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

Related Stories
The government reopens after 43 days. USDA resumes key reports, weighs farm aid, and watches China’s next move on U.S. soybean purchases.
USMEF President and CEO Dan Halstrom shares how recent trade talks are influencing U.S. red meat global sales and the importance of key trade agreements like the USMCA.
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.
Enforceable origin labels could create clearer premiums for U.S. cattle and address concerns some producers have had with competition from foreign imported beef.
Friday’s release will be the first WASDE report in about two months, and early estimates indicate a corn surplus is still on the way.
A Reuters report shows China has a soybean “glut,” finding stockpiles at Chinese ports are at record levels, with crushers there holding the most supplies since 2017.
The National Milk Producers Federation (NMPF) says recent wins in markets like Malaysia and Cambodia help farmers focus on production rather than trade barriers.
Lucia Ruano, USMEF’s Central America representative, discusses what is driving demand for U.S. beef and pork in the region.
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.

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.

LATEST STORIES BY THIS AUTHOR:

Tyson’s Nebraska plant closure and falling Cattle on Feed numbers send cattle markets tumbling. Analysts warn of tighter supplies, weak margins, and rising global competition.
A regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture, prepared by RFD-TV Markets Specialist Tony St. James, for the week of Monday, November 24, 2025.
Texas Ag Commissioner Sid Miller warns horse owners after EHV-1 cases linked to the Waco WPRA Finals. Horses linked to recent Waco events should be isolated and closely monitored, as early action is critical to stopping the spread of EHV-1.
One trader said the products entering the U.S. are primarily grind and trim, noting that the volume and type of beef, on its own, should not cause a major disruption. However, he says fund traders are reacting heavily to headlines rather than market realities.
Farmers with unpaid Hansen-Mueller grain should verify delivery records immediately and file indemnity claims quickly, as coverage rules differ sharply by state.
Olivia Bury, AgriSafe Network Behavioral Health Coordinator, shares about AgriSafe Network’s resources created to support farmers and rural Americans.
Agriculture Shows
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.
The goal of “Where the Food Comes From” is as simple as its name implies — host Chip Carter takes you along on the journey of where our food comes from — and we don’t just mean to the supermarket (though that’s part of the big picture!). But beyond where it comes from, how it gets there, and all the links in the chain that make that happen.
Join markets specialist Scott Shellady, better known as the Cow Guy, as he covers the market-close, breaking down headlines that drive the commodities and equities markets with commentary from respected industry heavyweights.