Breaking record after record in the last three cycles, Brazil concluded the cotton harvest for the 2019/2020 harvest, reaching the expected mark of 2.9 million tons of cotton lint, 5% more than in 2018/2019. Around 700 to 750 thousand tons of the commodity will supply the entire domestic market demand, and the surplus will be exported. According to the Brazilian Association of Cotton Producers (Abrapa), Brazilian cotton farming – one of the most productive in the world – is far from any risk of shortages, even with the industry's recovery due to the resurgence in retail consumption, following the reopening measures. of national commerce, at this stage of the pandemic.
Cotton processing, a process that separates the seed from the fiber so that it can be sent to industry, also takes place at a fast pace. “Around 50% of the total harvested has already been processed, with no possibility of an off-season for the textile industry. We are the fourth largest cotton producer in the world, suppliers of lint in 12 months of the year”, explains the president of Abrapa, Milton Garbugio. The association disputes the attribution of the increase in the price of clothing – which the end consumer is noticing at points of sale – to the appreciation of the commodity, based on an alleged scarcity of the raw material.
According to Abrapa, in relation to price, the supposed increase complained of by the textile industry and retailers is due to the exchange rate variation of the real in relation to the dollar. According to the ESALQ Index table, which is the reference for cotton sales in Brazil, in September 2018, the farmer sold his cotton for US$ 1.70 per kilo of lint or R$ 7.02/kg. In September 2019, cotton sold for US$ 1.31 per kilogram, or R$ 4.76 per kilogram of lint.
“Today, the producer sells for US$ 1.32 per kilo or R$ 7.05 / kilo of feather. In other words, practically the same value in reais as in September 2018”, contests Garbugio.
According to the president of Abrapa, cotton producers' profitability is currently very low. According to Conab surveys, cotton production costs are around R$ 7 per kilogram of lint produced, very close to market prices.
“We producers are very happy to know that the national industry is recovering, and we depend on this happening. We are also happy to see that the demand for cotton is strong, even more so with the higher price of synthetics, due to the exchange rate variation in the real. From our side, what we can guarantee is to produce more and more and better”, concluded Garbugio, reinforcing that Brazil is preparing to start planting the 2020/2021 harvest.
Source: Notícias Agrícolas
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