Brazil’s Cotton Sector Chamber ends 2025 projecting higher exports and cautious production

The Cotton and Derivatives Sector Chamber held its final meeting of the year on December 2, 2025, bringing together leaders from the production chain to evaluate the results of the 2024/2025 crop and outline strategies for 2026. The meeting was coordinated by Gustavo Piccoli, president of the Brazilian Cotton Producers Association (Abrapa), and included representatives from the state associations of Bahia (Abapa), Goiás (Agopa), Mato Grosso (Ampa), Mato Grosso do Sul (Ampasul), Minas Gerais (Amipa) and Piauí (Apipa).

The meeting also included representatives from the National Cotton Exporters Association (Anea), the Ministry of Agriculture and Livestock (Mapa), the Brazilian Textile and Apparel Industry Association (Abit) and other sector organizations.

Sector policy and international leadership of Brazilian cotton
Piccoli highlighted the need for a coordinated agenda between government and the private sector to strengthen cotton consumption in Brazil and abroad.

“The growth in cotton consumption depends on public policies that value natural fiber. Unlike synthetic fibers, it does not pose health risks nor cause long-lasting environmental impacts. This agenda needs to advance simultaneously in the domestic and international markets,” he said.

He emphasized Abrapa’s work in enabling financial instruments such as the Producer Equalizer Payment Award (Prepo) and specific credit lines from BNDES, ensuring that producers can wait for better prices without compromising business liquidity.

Abrapa’s executive director, Marcio Portocarrero, explained that access to these instruments is decisive in the face of price volatility and rising financial costs, preserving the investment capacity and competitiveness of national cotton farming.

National production in 2026: strategic reduction
The projection for the 2026 crop indicates a 5.5% reduction in planted area compared to 2025, resulting in estimated production of 3.829 million tonnes, a decline of 9.9% compared with the 4.1 million tonnes from 2024/2025.

The president of Ampa, Orcival Guimarães, cited sector indebtedness and high interest rates as reasons for caution, while the president of Abapa, Alessadra Zanotto, noted that reduced production also affects Bahia, especially in non-irrigated areas.

Brazilian exports continue to grow, but with lower revenue
Abrapa’s director of international relations, Marcelo Duarte, presented data confirming that Brazil remains the world’s largest cotton exporter, although with lower revenue due to the drop in international prices.

Cotton Brazil’s projection indicates that the country should reach a 33% global market share in 2026, with 3.1 million tonnes exported, a 2% increase in global participation. China remains the main buyer, accounting for 20% of Brazilian exports, followed by India, with 92,000 tonnes and a 17% share.

Below is a historical overview of Brazilian cotton exports starting from January 2022. The chart was prepared using DataLiner data:

Brazilian Cotton Exports | Jan 2022 to Oct 2025 | TEU

Source: DataLiner (Click here to request a demo)

Duarte highlighted the role of the Brazilian Trade and Investment Promotion Agency (Apex) in export growth, noting that the value of Brazilian cotton fiber doubled from US$ 2.6 billion in 2019 to US$ 5.2 billion in 2024.

The president of Anea, Dawid Wajis, pointed out that the international environment still generates uncertainties, despite the trade agreement between the United States and China.

Domestic consumption challenges and the textile industry agenda
Abit’s honorary president, Fernando Pimentel, noted that the national industry faces competitive challenges, especially with the price of imported yarn from China, which is lower than the cotton exported by the Asian country.

“This asymmetry undermines the competitiveness of the Brazilian industry and requires measures that protect a strategic chain for the country,” he said.

Pimentel also highlighted the advance of synthetic fibers, which rose from 37% of industrial consumption in 2005 to 56% in 2025, and presented a proposal for an integrated agenda to increase cotton consumption in Brazil, based on five pillars: research and innovation; competitiveness and market; communication and sustainability; institutional coordination; and market intelligence.

Next steps for the Cotton Sector Chamber
The next meeting is scheduled for March 23, 2026, when discussions on competitiveness, expansion of domestic consumption and the international strengthening of Brazilian cotton will resume.

Source: Portal do Agronegócio

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