Recent Developments in

the Global Cotton Market

Cotton By-Products
Kai Hughes
Executive Director
International Cotton Advisory Committee

International Cotton
Advisory Committee
Africa’s cotton yields have been stagnant for over four decades
Kg/Ha
1'000 Average Lint Yield
2015/16-2017/18
800

600
Region Average
400

200

-
Mali
Uganda

Chad
Zambia

Angola

Guinea
Togo
Ethiopia
South Africa

Cameroon

Cote D'Ivoire

Senegal

Ghana

Burundi
Benin

Burkina Faso

Zimbabwe
Mozambique
Niger

www.icac.org
If cotton yields are increased is all Sub-Saharan Africa then lint
production would increase by an additional 2 million tonnes

351 kg/ha 1.64 MT

4.67 M Ha
788 kg/ha 3.68 M T

www.icac.org
 World Cotton Seed Production
Million Tonnes
50
45
Global cottonseed
40
production has ranged
35
between 36 and 48 million
30
tonnes in the last decade
25
20
15
69/70
72/73
75/76
78/79
81/82
84/85
87/88
90/91
93/94
96/97
99/00
02/03
05/06
08/09
11/12
14/15
17/18
www.icac.org
Source: USDA Oilseed report
 Cotton Seed by-products

Processing Direct Animal Feed Planting Purposes

Linters Hulls Oil Cake &

4%-8% 27% 16%-18% Meal
45%

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 Value chain of Seed-cotton
350 Kg
LINT

1000 Kg 640 USD

Kg USD
SEED COTTON GINNING Waste
20 Kg OIL 107 122
786 USD 40 USD
SEED-CAKE 284 81
630 Kg PROCESSING
HULLS 170 43
FUZZY SEED 20 USD
LINTERS 50 16
226 USD

www.icac.org
*Costs are approximate global average estimates 2019
 Value chain of Seed-cotton
35%
LINT
1.83 USD/kg
Direct
SEED COTTON GINNING
Waste Animal Feed
2.0%
0.79 US$/kg 40 US$/T % US$/kg

63% OIL 16%-18% 1.14

FUZZY SEED PROCESSING
SEED-CAKE 45% 0.29
HULLS 27% 0.25
0.36 US$/kg 30 US$/T
LINTERS 6%-8% 0.32
www.icac.org
*Costs are approximate global average estimates 2019
 Cotton Stalk value addition

Processing firewood Soil incorporation

compost
Briquettes Pellets Particle
boards Mushroom
cultivation

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 Particle Boards Pellets Briquettes
Small scale Industry
600 kg 950 kg 950 kg
• 142 USD • 101 USD • 54 USD
• Net profit: 22 USD/T • Net profit: 14 USD/T • Net profit: 6 USD/T

COTTON STALKS
1000 kg
40 USD

Compost
Mushrooms Farm Value addition
800 kg
• 48 USD • Stalks are
• Net profit: 3 USD/T only substrate

www.icac.org
 Global Edible Oil Production
2018/19
Million tonnes US$/Tonne
80 4'000
3'515
70 Production Price 3'500
60 3'000
50 2'500
40 2'000
1'404
30 1'500
747 836 758
20 571
705 726 735 1'000
10 500
73.6 56.5 28.0 19.7 8.6 5.7 5.2 3.7 3.1
0 0

www.icac.org
USDA: Oilseeds report
 Cotton Seed Oil Production - Leading Countries
3-year average
1.India 1'241
2.China 1'196
3.Pakistan 453
4.Brazil 352
5.USA 237
6.Uzbekistan 228
7.Turkey 192
8.Australia 116
9.Turkmenistan 77
10.Mexico 69
11.Mali 52
14.Benin 37 Cottonseed Oil

15.Burkina Faso 34
…
26.Chad 12

- 500 1'000 1'500

000 tonnes
www.icac.org
Source: Oilseed report USDA
*: 3-year average 2015/16- 2017/2018
 Cotton Seed Oil Production in Africa
3-year average
Thousand tonnes
60

50

40

30 Cottonseed Oil

20

10
52 37 34 27 16 16 15 13 12 12 9 8 8 5 4
0

www.icac.org
Source: Oilseed report USDA
*: 3-year average 2015/16- 2017/2018
 % Seed Crushed for Oil and Meal in Africa
140 133

120
99
100 93
83 85
79
80 70 70 73
76

62 63
60 55 55 56

40

20

www.icac.org
Source: ICAC, 2019
*South Africa imports cotton seed for oil extraction
 Value (Million USD) of Oil, Meal and unused cotton seed in Africa
140
Oil
120
Seed Meal Cake

100 Unused Seed

80

60

40

20

0
 Value addition of uncrushed Cotton Seed
in Africa
Million US$
50
40
Seed value
30 if value added

20
10
0

www.icac.org
Source: ICAC, 2019
 Edible Oil Imports in Africa
3-year average
Thousand tonnes Kg/ha
700 3'000

600 Edible Oil Imports

2'500
Cottonseed Oil Production
500 Seed Cotton Yield
2'000
400
1'500
300
1'000
200

100 500

0 -

www.icac.org
Source: UNCOMTRADE.
 Cottonseed Oil Trade - 2018
Top Five Exporting Countries Top Five Importing Countries

Turkmenistan
Other
4%
12% Mexico
South Africa Others 22%
6% 35%

Kazakhstan
8% Australia
USA
Malaysia 59% 15%
11% Tajikistan
8% Canada Malaysia
8% 12%

Thousand Million Thousand Million

US$/T US$/T
Product Tonnes US$ Product Tonnes US$
USA 52.04 46.72 898 Mexico 22.63 15.71 694
Malaysia 9.42 10.62 1,128 Australia 15.97 15.02 940
Kazakhstan 6.73 6.11 907 Malaysia 12.42 10.58 852
South Africa 5.61 6.46 1,151 Canada 8.75 7.40 846
Turkmenistan 3.79 3.23 853 Tajikistan 8.57 6.48 756
Others 10.33 11.15 1,080 Others 36.33 40.87 1,125
World 87.92 84.28 World 104.67 96.05

www.icac.org
HS Code: 151229. Cottonseed oil and its fractions, whether or not refined, but not chemically modified
 Cottonseed oil is healthy
-American Heart Association

Zero Cholesterol
High Vitamin E
21% Monounsaturated fatty acids
48% Polyunsaturated fatty acids
25% Saturated fatty acids

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 Fatty acids, cholesterol and vitamin E in oils
Saturated Monounsaturated Polyunsaturated Cholesterol Vitamin E
g/100g g/100g g/100g mg/100g mg/100g
Animal fats
Duck fat 33.2 49.3 12.9 100 2.7
Lard 40.8 43.8 9.6 93 0.6
Tallow 49.8 41.8 4 109 2.7
Butter 54 19.8 2.6 230 2
Vegetable fats
Coconut oil 85.2 6.6 1.7 0 0.66
Cocoa butter 60 32.9 3 0 1.8
Palm kernel oil 81.5 11.4 1.6 0 3.8
Palm oil 45.3 41.6 8.3 0 33.12
Cottonseed oil 25.5 21.3 48.1 0 42.77
Wheat germ oil 18.8 15.9 60.7 0 136.65
Soybean oil 14.5 23.2 56.5 0 16.29
Olive oil 14 69.7 11.2 0 5.1
Corn oil 12.7 24.7 57.8 0 17.24
Sunflower oil 11.9 20.2 63 0 49
Safflower oil 10.2 12.6 72.1 0 40.68
Hemp oil 10 15 75 0 12.34
Canola oil 5.3 64.3 24.8 0 22.21
www.icac.org
https://en.wikipedia.org/wiki/Fatty_acid
 Global Seed-meal Production
2018/19
Million tonnes US$/Tonne
250 400
350
200
Production
300
Price 250
150
200
100 150
100
50
50
236.3 39.4 21.1 15.7 10.1 6.9 2.0
0 0

www.icac.org
USDA: Oilseeds report
 Cottonseed Meal Production – Leading Countries
2018/19

India 4210
China 4116
Brazil 1700
Pakistan 1420
United States 776
Turkey 658
Uzbekistan 563
Australia 328
Mexico 263
Mali 172
Benin 159
Turkmenistan 144
Myanmar 134
EU-27 130
Burkina Faso 116

0 2000 4000 6000

000 tonnes
www.icac.org
 Global Meal – Exports
2018
Million tonnes US$/ tonne
80 500
Million Billion US$/ 68.7 Quantity Value
Product Tonnes US$ tonne 400
Soybean 68.69 26.96 392 78.7% 60
Sunflowerseed 9.09 1.92 211 10.4%
300
Palm Kernel 7.82 0.99 126 9.0%
40
Coconut 0.76 0.13 176 0.9%
Cottonseed 0.54 0.12 217 0.6% 200
Linseed 0.20 0.07 340 0.2%
20
Peanut 0.12 0.04 349 0.1% 100
9.1 7.8
Total 87.23 30.23
0.8 0.5 0.2 0.1
0 0

www.icac.org
Source: UNCOMTRADE.
Others: rapeseed, corn, among others.
 Cottonseed Meal Trade - 2018
Top Five Exporting Countries Top Five Importing Countries

Mexico
USA 15%
Others 20%
37%

Others South Africa

48% 12%

Benin
14% Senegal
10%
Turkey
Burkina Syria Kenya
8%
Tanzania Faso 7% 8%
9% 12%

Thousand Million Thousand Million

US$/T US$/T
Product Tonnes US$ Product Tonnes US$
USA 107.57 28.78 268 Mexico 79.31 20.28 256
Benin 76.16 16.36 215 South Africa 61.15 13.52 221
Burkina Faso 63.80 11.55 181 Senegal 50.22 7.74 154
Tanzania 51.34 9.98 194 Kenya 40.49 7.47 185
Turkey 44.68 8.80 197 Syria 38.24 7.53 197
Others 198.83 42.49 214 Others 245.89 57.36 233
World 542.37 117.95 World 515.29 113.90
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HS Code: 230610. Oilcake and other solid residues of cotton seeds, resulting from the extraction of vegetable fats or oils
 Cotton Linters - Exports
US$ millions ‘000
400 450
350 400

300 350
Cotton Linters exports have
300
250
250
decreased 58% over the
200
200 past decade, from 282,000
150
150 tonnes in 2009 to 118,000
100 100 tonnes in 2018
50 US$ Qty tonnes 50
0 0
2001

2003

2005

2007

2009

2011

2013

2015

2017

www.icac.org
HS Code: 140420. Cotton Linters
 Cotton Linters Trade
2018
Top Five Exporting Countries Top Five Importing Countries

Serbia
1%
Other USA Other
20% 2% 8%
India
27%
Spain
South Africa 14%
8% China
47%
USA
12% Turkey
18% Japan
Brazil
27%
15%

www.icac.org
HS Code: 140420. Cotton Linters
 West Africa can generate US$ 123 million from cotton stalks
and US$ 78 million by removing gossypol from seed-meal
Seed-meal Short fibres Cotton Stalks
Country Seed Removing Absorbent Briquettes Pellets Power Power
production Gossypol cotton generation
'000 t US$ Million '000 MW
Burkina Faso 549 18 16 13 29 0.57 38
Mali 549 18 16 13 29 0.57 38
Benin 500.4 17 15 12 26 0.52 35
Cote D’Ivoire 333 11 10 8 17 0.35 23
Cameroon 196 6 6 5 10 0.20 14
Togo 90 3 3 2 5 0.09 6
Chad 47 2 1 1 2 0.05 3
Nigeria 92 3 3 2 5 0.10 6
TOTAL 2356 78 71 57 123 2.45 164
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 East Africa can generate US$ 42 million from cotton stalks
and US$ 26 million by removing gossypol from seed-meal
Seed-meal Short fibres Cotton Stalks
Country Seed Removing Absorbent Briquettes Pellets Power Power
production Gossypol cotton generation
'000 t US$ Million '000 MW
Sudan 196 6 6 5 10 0.20 14
Zambia 79 3 2 2 4 0.08 6
Zimbabwe 90 3 3 2 5 0.09 6
Tanzania 167 6 5 4 9 0.17 12
Mozambique 43 1 1 1 2 0.05 3
South Africa 70 2 2 2 4 0.07 5
Uganda 49 2 1 1 3 0.05 3
Ethiopia 68 2 2 2 4 0.07 5
TOTAL 799 26 24 19 42 0.83 56
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Thank You

Any Questions?
International Cotton
Advisory Committee