#Raw Materials

2022-09-01

Flooding and drought are having a crushing impact on the global cotton industry

The massive human suffering in Pakistan is painful to witness, with more than 33 million people affected and nearly 1,200 killed to date. The entire global cotton industry is keeping the country and its people in their thoughts and prayers.

Executive Summary

Highlights from the September 2022 Cotton This Month include:

The impacts of climate change are being felt in multiple major cotton-producing countries

Floods have been devastating in Pakistan, with nearly 1,200 people killed to date

More than 33 million people have been affected and the economic costs are approaching $10 billion

On the other side of the world, the West Texas crop has been gravely damaged by drought, with an estimated loss of 1 million tonnes compared to last year

Globally, we will see continued volatility and potentially higher prices throughout the entire 2022/23 season

The impact on the cotton crop will not be fully realised until the water subsides but sources on the ground are reporting a large reduction in the expected crop for the 2022/23 season. The ICAC is reducing the estimated production for Pakistan from 1.5 million tonnes to 1 million tonnes. Below is the current snapshot of the Pakistan balance sheet.

In the United States, the effects on the cotton crop in Texas have been devastating and currently amount to an estimated loss of over 1 million tonnes compared with the previous season. This puts the current US crop at just over 2.7 million tonnes. And while the West Texas region has received a good amount of rain in the past few weeks, the precipitation has come much too late to help the dry land cotton — and if bolls are open in irrigated fields, it could spell trouble for quality.

Price Projections*

The Secretariat’s current price forecast of the season-average A index for 2022/23 ranges from 99 cents to 157 cents, with a midpoint at 126.95 cents per pound.

* The price projection for 2022/23 is based on the ending stocks-to-mill use ratio in the world-less-China in 2020/21 (estimate), in 2021/22 (estimate) and in 2022/23 (projection), on the ratio of Chinese net imports to world imports in 2021/22 (estimate) and 2022/23 (projection), and the average price in 2021/22. The projection reflects a 95% confidence interval.

Cotton This Month is published at the beginning of the month with the Cotton Update published mid-month. The Cotton Update, which is included in the Cotton This Month subscription, is a mid-month report with updated information on supply/demand estimates and prices. The next Cotton Update will be released on 15 September 2022. The next Cotton This Month will be released on 3 October 2022.

Organic cotton at the crossroads: Ideology, evidence, and the road ahead

Organic cotton occupies one of the most contentious spaces in global agriculture. While praised by brands and consumers for its environmental ideals, it also faces persistent questions about yield stability, certification integrity, and scalability. The current edition of The ICAC Recorder cuts through the ideology to deliver a rigorous, evidence-based assessment of both sides of the debate.

AMSilk and Ajinomoto Foods Europe expand partnership to enable industrial-scale production of silk proteins

AMSilk GmbH (“AMSilk”), a global leader leader in biotech produced silk materials, today announced a significant expansion of its partnership with Ajinomoto Foods Europe (AFE), marking a key step in scaling the industrial production of its silk proteins. Building on the collaboration first established in 2023, the two companies have now entered into a long-term manufacturing and supply agreement, enabling the transition from industrial validation to dedicated, large-scale production.

Cotton made in Africa partners receive top marks in independent verifications

Cotton made in Africa® (CmiA) and CmiA Organic are two internationally recognised standards that aim to promote sustainable development in the African cotton sector south of the Sahara. To ensure the standards’ credibility among brands, retailers, and consumers, independent verifiers evaluate compliance on the ground. The verification results for 2025, now published in the Aggregated Verification & Implementation Report, were very strong: The verifiers awarded consistently very good remarks regarding management, people, prosperity, and the environment.

C&S strengthens its governance to support its evolution

C&S announces the appointment of Marco Lucietti to its Board of Directors. With extensive international experience across the textile and denim industries, Lucietti will work alongside CEO Federico Corneli, contributing to the company’s managerial development, organizational structure and long-term strategic direction.

Industrial scale meets verified governance: RE&UP is now B Corp™ certified

RE&UP, the circular-tech transforming global textile waste into high-volume Next-Gen materials, has officially become a Certified B Corporation™. The milestone establishes the industrial recycler among a select group of manufacturing infrastructure providers verified as meeting B Lab Standards for social and environmental performance, transparency, and accountability.