USDA forecasts Egyptian cotton output to drop 5% to 200,000 MT
25 May '06
3 min read
Report Highlights: Cotton area in MY 2006/07 is expected to decrease by 7 percent in Egypt. Total production is expected to drop 5 percent to 200,000 MT. Egyptian cotton exports in MY 2006/07 are expected to decrease 31 percent from 2005/06 level.
Area Planted and Production The total cotton area in MY 2006/2007 is forecast to be 600,000 feddans (252,000 HA), compared to 650,000 feddans (273,121 HA) in MY 2005/2006. This decrease mainly occurred in ELS area due to decrease in yield, a decrease brought about as a result of mixing ELS seed varieties (especially Giza70).
As a result, export prices for ELS varieties were down. In addition, the prolonged price increases for local corn and rice influenced farmers' decisions to plant those crops rather than cotton, particularly in Upper Egypt and the Delta.
Although total cotton area is expected to be down by 7.7 percent, industry sources estimate that cotton production will increase by 4 percent compared to MY 2005/2006. This is a result of an expected increase in average yield as area for LS varieties increases and area for ELS decreases.
In MY 2006/2007, approximately 26 percent of the total Egyptian cotton crop is expected to be extra long staple (ELS) varieties (staple lengths of 1 3/8 inches and above). This represents a one percent decrease from the MY 2005/2006 level. This is mainly due to the decreased demand for ELS cotton varieties by the export market.
Major ELS varieties are Giza 45, Giza 70 and Giza 88. These three varieties are considered to be among the finest cottons produced in the world. The Ministry of Agriculture continues to be the sole distributor of cottonseed. In order to encourage early cultivation to conserve water, the Egyptian government continues to provide some assistance to cotton farmers
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