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Impacts of Quality Characteristics on U.S. Cotton Prices and Value

Authors
Disciplines
  • Agricultural Science

Abstract

Microsoft Word - AAEA papere2.doc Impacts of Quality Characteristics on U.S. Cotton Prices and Value Ya Wu Research Assistant Department of Agricultural and Applied Economics The University of Georgia e-mail: [email protected] Lewell F. Gunter Professor Department of Agricultural and Applied Economics The University of Georgia e-mail: [email protected] W. Donald Shurley Professor and Economist Department of Agricultural and Applied Economics The University of Georgia e-mail: [email protected] Selected Paper prepared for presentation at the American Agricultural Economics Association Annual Meeting, Portland, OR, July 29-August 1, 2007 Copyright 2007 by [Wu, Gunter, and Shurley]. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. 1 Cotton is one of the major agricultural commodities grown in the United States with an annual production value of over 5 billion dollars. US cotton production accounts for about 20% of annual world production. The two major uses of U.S. cotton are domestic mill use and exports. Domestic mill use consumed more than 70% of the U.S. cotton supply until late 1990’s. As textile production moved out of the US, however, domestic cotton consumption decreased sharply. The steady fall of U.S. domestic cotton consumption since the late 1990’s, has been accompanied by a steady increase in U.S. cotton exports, as foreign textile production has increased. As approximately 70 percent of U.S. cotton production is now exported, U.S. cotton confronts more competition from other cotton exporters and US production must meet international quality standards for cotton. The Agricultural Marketing Service (AMS) of USDA provides standardization, grading and market news services for cotton and for five oth

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