The International Cotton Advisory Committee met in Goiânia, Goias, Brazil during September 11-15, 2006 for its 65th Plenary Meeting since 1939. Representatives from 53 governments and 10 international organizations participated in the meeting.
Global Cotton Demand Expanding: The Secretariat estimates that world cotton use will increase by 3 percent to 26 million tons during the current cotton season. World cotton consumption increased every year between 1998 and 2005, and the expansion is now the longest and largest on record.
World production is expected to remain at 25 million tons for a second year in 2006/07, and ending stocks are projected to decline by 1 million tons. The Secretariat believes that the average level of international cotton prices is likely to rise during 2006/07 as a result of the projected decline in stocks and increase in trade.
The Committee instructed the Secretariat to strengthen its efforts to forecast cotton prices, and several countries suggested that the Secretariat include the effect of subsidies in their price model to improve its accuracy.
The Committee received reports from countries about developments in their cotton sectors. Some countries reported on the rapid advance of yields linked to the adoption of new technologies, including biotechnology.
Developing countries reported that their industries are being severely affected by cotton prices that remain below the average of previous decades, and it was reported that government measures in some countries are contributing to distortions in world cotton production.
Click here for more.
International Cotton Advisory Committee