São Paulo – Brazilian cotton exports to the Arab countries grew 146% in value from January to August this year as against the same period last year. According to figures disclosed by the Ministry of Development, Industry and Foreign Trade, sales rose from US$ 4.4 million to US$ 10.8 million. "Last year, cotton was much cheaper,” said the president of the Brazilian Association of Cotton Producers (Abrapa), Sérgio De Marco.
In fact, sales also grew in volume, but at lower proportions. They climbed from 2,600 tonnes, from January to August 2010, to 3,700 tonnes in the same period this year, growth of 30%. The main importer in the Arab world was Morocco, with 2,700 tonnes, or US$ 9.2 million. De Marco recalls that the volume is small when compared to all the country should export in cotton this year, 800,000 tonnes, but says that the sector is carefully eyeing these early imports from Morocco.
The president at Abrapa believes that purchase from Morocco were motivated by the quality of Brazilian cotton. He recalled that the product has gained quality abroad. According to him, another important factor for the import was the price. De Marco believes that the Moroccans managed to get a better price for Brazilian cotton. "We may be winning market from Australia and Pakistan,” he said. Morocco has a large garment production industry, including European brands.
On the other direction, Brazil also imported more cotton from the Arab world. But the cotton came mostly from Egypt, a county that is a traditional producer of long-fibre cotton, turned to high-end products. Brazil spent US$ 11 million on the purchase of Egyptian cotton from January to August, growth of 375% over the same period last year, when purchases were US$ 2.3 million. Brazil received 2,100 tonnes of Egyptian cotton up to August, against 926 tonnes in the first eight months of last year. The growth, in terms of volume, was 127%.
Up to may this year, Brazil maintained a zero tariff on the import of cotton, up to a specific volume, aiming at supplying the domestic market, as some Brazilian states had lower crops. The situation, however, is already normal. According to De Marco, this year Brazil should pick 1.75 million tonnes, with industry in the country consuming 900 tonnes and around 800,000 tonnes being exported. With this, little cotton should be lacking for the market, some 50,000 tonnes. The cotton crop ended this month and the sowing of the next crop begins in December.
*Translated by Mark Ament
