Brazilian farmers aim to meet 20% of Egypt’s cotton import demand within the next 2 years and have sought to gain some market share in the first half of the year.
Earlier this month, Egypt and Brazil signed a plant inspection and quarantine agreement to establish rules for Brazil’s supply of cotton to Egypt. Brazilian cotton will seek to enter the Egyptian market, and the Brazilian Cotton Growers Association (ABRAPA) has set these goals.
ABRAPA Chairman Alexandre Schenkel stated that as Brazil opens the door to exporting cotton to Egypt, the industry will organize some trade promotion activities in Egypt in the first half of this year.
He stated that other countries have already carried out this work together with Brazilian embassies and agricultural officials, and Egypt will also carry out the same work.
ABRAPA hopes to showcase the quality, production traceability, and supply reliability of Brazilian cotton.
Egypt is a major cotton producing country, but the country mainly grows long staple cotton and ultra long staple cotton, which is a high-quality product. Brazilian farmers grow medium fiber cotton.
Egypt imports approximately 120000 tons of cotton annually, so we hope that Brazil’s cotton exports to Egypt can reach approximately 25000 tons per year
He added that this is the experience of Brazilian cotton entering new markets: achieving a 20% market share, with some of the market share ultimately reaching as high as 50%.
He stated that Egyptian textile companies are expected to use a blend of Brazilian medium fiber cotton and domestic long staple cotton, and he believes that this portion of imported cotton demand may account for 20% of Egypt’s total cotton imports.
It will depend on us; it will depend on whether they like our product. We can serve them well
He stated that the cotton harvest periods in the northern hemisphere where Egypt and the United States are located are different from those in the southern hemisphere where Brazil is located. We can enter the Egyptian market with cotton in the second half of the year
Brazil is currently the second largest cotton exporter in the world after the United States and the fourth largest cotton producer in the world.
However, unlike other major cotton producing countries, Brazil’s cotton output not only meets domestic demand, but also has a large portion that can be exported to overseas markets.
As of December 2022, the country exported 175700 tons of cotton. From August to December 2022, the country exported 952100 tons of cotton, a year-on-year increase of 14.6%.
The Brazilian Ministry of Agriculture, Livestock and Supply has announced the opening of the Egyptian market, which is also a request from Brazilian farmers.
He said that Brazil has been promoting cotton in the global market for 20 years, and he believes that the information and reliability of Brazilian production have also spread to Egypt as a result.
He also stated that Brazil will meet Egypt’s phytosanitary requirements. Just as we demand some control over plant quarantine entering Brazil, we must also respect the plant quarantine control requirements of other countries
He added that the quality of Brazilian cotton is as high as that of competitors such as the United States, and the country’s production areas are less susceptible to water and climate crises than the United States. Even if cotton output decreases, Brazil can still export cotton.
Brazil produces approximately 2.6 million tons of cotton annually, while domestic demand is only about 700000 tons.
Post time: Apr-17-2023