The Future of High Quality and Branded Cotton?

Several blogs ago I mentioned FCStone Fibers and Textiles was preparing a multi-client study on the replacement of Extra Long Staple (ELS) cotton acreage with Long Staple (LS) cotton in China’s Xinjiang province. The blog entry drew quite a bit of commentary about including Pima as well as Egyptian. Well, we have and are proud to announce the forthcoming multi-client study, "The Future of High Quality & Branded Cotton". A copy of the prospectus can be downloaded at the following address: http://globecot.com/20090615prospectus.pdf. I’ve included the opening introduction which pretty much is the gist of the study. Should you be interested in subscribing feel free to contact me directly at jim.lambert@fcstone.com.

High quality and branded cotton acreage is on the decline around the world. In China, there is a major shift from extra long staple (ELS) to long staple (LS) cotton acreage underway in Xinjiang, the country’s top cotton production province. In the US, Pima acreage is rapidly disappearing while Egypt suffered a 50 percent reduction from the previous year’s output. Ultimately, the rise of long staple cotton is supplanting high quality and branded grades; the ramifications of which will have a huge bearing on how merchants, mills and retailers trade, purchase, consume, market and brand high quality cotton as a fiber and end product.

FCStone Fibers and Textiles (formerly Globecot) proposes to undertake a strategic study of the key countries producing long staple (LS) and extra long staple (ELS) cotton with a primary focus on China, India, the US and Egypt. Because the supplanting of high quality and branded cotton acreage with long staple cotton will have such a dramatic effect on the world’s textile industry, we will include an additional section detailing what 20 major vertical textile mills—all primary users of ELS, Pima and/or Egyptian cotton—think about how this switch will impact their business. An additional bonus to the report will include a section offering thoughts and opinions from up to ten of the top US, Asia and European retailers (and brands) currently using and promoting high quality and/or branded cotton in their final products be it apparel or home furnishings.