Developments and prospects in the international cotton market

Amrouk, E.M.; Palmeri, F.;

Developments and prospects in the international cotton market

Year of publication 2023

Place of publication Rome, Italy ;

Pages 2p.

Author Amrouk, E.M.; Palmeri, F.;

Publisher FAO ;

Product type Policy brief

Series title Trade policy briefs

Series number No. 50

Full item page

Synopsis (short abstract) Cotton is a key driver of economic growth, sustaining millions of farmers and families across 80 countries in five continents. It also represents an important source of foreign exchange for a number of low- and middle-income countries. World cotton trade began to trend upwards in the early 2000s with the implementation of the commitments undertaken at the Uruguay Round of the World Trade Organization (WTO), and is projected to expand steadily over the next decade. Such expansion is expected to be affected by a number of challenges and uncertainties, including income and population growth, policy measures affecting the production and consumption of cotton, the adoption of sustainability standards in supply chain, trade developments and geopolitical tensions. This policy brief provides an overview of recent developments in the cotton market at national and international levels, and discusses projections and challenges for the world cotton trade over the next decade.

Cite this content as:

Amrouk, E.M. and Palmeri, F. 2023. Developments and prospects in the international cotton market. Trade policy briefs, No. 50. Rome, FAO.

https://doi.org/10.4060/cc8407en

Language English

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Forward

Acronyms and abbreviations

Executive summary

Chapter 1: Overview of the OECD-FAO Agricultural Outlook 2016-2025

Chapter 2: Agriculture in Sub-Saharan Africa: Prospects an d challenges for the next decade

Chapter 3: Commodity snapshots

Commodity chapters (not available in full report)
Cereals
Oilseeds and Oilseed Products
Sugar
Meat
Dairy and Dairy Products
Fish and Seafood
Biofuels
Cotton
Statistical Annex

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Book (stand-alone)

Recent trends and prospects in the world cotton market and policy developments 2021

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The cotton sector contributes significantly to the economies of a number of developing countries, as well as to the livelihoods of millions of rural smallholders worldwide. In 2019, world production of cotton was valued at about USD 46 billion, while global trade reached USD 15 billion. Moreover, the cotton industry employs an estimated 150 million people across 75 countries, making the cotton sector an important contributor to the achievements of the 2030 Agenda for Sustainable Development. Understanding the drivers of the cotton market and identifying the challenges and opportunities that lie ahead is key, given the socio-economic significance of the sector. The mobilisation of innovative technologies and resources is vital to ensure that the sector remains viable and sustainable. As FAO Director-General QU Dongyu highlighted during the World Cotton Day event held at the WTO headquarters in October 2019, it is critical that the sector meets the highest standards of sustainability at all stages of the value chain. It is time to do things differently: to explore innovative approaches and new ideas aimed at pro-poor outcomes.

Book (stand-alone)

Economic importance of cotton in Burkina Faso 2018

This report investigated the role that cotton production has played in the economic development and poverty reduction in Burkina Faso, with a principal focus on how cotton prices, as a proxy to agricultural income, affects economic growth. Findings suggest that while cotton contributes to modest rates of economic growth, the lack of profitable investment opportunities in the industrial and service sectors limit agriculture’s growth potential. The artificially low prices paid to Burkinabe cotton producers suppress farm income and constrain the long–term buildup of investment capital needed to adopt more modern and productive technology and management practices. Moreover, the low pricing has aggravated household’s ability to make any meaningful movement out of poverty. One of the major points drawn from this report is that Burkina Faso’s cotton sector has emerged as a model sector that other countries in the region should consider emulating. Burkina Faso has been forward looking and open to innovation as evidenced by its proactive stance in adopting Genetically Modified (GM) cotton and its inclusion of the smallholder farming community as an equal partner in the ginning industry. While cotton sectors in developing countries will continue to face challenges from declining world markets and sustaining productivity, Burkina Faso provides a viable path for cotton’s continued presence in West African agriculture.

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