Mexico would achieve cotton exports of 0.4 million bales

Mexico would achieve cotton exports of 0.4 million bales in the 2021/2022 cycle, according to projections from the Department of Agriculture (USDA).

Export levels largely depend on the quality of cotton, as exports from previous years increased after the rejection of the national textile industry.

Earlier, 2020/2021 marketing year exports were revised up 80% to 0.36 million bales, due to unexpected levels of poor quality cotton exports to Turkey, Pakistan and China.

Cotton exports

The USDA forecasts that Mexico’s cotton production will increase 22% for the 2021/22 marketing year, due to rising world prices and ongoing drought conditions favoring cotton production over other more water-dependent crops.

However, final production and fiber quality are likely to fluctuate as producers continue to face a number of challenges, including availability of seeds, water, and inputs.

Poor quality supplies are often destined for export to Asia, as the domestic industry prefers high-quality domestic supplies and imports from the United States.

In addition, the USDA forecasts an increase in imports during the 2021/2022 season based on the uncertainty of the quality of the domestic fiber.

Meanwhile, consumption is forecast to decline from 2020/2021 campaign levels, due to low consumer purchasing power after a significant contraction in the Mexican economy in 2020 and a forecast slow recovery.

Glyphosate permits

Semarnat has not issued import permits for the herbicide glyphosate since November 2019, and the government published a decree announcing plans to phase out the use of glyphosate over the next three years, with a total ban in January 2024.

He mentioned that if they do not have access to this herbicide, the cost of production will increase, since they will need to use other herbicides that have higher toxicity levels.

To date, according to the USDA, existing glyphosate supplies have been sufficient for current plantations.