From the Secretariat For Release September 14, 2010
69TH PLENARY MEETING OF THE
INTERNATIONAL COTTON ADVISORY COMMITTEE
Lubbock, Texas, USA
September 20-25, 2010
Cotton Industry Growth Through Global Unity.
Cost of Cotton Production Rose
The ICAC Secretariat undertakes a survey of the cost of cotton production at
three-year intervals. The most recent survey was completed this month using
data from 2009/10. Thirty-four countries participated in the latest survey,
providing 63 entries, including rainfed and irrigated regions and regions
within countries.
During the last three years, the cost of production of seedcotton increased
to US$0.43 per kilogram. The cost of production of cotton lint (net of land
rent and the value of seed) increased to $1.22 per kilogram, a 17% increase
from the average cost estimated in 2006/07. Lower yields in 2009/10 compared
with 2006/07 were the main factor resulting in the rise in production costs.
The net cost of production averaged about $1.15 per kilogram in Asia and West
Africa. The Fruitful Rim region of the USA, followed by Colombia and China,
had the highest costs of production. India, whether irrigated or rainfed, had
the lowest production costs for cotton because of recent increases in yields
and high values for seed. The value of cotton seed in India is 3 to 4 times
greater than the cost of ginning.
The costs of individual inputs vary greatly among producing countries, and
input costs have followed different trends during the last three years. The
cost of weed control more than doubled between 2006/07 and 2009/10 to US$0.28
per kilogram of lint production. The cost of fertilizer and irrigation also
rose. However, the cost of insect control per kilogram of lint was unchanged,
and the cost of planting seed and ginning declined by one and two cents per
kilogram of cotton, respectively.
The Secretariat will present a detailed report at the 69th Plenary Meeting
starting next week in Lubbock, Texas, USA. The full report, including
detailed estimates of costs of all operations, inputs, harvesting and
ginning, can be ordered from publications@icac.org.
Additional information about the 69th Plenary Meeting is available on the
ICAC web site: www.icac.org.