Consumption and Utilization
The consumption of local cotton has been declining in the past few years. Until a few years ago, the textile industry's annual requirement of raw cotton averaged between 5.5 and 6 million kentars (275,000 to 300,000 MT).
Prices
The indicative level of farm prices set by a committee consists of the Minister of Trade, a representative from ALCOTEXA and a representative for farmers. The indicative farm prices for all varieties are calculated based on indicative cost of production plus profit margin. Market prices for the 2005/06 season were reported at LE 830 for Giza 86, LE 1,100 for Giza 70, LE 995 for Giza 88, and LE 640 for Giza 89 (prices are per kentar of 50 kg).
This is compared to LE 590 for Giza 86; LE 620 for Giza 70; LE 610 for Giza 88 and LE 550 for Giza 89 varieties, in the 2004/05 season. Although 2005/06 prices were higher than 2004/05 prices, farmers received less revenue in 2005/06 for their cotton. Local traders received the balance between the indicative prices and the actually price paid to farmers.
Trade
In MY 2005/2006, the private sector companies' share of total export contracts was 59 percent verses 41 percent for public sector companies. This reflected the ability to export cotton at flexible prices as the international market changes. Egypt's cotton exports in MY 2005/06, are expected to reach 85,000 MT, compared to 130,000 MT in MY 2004/05. Exports during the 2005/06 season are expected to decrease due to the drop in production.
In order to promote the sale of Egyptian cotton, ALCOTEXA and the Ministry of Foreign Trade developed an Egyptian Cotton logo. ALCOTEXA and the Ministry of Foreign Trade own the logo. The logo is marketed by “Cotton Egypt” the Fiber Promotions Department of ALCOTEXA.
United States Department of Agriculture Foreign Agricultural Service
marketing@alchempro.com
