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CONTENT
IN THE FIELD: REGIONS OF U.S. COTTON PRODUCTION 05
COTTON USA promotes U.S. cotton fiber and U.S. Cotton Production by State 06
manufactured cotton products around the globe. U.S. Cotton Production Map 07
Our reach extends to more than 50 countries through IN THE FIELD: COTTON VARIETIES PLANTED, 2015 CROP 10
17 offices around the world. Through COTTON USA American Pima Cotton 13
programs, we touch lives every day by setting the Varieties of Upland Cotton 14
global standard for purity, quality and responsibility.
FROM FIBER TO FABRIC: CLASSIFICATION OF U.S. COTTON 19
We promise consistently excellent quality to inspire
Official Cotton Standards 21
your unique style of life.
Cotton Properties for Selected Fabrics 23
Prepared and distributed by Cotton Council CCI thanks the NCC; Cotton Incorporated; FROM HARVEST TO PORT: THE BALES 26
International (CCI) and the National Cotton the American Cotton Shippers Association U.S. Cotton Exports by Port 28
Council of America (NCC), this guide (ACSA); the American Cotton Marketing Bale Weights and Sizes 28
provides information to potential buyers Cooperatives (AMCOT); California Cotton
Bale Sampling and Packaging 29
of U.S. cotton about the fiber properties of Alliance; the Committee for Cotton
the principal varieties of cotton grown in Research; ICE Futures U.S.; the National FROM PORT TO PORT: THE COTTON USA MARKET 31
the various regions of the U.S. Cotton Belt. Cottonseed Products Association; Plains Contracts and Information for Selling Overseas 32
Cotton Growers, Inc.; Southern Cotton How U.S. Cotton is Marketed—Shipment and Delivery Terms 33
Information such as the names and
Growers, Inc.; Supima; the USDA; U.S.
addresses of exporting companies, Letter of Credit 36
cotton yarn and textile manufacturers; and
production and ginning seasons, official Export Guarantee Programs 38
COTTON USA licensees around the world
U.S. cotton standards and packaging and
for their continued support. CONTACT INFO 40
transportation data is also included. Unless
otherwise stated, the information source is Cotton Organizations 41
the U.S. Department of Agriculture (USDA). Merchandisers and Handlers 42
CCI Offices and Local Representatives 52
CROP & AREA 2010-11* 2011-12* 2012-13* 2013-14* 2014-15* 5-YR AVG**
UPLAND
Seattle
Tacoma
MID-SOUTH 3,827 4,542 4,242 2,675 3,333 3,724
Arkansas 1,176 1,277 1,297 720 787 1,051
Duluth
Louisiana 437 511 478 326 404 431 Ogdensburg
Mississippi 848 1,200 993 719 1,078 968
Buffalo
Missouri 685 741 731 496 570 645
Detroit
Tennessee 681 813 743 414 494 629
Oakland
SOUTHWEST 8,344 3,656 5,225 4,365 6,492 5,616 San Francisco
Kansas 82 69 70 41 48 62
Norfolk
Oklahoma 422 87 155 154 269 217
Los Angeles
Texas 7,840 3,500 5,000 4,170 6,175 5,337 Long Beach Wilmington
San Diego
WEST 1,105 1,484 1,197 873 768 1,085 Charleston
Arizona 610 800 605 480 490 597 Savannah
California 380 556 508 333 214 398 Mobile
New Mexico 115 128 84 60 64 90 Houston New Orleans
Galveston
Corpus Christi
TOTAL UPLAND 17,600 14,722 16,535 12,275 15,753 15,377 Laredo
ELS
Arizona 4 20 7 3 30 13
California 464 785 753 610 500 622
New Mexico 5 6 5 6 8 6
Texas 31 40 15 15 28 26
10
Deltapine brand varieties were the most 28.2 percent of the acreage planted in the AMERICAN PIMA COTTON
popular planted in 2015, accounting for 31.2 southeastern states, 17.5 percent of the
percent of the United States acreage. This acreage in the south central states, 9.0
Supima is the promotional organization of The annual Supima Design Competition ran
brand accounted for 50.1 percent of the percent in the southwestern states, and 23.2
the American Pima cotton growers. Supima’s for the eighth consecutive year and was a
acreage planted in the southeastern states percent in the western states. The most
primary objective is to promote the increased featured show during New York Fashion
(Alabama, Florida, Georgia, North Carolina, popular Bayer Phytogen varieties were
worldwide awareness and consumption of Week. The objective is always to keep Supima
South Carolina, and Virginia). It accounted PHY 499 WRF, PHY333 WRF, and PHY 339
U.S.-grown American Pima cotton. Supima demand strong for all stakeholders from
for about 29.8 percent in the south central WRF accounting respectively for 6.1, 5.0,
apparel and home fashion products are growers to brands and retailers.
states (Arkansas, Louisiana, Mississippi, and 1.1 percent of the United States acreage
recognized by consumers the world over for
Missouri, and Tennessee), 23.7 percent in planted to Upland cotton.
their soft hand, lustrous color and durability. Three decades of intense advertising and
the southwestern states (Texas, Oklahoma,
Supima® is also the registered trademark promotional activity has yielded impressive
and Kansas), and 24.9 percent in the Americot brand varieties were the fifth
brand for U.S.-grown American Pima cotton, results. Supima has become popular in the
western states (Arizona, California, and New most popular and accounted for about
the world’s finest, extra-long staple cotton. home textile category and can be found in
Mexico). Deltapine’s most popular varieties 6.4 percent of the U.S. acreage planted in
many of the premium towel and sheeting
were DP 1044 B2RF, DP 1219 B2RF, DP 2015. Dyna-Gro varieties were the sixth
Supima licenses use of the Supima® lines offered by top brands. In apparel,
1252 B2RF, and DP 1553 B2XF, accounting most popular and accounted for about 4.9
trademark to leading spinners, knitters, Supima has gained a significantly higher
respectively for 5.6, 3.7, 3.4, and 2.0 percent percent of the 2015 cotton acreage. All-Tex
weavers, manufacturers, brands and retailers profile. Premium quality Supima apparel
of the U.S. Upland cotton acreage. varieties were the seventh most popular
for apparel and home textile products. can be found in leading brands such as
and accounted for about 2.3 percent of
Licensees use the Supima® brand so Brooks Brothers, Uniqlo, Marks & Spencer,
Bayer CropScience Fibermax brand the 2015 cotton acreage.
their consumers know their products are Tommy Bahama, James Perse, Agave
varieties were the second most popular
made with only the world’s finest cottons. Denimsmith, Michael Stars, Splendid, AG
planted in 2015, accounting for 21.6 percent Phytogen was the most popular brand of
As consumer awareness of Supima has Jeans, Lands’ End, and L.L Bean, and at
of the United States acreage. These American Pima varieties planted in 2015.
grown, the number of Supima licensees a variety of retailers.
varieties accounted for 3.7 percent of the Phytogen variety PHY 805 RF accounted
has expanded to meet that demand. There
acreage planted in the southeastern states, for 40.6 percent of the United States Pima
are currently more than 360 licensees Spinners, knitters, weavers and
1.0 percent in the south central states, 33.4 acreage. Phytogen’s PHY 811 RF was the
representing 37 countries worldwide. manufacturers focused on delivering
percent in the southwestern states, and second most planted American Pima variety
Supima enforces the highest quality and product to the premium market should
28.3 percent in the western states. The and accounted for 32.8 percent of the U.S.
distribution standards to maintain the success consider making Supima a part of their
most popular Bayer CropScience Fibermax crop. Deltapine’s DP 358 RF was the next
and integrity of the licensing program. product offering.
varieties were FM 2011 GT, FM 2484 B2F, FM most popular variety and accounted for
9250 GL, and FM 1944 GLB2, accounting 9.7 percent of the U.S. Pima acreage.
Trends toward higher quality goods for
respectively for about 4.7, 4.3, 3.8, and
affluent consumers have driven Supima TYPICAL FIBER PROPERTIES
2.9 percent of the United States acreage AFD 2485, Bayer CropScience FM 958,
consumption up across all product categories.
planted to Upland cotton. All-Tex 7A21, and Deltapine DP 340 were 1-3/8” or longer with an average length
Designers and brands find that using Supima Fiber Length
the predominate varieties planted by exceeding 1-1/2”
is an ideal way to improve the performance
Bayer CropScience Stoneville brand organic cotton producers. Other varieties
and appearance of their apparel and home Micronaire 4.0 average
varieties were the third most popular planted by organic producers include
fashion offerings. As a consequence, Supima
planted in 2015, accounting for 16.9 All-Tex LA122 and A102, Seed Source Strength 43.4 grams/tex average
demand has expanded from its traditional
percent of the United States acreage. Genetics CT 210, and Downer Cotton
base of dress shirts, sheets and towels to ACTUAL PRODUCTION AND ACREAGE BY STATE 2015-2016
They accounted for 13.4 percent of the Genetics DCG 1374.
luxury knits for women, basic knit T-shirts and
acreage planted in the southeastern ELS Bales* Harvested Acres
even denim. These programs have created
states, 44.7 percent of the acreage in the Estimates of the percentage of the various
profitable niches for manufacturers despite Arizona 43,000 18,000
south central states, 12.5 percent in the varieties of cotton planted in the United
falling prices for most other finished goods.
southwestern states, and 17.1 percent in the States for 2015 were based on informal California 356,000 114,000
western states. The most popular Bayer surveys made by the Cotton and Tobacco
Supima advertises its trademark brand to
CropScience Stoneville brand varieties were Program Classing Offices. Those surveyed New Mexico 16,000 7,300
support the retailers, brands and licensees
ST 4946 GLB2, ST 4747 GLB2, and ST 6448 included ginners, seed dealers, extension
that identify their products’ Supima content. Texas 36,000 15,000
GLB2, accounting respectively for 10.9, 4.2, agents, and other knowledgeable sources.
Supima’s U.S. consumer and trade advertising
and 1.1 percent of the United States acreage
campaign runs in publications such as The TOTAL ELS 451,000 154,300
planted to Upland cotton.
New York Times Sunday Style Magazine, as
(*480 lb. bales)
well as various trade publications. Supima
Phytogen brand varieties were the fourth
also participates in fashion shows and trade
most popular planted in 2015. These
events that reach decision-makers at the
varieties accounted for 15.3 percent of
retail and brand level.
the acreage planted. They accounted for
MID-SOUTH
AR LA MS MO TN
Upland Acres 210,000 Upland Acres 110,000 Upland Acres 320,000 Upland Acres 185,000 Upland Acres 155,000
ST 4946 GLB2 52.63 PHY 499 WRF 32.04 ST 4946 GLB2 29.01 ST 4946 GLB2 48.41 ST 4946 GLB2 30.97
ST 4747 GLB2 17.39 DP 1133 B2RF 21.22 DP 1321 B2RF 16.44 ST 4747 GLB2 14.62 DP 1522 B2XF 16.37
PHY 333 WRF 4.65 PHY 333 WRF 10.30 DP 1133 B2RF 8.60 NG 3406 B2XF 6.62 DP 1518 B2XF 12.24
DP 1518 B2XF 3.76 DP 1321 B2RF 6.39 PHY 499 WRF 6.16 DP 912 B2RF 5.53 ST 4747 GLB2 8.63
DP 1522 B2XF 3.76 PHY 495 W3RF 5.48 PHY 333 WRF 4.59 DG 3385 B2XF 4.40 PHY 333 WRF 7.62
NG 1511 B2RF 2.88 ST 6448 GLB2 4.97 DP 1034 B2RF 4.53 DP 1518 B2XF 3.24 NG 3406 B2XF 4.90
DP 1133 B2RF 2.38 DP 1137 B2RF 4.35 DP 912 B2RF 4.17 ST 5032 GLT 2.83 NG 3405 B2XF 2.78
NG 3406 B2XF 1.96 ST 5289 GLT 3.97 NG 1511 B2RF 3.66 FM 1944 GLB2 2.52 ST 5032 GLT 2.78
NG 3405 B2XF 1.62 DP 912 B2RF 2.16 DP 1538 B2XF 3.44 DP 1522 B2XF 2.29 PHY 499 WRF 2.63
DP 912 B2RF 1.60 ST 4946 GLB2 1.72 DP 1522 B2XF 3.41 DG 2570 B2RF 2.24 DP 912 B2RF 2.44
SOUTHEAST
AL FL GA NC SC VA
Upland Acres 315,000 Upland Acres 85,000 Upland Acres 1,120,000 Upland Acres 385,000 Upland Acres 235,000 Upland Acres 85,000
PHY 333 WRF 19.98 DP 1252 B2RF 18.15 DP 1252 B2RF 17.52 ST 4946 GLB2 25.33 DP 1538 B2XF 19.94 PHY 499 WRF 29.63
DP 1252 B2RF 11.09 DP 1137 B2RF 17.06 PHY 499 WRF 11.87 PHY 333 WRF 16.65 PHY 499 WRF 16.48 ST 4946 GLB2 24.07
PHY 499 WRF 10.59 DP 1553 B2XF 15.30 DP 1050 B2RF 11.70 PHY 499 WRF 12.74 DP 1553 B2XF 10.65 PHY 333 WRF 20.21
DP 1050 B2RF 8.99 DP 1044 B2RF 10.55 DP 1553 B2XF 9.90 FM 1944 GLB2 7.81 ST 4946 GLB2 8.37 FM 1944 GLB2 5.03
PHY 375 WRF 7.98 PHY 499 WRF 7.88 DP 1137 B2RF 7.29 DP 1522 B2XF 4.79 NG 3406 B2XF 7.68 ST 4747 GLB2 3.73
DP 912 B2RF 6.31 DP 1558NR B2RF 5.90 DP 1538 B2XF 7.06 DP 1538 B2XF 3.64 PHY 333 WRF 7.50 PHY 375 WRF 2.45
ST 4747 GLB2 4.80 DP 1555 B2RF 5.85 PHY 333 WRF 4.87 ST 4747 GLB2 3.33 ST 6448 GLB2 7.21 DP 1522 B2XF 2.32
DP 1137 B2RF 4.39 DP 1538 B2XF 5.72 ST 6448 GLB2 3.97 ST 6448 GLB2 2.97 FM 1944 GLB2 2.79 DP 1028 B2RF 2.16
ST 4946 GLB2 3.59 DP 1454 NR B2RF 3.20 PHY 575 WRF 3.44 DP 1518 B2XF 2.65 NG 5007 B2XF 2.40 NG 1511 B2RF 2.07
DP 1321 B2RF 3.33 DP 1321 B2RF 2.57 DP 1555 B2RF 2.94 DG 3385 B2XF 2.32 DP 1518 B2XF 2.37 NG 3406 B2XF 1.89
Percent Acres Planted By State: USDA/AMS Cotton Varieties Planted, 2015 Crop
• Acreage: USDA/NASS Revised-June Planted Acreage Report
SOUTHWEST WEST
KS OK TX AZ CA NM
Upland Acres 16,000 Upland Acres 210,000 Upland Acres 4,800,000 Upland Acres 85,000 Upland Acres 47,000 Upland Acres 35,000
ST 4747 GLB2 26.02 DP 912 B2RF 26.72 DP 1044 B2RF 8.31 DP 1044 B2RF 23.39 PHY 725 RF 26.78 PHY 375 WRF 21.50
PHY 222 WRF 10.83 DP 1044 B2RF 17.12 FM 2011 GT 8.22 ST 4946 GLB2 14.91 PHY 755 WRF 8.25 PHY 499 WRF 17.50
FM 1944 GLB2 9.08 DP 1321 B2RF 9.92 ST 4946 GLB2 8.18 FM 1830 GLT 13.41 PHY 499 WRF 6.46 FM 2484 B2F 12.50
DG 2595 B2RF 8.10 DG 2570 B2RF 7.20 FM 2484 B2F 7.35 DP 1359 B2RF 7.59 ST 5032 GLT 5.25 FM 2989 GLB2 10.00
DP 912 B2RF 6.91 FM 1900 GLT 5.76 FM 9250 GL 6.68 ST 5115 GLT 6.59 DP 1044 B2RF 4.72 DG 2570 B2RF 10.00
FM 1830 GLT 6.14 NG 1511 B2RF 5.52 DP 1219 B2RF 6.36 FM 2334 GLT 6.34 FM 2484 B2F 4.19 FM 2334 GLT 7.67
DP 1321 B2RF 5.20 DP 1410 B2RF 5.44 FM 2334 GLT 4.74 DP 912 B2RF 6.05 MISC 4.15 NG 1511 B2RF 5.00
PHY 339 WRF 4.29 NG 4010 B2RF 3.20 NG 1511 B2RF 4.66 ST 6182 GLT 4.20 PHY 575 WRF 3.93 FM 2011 GT 5.00
NG 1572 RF 4.25 FM 1944 GLB2 2.32 ST 4747 GLB2 4.55 FM 1320 GL 3.97 DP 1553 B2XF 3.92 PHY 333 WRF 3.67
PHY 333 WRF 4.00 ST 4747 GLB2 2.08 DG 2570 B2RF 4.18 DP 1219 B2RF 3.69 FM 1900 GLT 3.91 DG 2450 B2RF 3.33
PIMA
AZ CA NM
Pima Acres 18,000 Pima Acres 115,000 Pima Acres 8,000
PHY 805 RF 62.38% PHY 805 RF 42.63% Individual State Data Withheld
PHY 811 RF 18.64% PHY 811 RF 39.86%
DP 357 5.55% DP 358 RF 7.94% TX
DP 358 RF 4.60% MISC 3.52% Pima Acres 17,000
MISC 4.17% PHY 800 2.98% Individual State Data Withheld
PHY 830 3.81% HA 1432 1.92%
Pima S-7 0.85% DP 340 0.45%
PHY 830 0.43%
HA 211 0.27%
Percent Acres Planted By State: USDA/AMS Cotton Varieties Planted, 2015 Crop
• Acreage: USDA/NASS Revised-June Planted Acreage Report
1-13/32” 45
1-7/16” 46
1-15/32” 47
1-1/2” 48
Methods of Offering Cotton Micronaire shipper would have to carry the cotton longer
Modern communications have revolutionized If bales are stated in the contract, it is usually Practically every contract contains than foreseen in the contract. It is only fair that
the cotton business. Mill buyers and cotton understood that the average net weight specifications for micronaire. Both minimum the shipper be reimbursed by the buyer for
exporters have virtually equal access should be 500 pounds. and maximum levels can be stated. If cotton the additional cost of interest, insurance and
to important supply, demand and price is sold on description or type, the micronaire storage. In no case does this clause entitle the
Quality
information. This has made the process is guaranteed by the exporter. If cotton is sold buyer to delay the shipment by payment of
Cotton quality description should include
for offering cotton on the world market, as on USDA class, it is usually included on the carrying charges.
grade (i.e., trash content), color, staple
well as for submission/acceptance of bids, computer printout.
(length), micronaire and strength (if Weights
considerably more efficient.
applicable). There are several ways to Price There are two primary ways to buy cotton:
Cotton may be offered “on call” or at “fixed describe quality: As previously discussed, the sales contract one is “certified shipping weights final” and the
price.” When cotton is offered “on call,” the price can be “fixed” or “on call” and is usually in other is “net landed weights final.” Certified
1) ON DESCRIPTION:
price is based on premiums or discounts (“on” U.S. cents per pound. shipping weights specify that the cotton will be
Described in terms of Universal Standards
or “off”) in a certain month of the ICE Futures. reweighed by a licensed public weigher before
such as Strict Middling, Light Spotted. Delivery Terms
The base price of the cotton will remain unfixed shipment, with the seller, providing weight
The most common ways to buy cotton are
until the buyer instructs the seller to buy (“fix”) 2) ON TYPE: certificates showing gross weight, tare and net
FOB (free on board), FAS (free alongside ship),
futures in order to establish the final contract Cotton is sold on basis of exporter’s private weights. With net landed weights, the cotton
CNF (cost and freight) or CIF (cost, insurance
price by adding the ICE Futures fixation level type or sample for grade and color. will be invoiced on provisional weights and
and freight). In the case of FOB or FAS, the
to the contract on an “on call,” (“on” or “off” On Description/Type sales, the staple, final settlement will be effected on the basis of
buyer books and pays the ocean freight, and
basis.) The sales price of a fixed-price contract micronaire and strength (if applicable) weights determined upon arrival. The landed
is final at conclusion of the sale and does not
the seller delivers the cotton to the docks
are separately guaranteed. weights are determined by internationally
change, regardless of fluctuations in the ICE of the steamship line specified by the buyer.
3) ON GOVERNMENT CLASS: recognized controllers appointed by the sellers
Futures market prices. Business results mostly FOB/FAS contracts should specify the loading
Cotton is described in terms of USDA class for at the time of shipment.
from firm offers, mill inquiries or bids received range (i.e., West Coast, Gulf or East Coast). The
grade, color, staple and micronaire. buyer is responsible for costs after the cotton Payment
from abroad.
Common forms are: is delivered to the steamship line. In CNF, Typically, Letters of Credit are required.
The Contract the seller is responsible for all shipping costs The timing of the opening duration and other
(a) GREEN CARDS:
The natural evolution of improved excluding marine insurance. Under CIF, the details should be specified in the contract.
The original classification given to the cotton
communication is that business is concluded seller has additional responsibility for providing There are numerous other items that might
producer by the USDA Classing Board.
via a phone call between the buyer and the marine insurance. Once the cargo arrives and is be specified in any L/C for U.S. cotton sold in
The shipper presents to the buyer a notarized
seller (or agent). It is the foundation of the discharged from the ship, the buyer becomes the export market, including shipment dates,
computer printout of the USDA classing.
cotton trade that this verbal commitment is responsible for all costs. carrying charges and marine insurance, which
contractually binding. The verbal commitment (b) FORM A: must be agreed upon by the parties involved.
is reconfirmed in writing by either email or Classification is made on the basis of samples Shipments
The L/C does not replace the contract. It is the
facsimile through the local sales agent. The submitted directly from a public warehouse to Shipment terms can be for one month or
facility for payment under the contract.
seller then prepares the contract form and the USDA Classing Board. several months. A custody bill of lading should
sends it to the buyer (or agent for submission be allowed, as well as partial shipments, Arbitration
(c) FORM R: however, neither buyers nor sellers like partial In the event of disputes over quality or
to the buyer), who signs it and returns it to the
The form used by the USDA to rewrite the shipments. Due to the complexity of the technical matters, the rules of arbitration
seller. This formal contract is the written record
original green card class on certificate. This shipping business, partial shipments cannot should be specified in the contract. Dispute
for both parties of the previously agreed
must be done within 12 months of the original always be avoided. Sometimes cotton is loaded settlements should be pursuant to the rules
upon terms of the business. A good contract
classing date. at more than one port. The introduction of mutually agreed upon in the contract.
will spell out all important provisions of the
sales agreement. Most exported U.S. cotton containerized shipments has resulted in less
is sold on a standard contract form, usually shipper control over the loading. Once the
Growth specifies the origin of the cotton to be exported.
incorporating International Cotton Association Common growths are:
cotton has been loaded in containers, the The recognized cotton arbitration boards are:
Ltd. (ICA) or ACSA Rules. steamship line only controls the vessel on
BELGIUM: Association Cotonnière de Belgique
• American (i.e., no specific origin) which the container is actually transported,
BRAZIL: Bolsa de Mercadorias & Futuros, São Paulo
• San Joaquin Valley (SJV) meaning that shippers are at the mercy of the
Quantity EGYPT: Cotton Exporters Association in ARE
• California/Arizona
Quantity can be specified in bales, pounds or steamship lines. FRANCE: Association Française Cotonnière
• Orleans/Texas (Texas, Oklahoma, New Mexico,
metric tons. It is generally understood that GERMANY: Bremer Baumwollbörse
Missouri, Kansas, Louisiana, Mississippi, Tennessee Carrying Charges INDIA: The East India Cotton Association
the quantity stated in the contract is subject and Arkansas)
A carrying charge is assessed against the ITALY: Associazone Cotoniera Liniera e delle Fibre Affini
to a tolerance of 3 percent to account for • Memphis/Eastern Territory (Arkansas, Tennessee,
Louisiana, Mississippi, Missouri, Georgia, Alabama, buyer in case of unforeseen delays in opening JAPAN: Japan Cotton Arbitration Institute
differences in bale weight, etc. POLAND: Gdynia Cotton Association
North Carolina, South Carolina and Florida) the L/C or in providing available freight space
SPAIN: Centro Algodonero Nacional
(in case of FOB or FAS). In that case, the UK: International Cotton Association, Ltd.
GSM-102 GUARANTEE PROGRAM Eligible Countries or Regions: is in response to rulings by the World Trade
The USDA’s export credit guarantee Interested parties, including U.S. exporters, Organization (WTO) that export credit
programs help ensure that credit is available foreign buyers and banks, may request that programs must be risk-based and that fees
to finance commercial exports of U.S. the CCC establish a GSM-102 program for must cover long-term program operating costs
agricultural products, while providing a country or region. Prior to announcing and losses.
competitive credit terms to buyers. By the availability of guarantees, the CCC
Financing:
reducing the financial risk to lenders, credit evaluates the ability of each country and
The CCC-approved foreign bank issues a dollar
guarantees encourage exports to buyers foreign bank to service CCC-guaranteed
denominated, irrevocable L/C in favor of the
in countries — mainly developing countries debt. New banks may be added or levels
U.S. exporter, ordinarily advised or confirmed
— where credit is necessary to maintain or for current banks changed (increased or
by the financial institution in the U.S. agreeing
increase U.S. sales, but where financing may decreased) as information becomes available.
to extend credit to the foreign bank. The U.S.
not be available without such guarantees.
Eligible Commodities: exporter may negotiate an arrangement to
EXPORT CREDIT GUARANTEE PROGRAM The CCC selects agricultural commodities be paid as exports occur by assigning to the
(GSM-102) and products according to market potential U.S. financial institution the right to proceeds
The Export Credit Guarantee Program (GSM- and eligibility based on applicable legislative that may become payable under the CCC’s
102) underwrites credit extended by the and regulatory requirements. guarantee. Under this arrangement, the
private banking sector in the U.S. (or, less exporter would also provide transaction-related
Participation:
commonly, by the U.S. exporter) to approved documents required by the financial institution,
The CCC must qualify exporters for
foreign banks using dollar-denominated, including a copy of the export report, which
participation before accepting guarantee
irrevocable L/Cs for purchases of U.S. food must also be submitted to the CCC.
applications. An exporter must have a
and agricultural products by foreign buyers.
business office in the U.S. and must not be Defaults/Claims:
USDA’s Foreign Agricultural Service (FAS)
debarred or suspended from participating If the foreign bank fails to make any payment as
administers the programs on behalf of the
in any U.S. government program. Financial agreed, the exporter or assignee must submit
Commodity Credit Corporation (CCC), which
institutions also must meet established a notice of default to the CCC. A claim for loss
issues the credit guarantees. The GSM-102
criteria and be approved by the CCC. also may be filed, and the CCC will promptly
program covers credit terms of up to two-
pay claims found to be in good order. For CCC
and-a-half years. The CCC sets limits and advises each
audit purposes, the U.S. exporter must obtain
approved foreign bank on the maximum
Under the GSM-102 program, the CCC documentation to show that the commodity
outstanding amount that the CCC can
guarantees payments due from approved arrived in the eligible country, and must maintain
guarantee for that bank. The exporter
foreign banks to exporters or financial all transaction documents for five years from the
negotiates the terms of the export credit sale
institutions in the U.S. The CCC provides date of completion of all payments.
with the importer. If the exporter anticipates
the guarantee, but the financing must
being paid at the time of shipment, the ADDITIONAL INFORMATION
be obtained through normal commercial
exporter and importer must work closely If you wish to participate in the GSM-102, call
sources. Typically, 98 percent of principal
during negotiations with the eligible U.S. the Credit Programs Division, Registration and
and a portion of interest at an adjustable
financial institution and the eligible foreign Operation Branch at 202-720-6211, or send
rate are covered by a guarantee.
bank. This will help ensure that arrangements a fax to 202-720-2949 to request program
Because payment is guaranteed, financial are firmly in place for the U.S. financial regulations and applicable notices and
institutions in the U.S. can offer competitive institution to pay the exporter and to extend announcements.
credit terms to the foreign banks, usually with credit to the foreign bank.
Export credit guarantee program information
interest rates based on the London Inter-Bank
Once a firm sale exists, the qualified U.S. and details of recent program changes are
Offered Rate, or LIBOR. Any follow-on credit
exporter must apply for a payment guarantee available on the FAS website: http://www.fas.
arrangements between the foreign bank and
before the date of export. The exporter usda.gov/excredits/exp-cred-guar.asp
the importer are negotiated separately and
pays a fee calculated on the dollar amount
are not covered by the CCC guarantee. Gram announcements of GSM-102 allocations
guaranteed, based on a schedule of country
by country or region are posted at:
Program announcements issued by FAS ratings and rates applicable to different
http://www.fas.usda.gov/excredits/ecgp.asp
provide information on specific country credit periods.
and commodity allocations, length of credit For further information, contact: Credit
Fee rates are based on a country risk
periods and other program information and Programs Division, Office of Trade Programs,
assessment that the CCC has undertaken,
requirements. FAS/USDA, Stop 1025, 1400 Independence
as well as the repayment term (tenor) and
Ave. SW, Washington, DC 20250-1025. General
repayment frequency (annual or semiannual)
information about FAS programs, resources and
under the guarantee. The new structure
services can be found at: www.fas.usda.gov
CONTACT INFO
Cary, NC 27513 4141 E. Broadway
Tel: 919-678-2220 Phoenix, AZ 85040
Fax: 919-678-2230 Tel: 602-792-6002
www.cottoninc.com Fax: 602-792-6004
www.supima.com
Committee for Cotton
Research United States Department
Supporting organizations, merchandisers, handlers, of Agriculture (USDA)
The Cotton Foundation
and CCI offices and local representatives P.O. Box 783 Foreign Agricultural Service
1400 Independence Ave., SW
Cordova, TN 38088
Washington, DC 20250
Tel: 901-274-9030
Tel: 202-720-9516
Fax: 901-725-0510
Fax: 202-690-1171
www.cotton.org/foundation
www.fas.usda.gov
ICE Futures U.S.
One North End Ave.
New York, NY 10282
Tel: 212-748-4000
Fax: 212-643-4537
www.theice.com
National Cotton Council
of America
P.O. Box 2995
Cordova, TN 38088 or
7193 Goodlett Farms Parkway
Cordova, TN 38016
Tel: 901-274-9030
Fax: 901-725-0510
www.cotton.org
Many of the listed firms have branch AMCOT Barrentine Company Cargill Cotton Chesnutt Cotton Co. Darden Cotton Company
offices which are not included P.O. Box 2827 P.O. Box 11076 Selma, AL 2017 Broadway P.O. Box 638
here, and some are trade names or Lubbock, TX 79408 Bakersfield, CA 93389 15 Wilkins Road Lubbock , TX 79401 Albertville, AL 35950
subsidiaries of parent companies. Tel: 806-763-8011 Tel: 661-397-7017 Selma, AL 36701 Tel: 806-762-4648 Tel: 256-878-0241
Fax: 806-762-7335 Fax: 661-397-8332 Tel: 334-874-5531 Fax: 806-762-0134 Fax: 256-878-0242
ACG Cotton Marketing, LLC www.amcot.org craig@pimatrader.com Fax: 334-322-7686
P.O. Box 2463 wally@wldsolutions.com Choice Cotton Company, Inc. Drachenberg Trading Company
Lubbock, TX 79408 BTG Pactual Cargill Cotton 119 East Main Street 7211 78th Street
Tel: 806-740-0970 America Tongzhou 24 Greenway Plaza, Gainesville, GA Prattville, AL 36067 Lubbock, TX 79424
Fax: 806-740-0142 Cotton Trading Inc. Suite 700 124 High Street Tel: 334-380-4745 Tel: 806-794-4547
www.acgcotton.com 2083 Center Avenue Suite 3C Houston, TX 77046 Suite D Fax: 334-365-9261 Fax: 806-687-9445
acg@acgcotton.com Fort Lee, NJ 07024 Tel: 212-441-3017 Gainesville, GA 30501 www.choicecotton.com www.cottontrader.com
Tel: 201-363-4612 Fax: 203-349-7572 Tel: 678-450-4622 rd@cottontrader.com
AddTran Logistics, Inc. Fax: 201-363-4613 www.btgpactual.com Fax: 678-450-7453 Commodity Export Corp.
P.O. Box 71946 www.acsa-cotton.org 4015 - 84th St. Duncan and Son Lines
Albany, GA 31708 www.hntzmy.com/en/ Brighann Marketing, Inc. Cargill Cotton Lubbock , TX 79423-1913 23860 W. U.S. Hwy 85
Tel: 229-438-0141 800 E. Campbell Rd., Ste. 173 Lubbock, TX Tel: 806-798-2299 Buckeye, AZ 85326
Fax: 229-438-7876 American Cotton Sales Richardson, TX 75081 5214 68th Street Fax: 806-798-1771 Tel: 623-386-4511
www.addtran.com P.O. Box 93875 Tel: 559-351-1156 Suite 304 Fax: 623-386-3656
customerservice@addtran.com Phoenix, AZ 85070 www.brighann.com.au Lubbock, TX 79424 Commonwealth Gin www.duncanandson.com
Tel: 480-775-0383 Tel: 806-698-0934 P.O. Box 183
Allbright Cotton Fax: 480-775-0384 Calcot, Ltd. Fax: 806-698-6307 Windsor, VA 23487 Eastern Trading Company
466 W. Fallbrook Ave. #109 P.O. Box 259 Tel: 757-242-3566 P.O. Box 3848
Fresno, CA 93711-6267 American Cotton Shippers Bakersfield, CA 93302 Cargo Control Group Fax: 757-242-9654 Greenville, SC 29608
Tel: 559-276-1664 Association Tel: 661-327-5961 Tel: 864-233-0613
Wachtstr. 17-24, Cotton Exchange www.commonwealthgin.com
Fax: 559-276-2094 88 Union Avenue Fax: 661-861-9870 Fax: 864-242-1038
Bldg, Ste. 415 calphin@commonwealthgin.com
Suite 1204-LB 38 www.calcot.com www.easterntrading.net
Bremen, 28195
Allenberg Cotton Co. Memphis, TN 38103 staff@calcot.com Cornerstone Systems
Germany
P. O. Box 3254 Tel: 901-525-2272 3250 Players Club Pkwy ECOM USA, Inc.
Phone: +49-421-33-8855
Cordova. TN 38088-3254 Fax: 901-527-8303 Caney Valley Cotton Company Memphis, TN 38125 13760 Noel Rd.
Fax: +49-421-338-8588
Tel: 901-383-5000 www.acsa-cotton.org P.O. Drawer 470 Tel: 800-278-7677 Suite 500
www.carcon.com
Fax: 901-383-5010 bmay@acsa-cotton.org Wharton, TX 77488 Fax: 901-842-0671 Dallas, TX 75240
jens.lukaczik@carcon.com
www.ldcom.com Tel: 979-532-5210 www.cornerstone-systems.com Tel: 214-520-1717
Autauga Quality Cotton Fax: 979-282-2935 Fax: 214-520-1859
Carolinas Cotton Growers gmitchel@cornerstone-systems.com
Association Cooperative www.ecomtrading.com
Allenberg Cotton Co. caneycot@att.net
208 Medical Center Ct. 101 Sigma Dr.
1353 Conservancy Dr. E. Cotton Traders International, LLC
Prattville, AL 36066 Cargill Cotton Garner, NC 27529 Empire Truck Lines
Tallahassee, FL 32312 P.O. Box 1647
Tel: 334-365-3369 Div. of Cargill, Inc. Tel: 919-773-2120 2723 Carl Rd.
Tel: 805-765-8566 Lubbock, TX 79408
Fax: 334-365-9261 7101 Goodlett Farms Pkwy Fax: 919-773-4495 Irving, TX 75062
Fax: 805-893-2314 Tel: 806-687-4793
www.aqca.com Cordova, TN 38016-4909 www.carolinascotton.com Tel: 972-870-9455
www.ldcom.com Fax: 806-687-4792
Tel: 901-937-4500 harvey@cottontradersintl.com Fax: 972-870-9314
Baco Trading Fax: 901-937-4461 CC Cotton LLC
Allenberg of California www.empiretrucklines.com
110 East Louisiana, Ste. 201 www.cargillcotton.com 3517 Cimmaron Trl
P.O. Box 26600 DECA International LLC
McKinney, TX 75069 cotton_us@cargill.com Fort Worth, TX 76116
Fresno, CA 93729 2029 Peabody Ave. Ezra Cotton Co. Inc.
Tel: 214-504-1934 Tel: 817-244-5862
Tel: 559-447-1800 Memphis, TN 38104 6022 79th St.
Fax: 559-448-1846 Tel: 901-529-0059 Lubbock , TX 79424
www.ldcom.com Fax: 901-529-0049 Tel: 806-794-9015
www.decaint.com Fax: 806-794-9031
Omnicotton Agri Comercial Ltda. Omnicotton Australia Pty Ltd. Noble Agri
Rua Helena 285, Vila Olímpia, Conjunto 124 Suite 72, 283 Given Terrace 214 W. Market Street
São Paulo, SP Cep: 04552-050 Paddington, QLD, 4064 16190 City Walk, Suite 200
Brasil Australia
Greenwood, MS 38930 Sugar Land, Texas, USA 77479
tel 55 11 2769 6784 tel 61 417 728440 662-453-6231 • www.staplcotn.com +1 832 944 6340 www.nobleagri.com
Variety.
Dependability.
Integrity. Omnicotton Inc.
555 Republic Drive Suite 550
Plano, Texas 75074
TOYO COTTON CO. TOYO COTTON (JAPAN) CO. United States
tel 972 398 0993
11611 Forest Central Dr. 8-2, Utsubo-Honmachi 1-Chome, Nishi-Ku
Dallas, TX 75243
Phone: 214-349-1376
Osaka, 550-0004, Japan
Phone: 06-6479-1412
806-763-8011 ww
www.omnicotton.com | info@omnicotton.com
Fax: 214-349-6490
daltr@toyocotton.com
Fax: 06-6479-1425 www.pcca.com Omnicotton Agri Comercial Ltda.
Rua Helena 285, Vila Olímpia, Conjunto 124
São Paulo, SP Cep: 04552-050
Omnicotton Australia Pty Ltd.
Suite 72, 283 Given Terrace
Paddington, QLD, 4064
sales@pcca.com Brasil
tel 55 11 2769 6784
Australia
tel 61 417 728440