Mato Grosso drives growth, and Brazil leads global cotton exports

Brazil is expected to consolidate its position as the world’s leading cotton exporter with the 2025 harvest. Producers plan to harvest 3.95 million tons and export 2.9 million tons to international markets.

In 2024, Brazil surpassed the United States—longtime leader in global cotton exports—for the first time in decades. Due to the trade war, Brazilian cotton gained ground in the Chinese market, which U.S. suppliers had previously dominated.

Last year, Brazil produced 3.7 million tons and exported 2.68 million tons, generating US$ 5.2 billion in revenue. The data comes from Conab (National Supply Company) and the Ministry of Development, Industry, Trade and Services.

“Brazil’s leadership in cotton exports is the result of years of consistent work in the sector, with investments in quality, traceability, and sustainability. Today, Brazilian cotton is recognized abroad for these attributes, especially in demanding markets like Asia,” said Gustavo Piccoli, president of Abrapa (Brazilian Cotton Growers Association).

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

Brazilian Cotton Exports | Jan 2022 – May 2025 | TEUs

Source: DataLiner (click here to request a demo)

Brazil’s main cotton buyers in 2024 (IBGE):
China: US$ 1.7 billion
Vietnam: US$ 1 billion
Bangladesh: US$ 604.4 million
Pakistan: US$ 519.9 million
Turkey: US$ 460.9 million

Mato Grosso accounts for 70% of Brazil’s cotton production
In 2024, Mato Grosso produced 2.6 million tons, representing 70% of the national output. The state’s growth has been supported by programs like Proalmat, created in the 1990s, which offers tax incentives such as ICMS reductions and a 65% presumed credit on interstate sales.

According to Mato Grosso’s Department of Economic Development (Sedec), 2,153 companies were registered under Proalmat in 2023. Internal and interstate sales reached R$ 18.3 billion, up 51.17% compared to the previous year.

Tariff war creates instability in global cotton supply chain
In May 2024, the average export price for Brazilian cotton was US$ 1,954.60 per ton. In May 2025, the price dropped to US$1,609.30—a 17.7% decrease (Ministry of Development, Industry, Trade, and Services).

International tariffs have led to market volatility, with U.S. measures and Chinese responses having a direct impact on prices. “We remain alert to the sector’s challenges, such as international price fluctuations and the increasing demands for sustainable practices—crucial factors for long-term competitiveness,” said Piccoli.

Global outlook and market competition
According to Miguel Faus, president of Anea (National Cotton Exporters Association), weak global demand is keeping prices low. “China remains a key destination, but U.S. competition is intensifying in markets where Brazil has strengthened its presence—such as India, Egypt, Pakistan, Bangladesh, Vietnam, and Turkey,” he noted.

Between July 2024 and March 2025, Brazil shipped 2.2 million tons. In April alone, exports totaled 239,000 tons, a 0.9% drop from the previous year. March also saw a 5.3% decrease.

Vietnam overtakes China as top importer of Brazilian cotton
From August 2024 to April 2025, Vietnam imported 462,000 tons, or 19% of total shipments, surpassing China as the top destination. This shift reflects a decrease of 775,000 tons in exports to China over the same period.
Brazil targets growth in Asian cotton markets
In June, Abrapa and state-level cotton associations visited China and South Korea for the second time in 2025, aiming to strengthen ties with the local textile industries. The Brazilian delegation attended China International Cotton Conference (CICC 2025)—one of the country’s major industry events.

Beyond textiles, China offers opportunities in cottonseed processing for animal feed. The high-protein, high-energy, high-fiber product is especially used for ruminants.

South Korea is another strategic partner with a well-developed textile and design industry. In 2024, Brazil ranked 8th among its top buyers, and 48% of Korea’s imported cotton originated from Brazil.

Source: Gazeta do Povo

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