Record harvest of more than 3 million tons of cotton in Brazil

Courtesy of ANEA

ANEA’s director portrays export scenario

Cotton exports from Brazil, the second largest global fiber exporter behind the United States, there is a potential to reach around 2 million tons in the period from July 2020 to June 2021, repeating the record expected for 2019/20 harvest.

The Director of the National Association of Cotton Exporters (ANEA), Miguel Faus, gave the following interview to ????????????.

Miguel Faus has a degree in Business Administration at Getúlio Vargas Foundation (FGV), an MBA at Universidad de Las Americas, and since 2009 is CEO for Brazil at the trading company Omnicotton Agri Commercial Ltda., based in USA, and is Director of ANEA.

 


 

AgriBrasilis – In relation to the international market, is Brazil among the largest world cotton producers?

Miguel Faus – Yes, Brazil is the fourth largest cotton producer with 3 million tons at 19/20 harvest and the second largest exporter, it should reach a volume above 2 million tons, behind only the USA. The countries with the largest world production today are India, China and USA.

 

AgriBrasilis – Are we competitive internationally?

Miguel Faus – Yes. Our main competitors are USA and Australia, as well as West Africa. Brazil has achieved greater market share thanks to the quality of its product and at a competitive price.

In addition, from the last harvest, we were able to supply the markets throughout the year and not only in the second half of the year, as was the case previously when production was lower.

 

AgriBrasilis – What can be done to promote improvements?

Miguel Faus – A joint project by ANEA, ABRAPA and APEX is already underway to promote Brazilian cotton in the main markets, in Asia and Turkey. In addition, the sector has invested in new planting technologies and new seed varieties. The logistics that have always been a bottleneck have already improved a lot, but there is room for efficiency increases throughout the export process.

 

AgriBrasilis – What are the main cotton producing centers in Brazil?

Miguel Faus – Mato Grosso is the main producing state (70%) and Bahia the second one (15%). The others states are Minas Gerais, Goiás, Mato Grosso do Sul, Tocantins and Piaui states. At Paraná and São Paulo State there are small productions.

 

AgriBrasilis – The cotton crop still suffers the attack of several pests, especially the boll weevil, how much can be estimated from yield losses due to the presence of insects and pests in the field?

Miguel Faus – Nowadays, losses due to these reasons are limited as there are several ways to combat the different pests that appear when planting cotton. The problem is sometimes the cost of combat.

 

AgriBrasilis – Among large crops, does cotton have a high investment risk? What are the reasons?

Miguel Faus – There is no high investment risk for cotton crops. It is more expensive than soybeans and corn and should be carried out by farmers who are willing to invest. It is not an easy crop, but its returns more than compensate for the investments if they are done well.

Care ranges from the land choice, seeds, fertilizers, pesticides, fumigators, harvesters and processing plants. So, cotton requires a long-term commitment from the farmer. In addition, it demands much more labor than other crops.

 

AgriBrasilis – During crisis times, the textile market tends to decrease its demand. How was the market’s response this year due to COVID-19?

 Miguel Faus – There was a reduction in consumption, at first, worldwide, due to the closing of economies, and retail in general. When retail begun to reopening and the Brazilian governs emergency credit was distributed, this situation was quickly solved and the demand returned in an important way.

The pandemic peak reached Brazil in the middle of the agricultural off-season and the recovery coincided with the beginning of the harvest, which contributed to the fact that the damage was not greater.

 

AgriBrasilis – What can be said about the last Brazilian cotton harvest?

 Miguel Faus – It was a record harvest, of more than 3 million tons. In addition, the climate helped and the quality in general was very good, which helps a lot in the consolidation of the Brazilian feather in the main consumer markets.

 

AgriBrasilis – Will there be productive change in Brazil for next year?

Miguel Faus – The climate, more than anything, is affecting soybeans planting and will affect cotton plantings. About 90% of the Mato Grosso State cotton is planted at the second harvest of the year, just after the soybean harvest.

We expect a reduction. As for yield, it will not be easy to maintain the same result of the 19/20 harvest, which was very good. All in all, at this moment there are several estimates that project a reduction of 10% to 20%.