Cotton production expected to increase by 50%

The cotton industry is booming and after a bumper harvest in 2018, production looks set to double again in 2019. Hennie Bruwer, CEO of Cotton South Africa, said the production area was expected to increase 30% to about 50 000ha, which would produce about 300 000 lint bales. This was 50% more than the previous year.

Louis Olivier, chairperson of the South African Cotton Ginners’ Association, said that after nearly coming to a standstill, the cotton industry had started to become profitable again in 2012.

He ascribed this to several technological advances such as the development of genetically modified cultivars, harvest mechanisation, as well as a “holistic lint marketing strategy”.

Olivier and Bruwer both agreed that there would not be sufficient ginning capacity for the anticipated growth in production, despite investments made in upgrading capacity at the Loskop and Koedoeskop gins.

“Given the size of the harvest, ginning capacity will have to be addressed urgently,” said Olivier. Local cotton prices were derived from international lint prices, which Bruwer said were projected to be at US80c/lb (about R24/kg) in 2019. This was US10c/lb higher than the long-term average. However, climatic conditions such as the volume of rainfall and temperature variations, as well as insect pest infestations, could affect production yields and quality, he said.

Bruwer said he was upbeat about the industry as a whole and added that government had indicated a willingness to extend the current term of the Sustainable Cotton Cluster by a further five-year period. – Sabrina Dean

GINNING CAPACITY IS STILL INADEQUATE

SABRINA DEAN. LEFT: Technological advances such as genetically modified cotton cultivars and harvest mechanisation have contributed to the revival of the local cotton industry.