Cotton shortage means higher prices, alternative materials

In the 2010 growing season, major cotton-producing countries such as China and India, among others, were hit hard by environmental factors and left without their expected cotton crop for the year.

As of Feb. 11, world cotton market prices hit $1.90 per pound, a price twice as much as it was last year.

“The last time prices were this high was around 100 years ago,” said Marissa Zorola of the fashion merchandising faculty.

Kari Jones, a radio, television and film junior, browses through clothes. The price of cotton has more than doubled in the past year, and clothing prices are expected to rise in the coming months. (Photo Illustration by Kalani Gordon / Staff Photographer)

Now, the market faces a high demand and low supply. For American consumers, this will make an impact, but Jeffrey Rous of the economics faculty said it’s not as big an increase as people may think.

“To the extent that you can substitute polyester and other materials, the percent increase for the consumer should be around five percent or even lower,” Rous said. “It’s not going to be as big a deal as what you think, but certainly in the manufacturing industry, it is going to be a big deal.”

The financial blow taken by stores will be more than that of the consumer, but in some cases may turn out to be more than expected.

“For the retailer, they are going to have to absorb some of the cost,” Zorola said. “A value-driven retailer like Walmart is not going to be very keen on raising the price of their goods. The consumer is not going to want to bear that cost, but they are going to have to be willing too.”

Stores like 2nd Street Vintage, located on the Denton Square, may not see as much of a shift in prices because they have already unique fabric content.

“Woven cotton is already pricey as it is,” said Leah Wood, co-owner of 2nd Street Vintage. “Market manufactures try to get you to buy for the next season. So we’re already three months ahead and have our summer clothes put on order, so it wouldn’t even affect us until after summer, if at all.”

Consumers might begin to see more varieties of materials in clothing stores.

“What we’re going to see, though, is probably more blends, and the consumer, I don’t think, is against blends as long as they see some of that cotton in there,” Zorola said. “And as consumers become smarter, which they are because of the Internet, they’ll become aware of that fact that maybe they do or should prefer a cotton-polyester blend, because it will be stronger.”

Beyond the retailer, Zorola said clothing manufacturers may decide to turn to other fabrics.

“The fabric manufacturer may decide to produce thinner fabrics, or more rayon-cotton blends, because rayon is a cellulose fiber, so it would combine well with cotton,” Zorola said.

Change may not always be good though for some shoppers who are used to their old clothes.

“A savvy shopper might say, ‘This denim pant doesn’t feel like my other denim, or this T-shirt is a little more see tough than what I’m used to.’ Those are things that [manufacturers] are going to have to decide what’s more important to the consumer,” Zorola said.

As clothing prices rise up as now expected, and with a predicted drought to continue in 2011 in U.S. cotton-producing regions, consumers may begin to worry about whether prices are going down anytime soon.

However, while the U.S. produced 12 percent of the world’s cotton in the 2009 to 2010 season, China and India produced 32 percent and 23.2 percent, respectively. Rous said he believes another bad season won’t kill the economy just yet.

(Source: http://www.ntdaily.com/?p=52075)