Organic Cotton Market Outlook

Very interesting...this is reprinted from Eco-Textile News:

Texas-based non profit organisation The Organic Exchange says in its soon to be released 2008 Market Report that the global economic downturn will not stop global retail sales of organic cotton reaching US$4 billion in 2009 and US$5.3 billion in 2010, reflecting annual average growth rates of 24% and 33%, respectively.

In 2008, global retail sales of organic cotton products reached an estimated US$3.2 billion – up 63% on 2007 but slightly lower than the US$3.4 billion predicted earlier.

The supply of organic cotton fibre continues to grow, from 57,931 MT (metric tonnes) in the 2006/07 crop year to 145,865 MT for the 2007/08 crop year, due in large measure to increased production in India and Syria. The Organic Exchange (OE) says that during the past year, certified organic cotton fibre supplies have grown by 95%, which is significantly higher than annual growth rates of 45% in 2006 and 53% in 2007.

However, stocks of organic cotton are also set to rise according to the new report. “While the 2007/08 fibre supply was substantially higher than demand, most organic farming projects were able to sell their stocks, with 12,150 MT or approximately 8% of total production remaining at the end of the growing season in ending stocks,” according to OE.

However, many mills and merchants report significantly higher fibre inventories than in previous years. “Farmers who planted on speculation or expanded without market partners may have shifted the market into a state of oversupply heading into 2009,” says OE, which “strongly discourages farmers from taking this kind of risk.”

The new report also reveals that the ten brands and retailers with the largest organic cotton programs were: Wal-Mart, C&A, Nike, H&M, Zara, Anvil, Coop Switzerland, Pottery Barn, Greensource and Hess Natur.

“Brands may want to explore opportunities for expanding their organic programs with their business partners”, says the report, “as for the first time in many years, supplies of organic fibre, yarns, and fabrics are more available than in previous years.”

Contributed by Annie Kaskade
www.greenedgekids.com