America, the biggest exporter of global cotton industry, presents an impression that market balances come to normal. Turkish textile producers too had been affected by the fluctuation in cotton prices in 2011. In Turkey’ s cotton export America has the biggest share. Turkish textile producers compensate 60-65 percent of their needs for cotton with American cotton. So, TUrkey takes place among the most important markets for American cotton producers. CCI, which is the head organization of American cotton producers, spare a special place to Turkey on their event calendar.
Having close dialogues with Turkish textile producers and industry representatives, CCI does not leave Turkey alone within export market presentation of textile productions produced with American cotton. We had an interview with CCI Executive Director Kevin Latner about CCI’ s global works and views on Turkish market. In addition, at the interview we had on 5. İstanbul Fashion Apparel Conference arranged by TGSD, CCI Turkey Program Director Marsha Powell made some assessments about the Turkish market, which he is in for many years. Latner and Powell emphasized that their relationship with Turkish textile producers whom they regard as business partner is termly going better.
Cotton Harvest to Increase 8 Percent
Kevin Latner states there is a decrease in prices when compared to the last year, and a decrease in cotton planting fields in parallel to this. After implying that due to high prices customer demands decreased, Latner continued: “these problems faced affect cotton market, too. One of the surprises of this year is American cotton harvest has been at a lower degree. This structure, caused by the drought in Texas region affected the market in global terms, too. Drought decreased production. But climate conditions’ change in positive way increases our expectations fort he next year. We think there will be an increase of 8 percent in cotton production this year. In numbers, American Ministry of Agriculture expects around 3.86 million tons of harvest in 2012-2013.”
Reminding America’ s being the biggest cotton exporter in the world despite the problems faced, Latner underlined that they are the most calculable country in terms of quality and contamination.
Markets are Important to be Stabile
Kevin Latner evaluated the subjects influencing supply chain and stated that they are in alliance with the American government about the crises in India. Working with Indian authorities for preventing fluctiation, Latner said: “we are in touch with all the companies forming the supply chain. We are informing them about the problematic processes. In addition, we make collaborative business about managing risks expected due to fluctuation. In this context, we are trying to find means to remove variance in prices caused by the problems. Now, I think the estimated stocks are at enough level. Works done has began to produce fruit. I believe the stability will continue and there will be an increase in cotton demands of consumers.
Turkish Market has Geographical Advantage
Kevin Latner, who made studies in far eastern countries like China and Japan for long years, made evaluations about his experiences in these markets and similarities between this region and Turkish markets.Indicating Turkey has a geographical priority due to its territorial state, Latner mentioned that she reinforces this power with her dynamic, flexible, industrial structure and standing close to the customers. According to Latner, Turkey adapts to the changes in the global market rapidly; in a period that markets are affected by the global crises, Turkey gets positive results.
Additional Taxes are Positive for Turkey
Latner gave important information about the additional taxes that the Turkish government brought to yarn and weaving productions by saying: “It is a bit hard for us to evaluate the decisions made. Because decision on taxing coincides with the time when cotton prices were on top and and Turkish cotton production decreased. When considered from Turkey’ s view, this step intended to increase cotton production has been beneficial for Turkish industrial improvement. As prices decreased, demand on Turkish cotton products increased. Firms chose to produce in their own countries and Turkish economy became profitable.”
In addition to its geographic priority that enables affinity to market, Turkish textile industry can adapt to the market changes with its dynamic and flexible structure, he states.
Turkish Companies Don’ t Leave to Chance
Marsha Powell, CCI Turkey program director, reminded US to be the biggest cotton exporter in the global market. Powell emphasizes; “though there are fluctuations time to time, we protect our leadership without conceding from our quality and credibility.”
Powell underlines that Turkey is an important market for them and goes on: “I have been in cotton industry fort he last 7 years. In the last 10 years Turkey’ s spinning capacity has enlarged, so need for cotton began to be increased. Due to the desire to compensate stock from abroad, US has been the biggest supplier of Turkey. Increasing trade volume resulted in both sides’ gaining an irrevocable structure. There occured a collaboration rather than a trade relationship. Reliance of both sides upon each other has become undeniable. I believe that relationships with Turkey who has risen to being the second biggest country to import US cotton sholud be more powerful and larger in volume.”
According to Powell’ s emphasis, export to Turkey did not go through any change in this period. He finishes his words by saying: “there is not a change in terms of amount but there are changes in application. Turkey, who had the intenbtion to use her own cotton first, seems to abandon this policy. As we grow cotton in a former season, we are preferred first. Because companies want to remove the problems to occur due to changes in the amount of cotton grown in Turkey. Companies who want to erase the possibility of not finding enough cotton amount remake its supply.
Powell Told the Story of Cotton
Marsha Powell made a presentation titled “World of Cotton: From Fiber to Fashion” in İstanbul Fashion Apparel Conference , arranged as the 5. time by TGSD with “The Most Fashionable Conference” motto. Reminding of the overfluctuation in cotton prices last year, Powell depicted that cotton prices reached its peak around the world in March 2011. Powell said: “Thoroughout this month, cotton prices has risen up to 2.40 dollars. Afterwards, they decreased seriously. But, when compared to 2010 prices, these still seem to take place over 10 percent. Looking at the price movements with the supply chain, we see that prices between August 2010 and Mart 2012, which is on the most basic level, has increased a percentage of 154 percent. In a period of just 5 months, very rapid. Through March 2012, prices has been very much close to the August 2010, the time we regard as the basic, it is just 10 percent above.”
Despite this rapid increase in cotton prices, 53 percent increase was observed in yarn prices 2 months later, Powell states, and adds that serious increase in cotton prices has not reflected on ready made products. He informs that a decrease in spinning in years can not be mentioned, increase in cotton prices decreased usage and the stocks at hand also increased. Marsha Powell arrayed Chinese and Indian policies, price competition among different products, energy costs and exchange rates as the factors influencing prices in global cotton market. He states an expectation of China’ s decrease from 7.29 meter tons to 6.42 tons in cotton production in 2011 and explained an anticipation of approximately 2 millions decrease in total in terms of productions other than America.
