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Brazil finishes harvesting a new record cotton crop

Posted by Marina

Breaking record after record in the last three cycles, Brazil concluded the cotton harvest of 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 total demand of the domestic market, and the surplus goes to export. According to the Brazilian Association of Cotton Producers (Abrapa), Brazilian cotton production - one of the most productive in the world - passes away from any risk of scarcity, even with the recovery of the industry due to the reheating of retail consumption, after the reopening measures national trade, at this stage of the pandemic.

The processing of cotton, a process that separates the seed from the fiber so that it can go to the industry, also occurs at an accelerated pace. “About 50% of the total harvest has already been processed, with no possibility of off-season for the textile industry. We are the fourth largest cotton producer in the world, supplying feathers 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 clothes - which the final consumer is perceiving at the points of sale - to the appreciation of the commodity, based on an alleged shortage of the raw material.

According to Abrapa, in relation to the price, the supposed rise of which the textile industry and shopkeepers complain, is due to the exchange variation of the real in relation to the dollar. According to the table of the ESALQ Index, which is the reference for the commercialization of cotton in Brazil, in September 2018, the farmer sold his cotton for US $ 1.70 per kilo of feather or R $ 7.02 / kg. In September 2019, cotton was sold for $ 1.31 a kilo, or R $ 4.76 per kilo of feather.

“Today, the producer sells for US $ 1.32 a kilo or R $ 7.05 / kilo of feather. In other words, practically the same amount in reais practiced in September 2018 ”, disputes Garbugio.

Also according to the president of Abrapa, currently, the profitability of the cotton producer is very low. According to surveys by Conab, cotton production costs are around R $ 7 per kilo of plume produced, very close to the prices practiced in the market.

“We producers are very happy to know that the national industry is recovering, and we depend on this to happen. We are also happy to see that the demand for cotton is heated, especially with the higher price of synthetics, due to the exchange rate of the real. On our part, what we can guarantee is to produce more and more and better ”, concluded Garbugio, reinforcing that Brazil is getting ready to start planting the 2020/2021 harvest.

Source: Notícias Agrícolas