Cotton USA targets Thailand as key Asean market

Thailand is one of the Asean countries being targeted by the US cotton industry to promote the use of its material, thanks to the crowded textile and garment manufacturing sector and its potential to become a regional sourcing hub.

"Thai exporters need to meet their obligations in terms of quality and delivery, particularly with no defaults, so there's a great opportunity to attract buyers in Thailand," Kraipob Pangsapa, Cotton USA's Thailand representative, said yesterday.

However, demand for cotton in Thailand has remained unchanged for some time, with imports from the US having reached 152,000 tonnes, accounting for 40 the per cent of the country's need for 370,000 tonnes last year. Thailand's other main import sources are Australia and Brazil.

It is forecast that the US's global cotton exports will reach 3.5 million tonnes this year, at an average price of US$4,400 (about Bt132,000) per tonne.

However, about 90 per cent of the production has already been ordered and is committed for delivery by December. As a result, new customers have to wait for the next crop, which will enter the market from September to November.

Kraipob said cotton buyers would face an overall global shortage in the next harvest season due to climatechange problems. However, American growers have planted more cotton to serve market needs.

As a result, Cotton USA plans to launch many activities in Thailand to encourage manufacturers use more highquality material.

It aims to expand its "Supply Chain Marketing" (SCM) programme in Thailand to include other Asean member countries. The programme was initiated to connect international buyers sourcing for US richcotton products with Thai spinners that are Cotton USA licensees.

Following positive feedback from international buyers, the SCM programme is now expanding to cover more Asean countries as a competitive sourcing destination for highquality products that use a high percentage of US cotton.

With the first Thai SCM programme being successful last year, Kraipop said it aimed to promote Thai textile mills utilising more than 50 per cent of US cotton in their yarns. This will also promote their yarns to Asean weavers, knitters and garment manufacturers sourcing for high quality from Thailand.

The programme has created opportunities for Thai textile manufacturers to expand their business and increase their customer base throughout Asia, he added.

So far, 50 Thai brands have been licensed by Cotton USA as using highquality cotton from the US. In addition, these brands have been distributed in leading department stores.

Kraipob said the programme should double from 19 member mills to about 40 as it expands to include spinners that use a high percentage of US cotton in Asean.

The "Supply Chain Marketing Buyers Tour" was held in Thailand in the first quarter of the year. It brought 27 global buyers and retailers from the US, Europe and Asia to the Kingdom to meet with US cotton textile and apparel suppliers from across Southeast Asia.

The event provided opportunities for overseas buyers to meet the entire supply chain in one location, said Kraipob.

In addition, Cotton Incorporated, a related unit that works in parallel with Cotton USA, will promote advanced technology in the textile industry.

(Source: http://www.nationmultimedia.com/2011/05/04/business/Cotton-USA-targets-Thailand-as-key-Asean-market-30154515.html)