Around the world, the demand for cotton shirts and britches has
never been better. The U.S. industry that turns cotton into
products like these, however, is in major economic trouble. And
their stress means U.S. growers are having to depend more than
ever on foreign buyers.

This trend, if it doesn’t change, will create more volatility in
the already unpredictable prices growers get, said Don Shurley, a
University of Georgia Extension Service economist.

“If (U.S. growers) are going to keep growing and producing cotton
at the levels we are now, we’ll have to export it,” Shurley
said.

Bumper Crop

This year, U.S. growers expect to produce about 20 million bales,
17 percent more than last year. (A bale is 480 pounds of cotton
lint.) Georgia growers expect to grow 2.2 million bales, making
2001 one of the best production years on record.

Due to competition from foreign companies and a strong U.S.
dollar, the textile industry in this country has decreased cotton
purchases since 1997 by 3 million bales, about 30 percent.

“Again, unless growers cut back production, they’ll have to make
up those 3 million bales in exports,” Shurley said.

Big Exports

This year, it just so happens, the United States is on a record
pace to export almost 10 million bales of cotton, 3 million more
than last year.

The last time the nation came close to exporting this much cotton
was in 1994. This was because poor production in other countries
left the United States the only country with cotton to sell,
Shurley said.

That’s not the case anymore.

U.S. growers are selling overseas not because they’re the only
ones with cotton. They export because that’s the only way to get
rid of their cotton. This puts them at the mercy of world prices
and competition.

Prices Low

Currently, growers can get about 32 cents per pound for cotton.
This is well below the about 65-70 cents it costs to grow it.
Prices ranged from 60 cents to 80 cents over the past few years
and haven’t been this low in decades.

“The point is: unless there is some sort of supply shock, world
prices will not get higher,” Shurley said.

“The economic environment is hostile,” said Roy Bowen, president
of the Georgia Textile Manufacturers Association.

Textile Woes

Bowen told growers at the 2001 Georgia Cotton Production Workshop
in Tifton, Ga., that in the past few years, 75 U.S. textile
factories have shut down, including two in Georgia. And the
current economic crisis has further weakened the industry.

Since Sept. 11, 12,000 U.S. textile workers have lost their jobs,
including 7,200 in Georgia. About 15 percent of textile workers
lost their jobs in 2001.

Help could be on the way. The farm bill being debated in
Washington has some provisions to address the problems of the
textile industry, strengthen U.S. cotton exports and improve the
income safety net for farmers, Shurley said.