Brazilian Cotton Meeting the challenges of the financial crisis

摘要

Ladies and Gentlemen, It is indeed an honor to speak to you again about Brazilian Cotton, and today to tell you how we have set about coming to terms with historical low prices, rising costs and the shortage of credit. I do not propose to talk "numbers" with you. Brazil production has declined this season by about 20% to just over 1.2 million tons, and we can expect further reductions next season if the soy bean price maintains the current more attractive levels. However it is not only price which has forced the grower to move away from cotton, but the unprecedented increase in costs for fertilizer and other agro chemicals, as well as the lack of available credit to buy them; cotton requires considerable more financial input per hectare than soybeans due to these costs.