WTO Cotton Talks Center on Value-Chain Investments as U.S. Regional Chain Faces Financial and Capacity Crisis

The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.

cotton bud with the sunset_Photo by Kelli via AdobeStock_386673555.jpg

A cotton bud framed by a sunset.

NASHVILLE, Tenn. (RFD-TV) — Cotton-producing nations are heading into next year’s Ministerial Conference with a sharper focus on market transparency, domestic support reforms, and value-chain investment. The latest briefing from the International Cotton Advisory Committee (ICAC) shows global cotton production holding near 25.4 million tonnes — roughly 116.7 million 480-lb bales — with consumption slipping slightly to 114.7 million bales. ICAC also highlighted the rapid expansion of specialty cotton, which now accounts for one-third of global lint as demand grows for long-staple and certified sustainability programs.

At the same time, African Cotton-4 countries — Benin, Burkina Faso, Chad, and Mali — renewed their long-running push for reform of cotton-specific domestic support, an issue they first raised in 2003. These producers argue that unresolved subsidies in major exporting countries continue to distort world prices and limit income growth for African farmers.

WTO members also reviewed progress under the Partenariat pour le Coton, a regional initiative to build a complete cotton-textile-garment system that keeps more value in African economies. UNIDO reported advances in investment planning, national consultations, and early work to expand local ginning, spinning, and finishing capacity.

Looking ahead, negotiators said a meaningful cotton outcome at MC14 remains possible, including a stand-alone deal if broader agriculture talks stall.

Farm-Level Takeaway: The Cotton-4 are pushing hard for fairer global cotton rules and new value-chain investment, while ICAC projects steady world output and rising demand for premium fibers.
Tony St. James, RFD-TV Markets Specialist

Meanwhile, here on the ground, North Carolina’s local “dirt-to-shirt” cotton system is under severe strain as growers, ginners, and textile operators face a third straight year of financial losses and shrinking regional capacity. Farmers report cotton prices stuck near 65 cents per pound — far below the roughly 95-cent cost of production — leaving the state’s fifth-largest crop deep in the red again.

The Cotton of the Carolinas supply chain, built to keep every step from field to finished shirt within the region, is now losing key links. TS Designs reports that its longtime spinner moved most operations to Central America, and the remaining spinning facility in Mountain City, Tennessee, was knocked offline by Hurricane Helene. A major fabric finisher also closed last year, tightening an already thin network.

For farms like Burleson & Sons and gins such as Rolling Hills, the economic pressure raises doubts about planting decisions and long-term viability. With mills closing or moving offshore, locally grown cotton has fewer regional buyers.

Across the broader Southeast, growers face similar cost pressures, global textile imports continue to expand, and synthetic fibers dominate low-cost apparel markets — eroding demand for regional cotton programs.

Looking ahead, Eric Henry, President with TS Designs, warns that without renewed purchasing commitments and more substantial support for domestic manufacturing, the entire Carolina field-to-fabric model may collapse.

Farm-Level Takeaway: Local cotton growers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
Tony St. James, RFD-TV Markets Specialist

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Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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