2023-06-12 01:31:27
Cotton prices are plummeting as concerns over lower demand due to the slowing global economy overshadow tighter supply in the world’s three main producing regions, Gro Intelligence, the smart agro platform, has lamented. – environmental.
Julien COSTA
In the United States, the world’s third-largest cotton producer, farmers are expected to plant 18% fewer acres of cotton this year, one of the biggest declines in cotton acreage this century. The U.S. is also the top cotton exporter, and a smaller U.S. crop will have an outsized effect on global exportable supplies, according to Gro’s May 2023 forecast.
“Drought is also hitting cotton growing in China, the world’s largest cotton producer and it is worse especially in Xinjiang province which produces around 90% of the country’s harvest”, laments the artificial intelligence agricultural platform based in the United States and Kenya.
As for India, the world’s second largest producer, consecutive years of stagnant production have forced the country to import cotton. Exports have historically exceeded imports by a significant margin, and the last time imports outnumbered them was nearly 20 years ago.
Slow-down
According to Gro, the causes of this fall are linked to the slowdown in the world economy whose International Monetary Fund (IMF) and the World Bank have both revised downwards the forecasts for economic growth in 2023. “Inflation rates High levels are also expected to persist, a scenario that is expected to dampen consumer demand for cotton products,” Gro experts explain.
In Africa, the region dominated by Benin, Mali, Burkina Faso and Côte d’Ivoire which produce about 50% of the continent’s production, producers will find it hard to swallow their pill because it will be bitter.
Most producers will be unpaid, says Youssouf Djimé Sidibé, executive secretary of Aproca, the association of African cotton producers, on the antennas of RFI.
“West African cotton producers will face a drop in income as the 2022/2023 cotton campaign promises to be difficult. Between the fertilizer crisis and pest attacks, productivity and production are down among the main producers in West Africa, with the exception of Benin. A crisis that will have repercussions on the standard of living of producers, ”reports RFI.
Nevertheless, despite this setback, the drop in subsidies and the threats of climate change and jassids (insect pests), the future of the African sector looks bright.
The size of the African cotton market, already estimated at USD 5.78 billion in 2023, is expected to reach USD 7.34 billion by 2028, which equates to a compound annual growth rate (CAGR) of 4.91% at during the forecast period (2023-2028), according to statistics from Mordor Intelligence.
197 Total Views, 46 Views Today
#Prices #fall #demand #falls