Cotton industry innovations help Brazil gain share in international market

Brazilian cotton boasts a distinctive character, with its fibers finding diverse applications, including clothing, animal feed, paper production, and even coffee filters. While its natural color is white, the cotton industry has evolved to produce variants in shades like brown and green. Notably, in 2019, the World Trade Organization (WTO) inaugurated World Cotton Day, observed on October 7th.

As of August 2023, cotton industry production had generated revenues of R$ 30 billion, securing the 5th position in Brazil’s list of top agricultural products. This ranking is based on the latest Gross Value of Agricultural Production (VBP) assessment, prepared by the Ministry of Agriculture and Livestock through the Secretariat of Agricultural Policies (SPA).

Numerous approaches can enhance cotton cultivation, including genetic improvement of the cotton crop. This focuses on enhancing fiber quality, resistance to pests and diseases, and temperature tolerance. The Secretariat of Innovation, Sustainable Development, Irrigation, and Cooperativism (SDI) is dedicated to developing innovations that help producers increase productivity sustainably. One such method is precision agriculture, which involves tracking, collecting, and analyzing data using technology to facilitate decision-making for producers and workers, such as determining the optimal dosage of inputs.

Exports and Market Expansion

In 2022, global cotton trade amounted to US$ 23.72 billion, with China being the largest importer worldwide. Brazil ranked second in cotton exports, trailing only the United States.

The chart below shows Brazil’s cotton exports (hs 5200-5201), measured in tonnes, recorded between January 2019 and July 2023. The data is from DataLiner.

Cotton exports from Brazil | January 2019 – July 2023 | WTMT

Source: DataLiner (click here to request a demo)

Regarding international market access, Brazil began exporting cotton meal to China in 2019, followed by cotton seeds to Colombia in 2021 and cotton lint to Egypt in January.

The opening of the Brazilian cotton market to Egypt occurred in 2023. The Secretariat of International Relations (SCRI) estimates that Brazil has the potential to supply 20 to 25% of Egypt’s demand, which currently stands at 110 to 120 thousand tons per year.

The agricultural attaché in Cairo, Rafael Mohana, highlights Brazilian cotton’s high quality and competitive prices. “The country can capture a portion of the international market, and trade promotion efforts will be essential for Brazil to establish its presence in Egypt.”

Source: MAPA

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