr. Mark Lange, director of economic and information services for the National Cotton Council, said at the Beltwide conference.

Lange reminded producers that breeding, agronomic practices, weather, ginning, processing, storage and economic incentives all affect the first key, fiber quality. Preserving and improving fiber quality is a never-ending challenge for the industry, he said.

"Some argue that textile mills are never pleased, or are insatiable, when it comes to fiber quality. But we should keep in mind that technology continues to push the envelope of fiber processing," Lange said. "Consequently, cotton lint qualities must keep abreast of technological demands or we will see our world markets fall away."

Consumer demand, the second key to success, is alive and well, the economist noted, thanks to Cotton Incorporated’s highly successful market promotion programs and its textile, fashion and consumer research in North America. NCC’s Cotton Council International works in the foreign arena to boost demand, promoting U.S. cotton and cotton products in Europe, Asia and South America.

The U.S. cotton industry’s competitive price position, Lange’s final key to long-term success and profitability, is achieved in part through the Upland cotton marketing loan and renewed Step 2 funds last October by Congress. U.S. mill customers will again see prices for their raw cotton that are generally comparable to world prices, Lange said. "Since October, raw export sales registrations have pushed expectations for U.S. cotton exports in 1999-2000 closer to our historical world market—in spite of weak international cotton demand.

"Ultimately, for our industry to grow and remain profitable, our cotton fiber has to work with the equipment and fashions adopted by the world textile industry. Our fiber must also be sought by consumers and then priced to move in the world markets.