Page 18 - 03 Cotton SA February 2014

Nuus – News

Attendance of 72 Plenary Meeting
nd

The International Cotton Advisory Committee (ICAC) met in Cartagena de Indias, Colombia, during 29 September to 4 October 2013 for
its 72nd Plenary Meeting since the establishment of the Committee in 1939. Participation was 395 including representatives from 35
governments and 10 international organizations. The theme of the meeting was “Emergent Challenges Facing the Cotton Value Chain”.
Cotton SA was part of SA’s official delegation who attended the meeting and was represented by Mr Joseph Kempen, Board Member and
Chairperson of the SA Cotton Ginners’ Association and Mr Hennie Bruwer, Chief Executive Officer of Cotton SA.

he Secretariat reported that world cotton consumption
in 2013/14 is projected to be below production for the
fourth consecutive season, and stocks are expected
Tto reach a record level. The Secretariat observed that
cotton prices are above their long-term average, supported by
the procurement policy of the government of China, the largest
cotton producing and consuming country in the world. This policy
maintains domestic cotton prices at approximately 50% above
current international prices. Stocks held in the national reserve
of this country account for approximately half of world stocks. By
artifi cially supporting prices, this policy is undermining the long-
term competitiveness of the cotton industry and creating much
uncertainty. When and how these stocks are liquidated is the key
unknown factor that will defi ne the fundamentals of the world
cotton market over the next several year

The ICAC’s Task Force on Competing Fibres reported that cotton’s
market share continues to decline and that cotton would face Messrs Joseph Kempen(left), Hennie Bruwer and Dr Alejandro Plastina
strong competition from alternative fi bres for the rest of this (ICAC).
decade. The Task Force listed several factors that undermine The ICAC received a report from its Expert Panel on the
the competitiveness of cotton and put forward a number of Social, Environmental and Economic Performance of Cotton
suggestions for government, industry and ICAC action: Production (SEEP), “Measuring sustainability in cotton farming
a. Governments should avoid interventions in cotton markets, systems: Towards a guidance framework.” SEEP provided
since the damaging consequences can increase price recommendations about the indicators that should be used to
volatility, endanger contract sanctity, disrupt trade and cause measure sustainability in cotton production. The recommended
a loss of market share to fi bres with more stable prices. indicators cover the three pillars of sustainability: social,
environmental, and economic. There was a consensus among
b. Governments should heighten transparency in cotton
polices, and improve systems of providing statistics. plenary meeting participants that any framework for measuring
Uncertainty regarding government policies and inadequate sustainability needs to be implemented on a country-by-country
statistics contribute to uncertainty and lead to poor decision- basis, and that committees should be formed in each country
making. to create the initial framework of metrics and to ensure that the
framework is updated as production practices evolve.
c. Governments should ensure that industry has access to tools
of price risk management. The Plenary Meeting accepted the recommendations,
recognizing that discussions of sustainability are ongoing, and
d. Governments should introduce and/or enforce fi bre content the Committee asked the SEEP Panel to complete its report
labeling requirements to enable consumers to exercise on measuring sustainability for consideration by the ICAC.
preferences in favour of cotton. Representatives of governments and the private sector pledged
e. The cotton industry itself should communicate the positive to consider how best to implement the recommendations of
attributes of cotton for the environment, economy and SEEP in their countries.
human health and wellbeing.
The ICAC was informed that in many countries more than half
f. The cotton industry and governments should strengthen of the land used to grow cotton is rented or held in common at
eff orts to improve effi ciency by adopting standardized the village level, with negative implications for investments in
instrument testing, developing a standardized bale irrigation, soil conservation practices, and other infrastructure.
identifi cation system, and adopt the FAO model phytosanitary Governments can facilitate investments in land productivity by
certifi cate. ensuring that farmers have clear, enforceable titles or leases to
land, by encouraging long term leases in place of annual leases,
g. The ICAC Secretariat should take a more proactive role in
answering public criticisms of the cotton industry. and by ensuring that producers have access to training, fi nancing
and inputs to enable them to be productive. Governments are
The plenary session approved the suggestions and requested encouraged to ensure that systems of land tenure are developed
that the Standing Committee give further consideration to each via an inclusive process of dialogue and consensus with all
during the next year. segments of society.

Katoen SA Cotton 18 Februarie • February 2014