Analyzing the current returns and potential market by harvest method for west texas cotton

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Janani Thapa, Conrad Lyford, Eric Hequet, and Jeff Johnson Texas Tech University, Lubbock, Texas Project Funded by International Cotton Research Center at Texas Tech University

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Analyzing the current returns and potential market by harvest method for west texas cotton. Janani Thapa, Conrad Lyford, Eric Hequet, and Jeff Johnson Texas Tech University, Lubbock, Texas Project Funded by International Cotton Research Center at Texas Tech University. Cotton Market. - PowerPoint PPT Presentation

Transcript of Analyzing the current returns and potential market by harvest method for west texas cotton

Page 1: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Janani Thapa, Conrad Lyford, Eric Hequet, and Jeff Johnson

Texas Tech University, Lubbock, Texas

Project Funded by International Cotton Research Center at

Texas Tech University

Page 2: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

(000) bales

Global demand --

ring spinning

applications

Market prefers

highly uniform

fibers with less

neps

Figure 1: Average production and export of cotton

Source: www.nass.usda.gov

Page 3: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

• Texas is the largest producer of cotton in US.

• Traditional use of West Texas cotton is rotor spinning.

• Due to introduction of long staple varieties.

Figure 2: US cotton belt

Figure 3: Yield lbs/planted acre in Texas

Source: www.nass.usda.gov

Figure 4: Yield share by states

US cotton belt

Page 4: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

New varieties improved returns to West Texas

cotton farmers by $ 1 million a year

Dr. Carl Anderson

……….But are West Texas cotton farmers receiving

potential returns with using traditional

stripper harvesting methods

Page 5: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Using varieties with strong genetic potential

Irrigated production Harvesting costs evaluated Ginned with appropriate sequence to maintain fiber quality

Page 6: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Will shifting to picker harvest be financially rewarding for farmers:

Determine quality differences Compare profits with returns based on the CCC loan rate and AMS prices

Determine if improved markets served is possible

Page 7: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Yield and quality data of fibers

from actual field (irrigated, variety

Fiber Max) for three cotton marketing

years - 2009, 2010 and 2011 under

picker harvest-picker ginning and

stripper harvest-stripper ginning

sequence.

Page 8: Analyzing the current returns and potential market by harvest method  for west  texas  cotton
Page 9: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

 Year Picker StripperIncreased SFC

by stripper

200930.05*

** 32.41 2.36

201028.25*

** 36.93 8.68

2011 23.58 23.73 0.15

Neps per Gram

Short Fiber Content

by No. (%) Year Picker Stripper

Increased trash by stripper

2009288.58*

** 298.33 9.75

2010307.75*

** 334.75 27

2011306.00*

** 343.00 37

Trash Content (Cnt/g)

 Year Picker StripperIncreased Nep by

stripper

2009 327.58*** 466.33 139

2010 355.00*** 670.25 315

2011 284.92*** 382 97.1

Page 10: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

YearCost

($/acre)

2009 271

2010 163

2011 216

Average 217

Picker

Higher cost from stripper

Stripper Year

Cost ($/acre)

2009 336

2010 210

2011 248Average 265

YearCost

($/acre)

2009 65

2010 47

2011 32

Average 48

Page 11: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Picker

Higher seed cotton yield from stripper

Stripper

YearYield

(lbs/acre)

2009 4898

2010 2938

2011 3908

Average 3915

YearYield

(lbs/acre)

2009 6251

2010 3909

2011 4621

Average 4927

YearYield

(lbs/acre)

2009 1353

2010 971

2011 713

Average 1012

Page 12: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Picker

Higher lint yield from stripper

Stripper

YearYield

(lbs/acre)

2009 1734

2010 1040

2011 1383

Average 1386

YearYield

(lbs/acre)2009 18572010 11612011 1371Average 1463

YearYield

(lbs/acre)

2009 123

2010 121

2011 -11

Average 78

Page 13: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Picker

Higher revenue from stripper

Stripper

YearRevenue ($/acre)

2009 1718

2010 1041

2011 1396

Average 1385

YearRevenue ($/acre)

2009 1833

2010 1132

2011 1382

Average 1449

YearRevenue ($/acre)

2009 114

2010 91

2011 -14

Average 64

Page 14: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Picker

Little difference in overall profit

Stripper

YearProfit($/acre)

2009 1447

2010 878

2011 1179Average 1168

YearProfit($/acre)

2009 1497

2010 922

2011 1133Average 1184

YearProfit($/acre)

2009 49

2010 44

2011 -46

Average 16

Page 15: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

SJVSouth Texas

E/M 1

E/M 2

Traditional

Higher return Higher quality specification

Market Segments

SpinningQuality

Strength (GPT) Quality Rewards Color-Leaf-Length

San Joaquin Valley Ring 21-2-36 31 1180-1600 South Texas Ring 31-3-36 29 270-540

East/Memphis 1 Ring 31-3-36 28 170-450

South

East/Memphis 2 Rotor 41-3-34 28 0-80

South West Rotor 41-4-33 25 -(80-290)

Page 16: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Year Picker Stripper

2009 E/M2 Traditional

2010 E/M2 Traditional

2011 South Texas E/M1

Hence, picker harvested cotton fibers can at least meet the quality standards of market segment E/M 2 (average premium 40).

Page 17: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Little difference in returns from picker and

stripper harvesting methods in traditional

markets

Picker harvested West Texas cotton meets higher

segment market quality including short fiber

content, neps

Increased market access needs to be met with

sufficient volume to be noticed by the market

A focused effort to produce irrigated, picker

harvested cotton appears to be promising

Page 18: Analyzing the current returns and potential market by harvest method  for west  texas  cotton

Thank You

Happy New Year