As far as cotton goes, for the past several years the ag world has revolved around China.
But Joe Nicosia, the senior head of the Cotton and Merchandising Platforms for Louis Dreyfus Company, told Lamesa and Dawson County farmers this past week that the future of cotton soon will be controlled by ... this immediate area.
“China today is nearly a non-factor where they used to be the main factor,” Nicosia said to a full room of farmers, cotton business owners, bankers and other guests at the Lamesa Cotton Growers meeting held on Wednesday. “In world exports the U.S. has gone up from 26 percent to 39 percent in one year. Look in your own back yard. You’re going to control the price of cotton in this 100-mile radius.”
Nicosia showed farmers through a PowerPoint program that China’s cotton production has dropped from 35 million to 23 million. The Chinese have had to use more of their cotton surplus, about 14 million bales, while their use of cotton has remained steady.
“In three years, in North China, they lost 70 percent of their cotton acreage. Their traditional farmers in their largest cotton growing province have nearly abandoned cotton. It’s because the Chinese government made bigger payments to newer farmers in other parts of the country and the traditional (cotton) farmers are done.”
The Chinese now have no cotton to sell to meet that deficit so they will have to import cotton and that is a good thing for cotton prices, according to Nicosia.
(See complete story in e-Edition online and in printed edition of Lamesa Press-Reporter on newsstands now.)