Cost of cotton production rise, ICAC (Global)
The International Cotton Advisory Committee (ICAC) Secretariat undertakes a survey of the cost of cotton production at three-year intervals. The most recent survey was completed this month using data from 2009/10. Thirty-four countries participated in the latest survey, providing 63 entries, including rainfed and irrigated regions and regions within countries.During the last three years, the cost of production of seedcotton increased to US$0.43 per kilogram. The cost of production of cotton lint (net of land rent and the value of seed) increased to $1.22 per kilogram, a 17% increase from the average cost estimated in 2006/07. Lower yields in 2009/10 compared with 2006/07 were the main factor resulting in the rise in production costs.
The net cost of production averaged about $1.15 per kilogram in Asia and West Africa. The Fruitful Rim region of the USA, followed by Colombia and China, had the highest costs of production. India, whether irrigated or rainfed, had the lowest production costs for cotton because of recent increases in yields and high values for seed. The value of cotton seed in India is 3 to 4 times greater than the cost of ginning.
The costs of individual inputs vary greatly among producing countries, and input costs have followed different trends during the last three years. The cost of weed control more than doubled between 2006/07 and 2009/10 to US$0.28 per kilogram of lint production. The cost of fertilizer and irrigation also rose. However, the cost of insect control per kilogram of lint was unchanged, and the cost of planting seed and ginning declined by one and two cents per kilogram of cotton, respectively.
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