Colombian Cotton Crops Slipping

WASHINGTON - May 2/06 - SNS -- Colombian cotton production is expected to fall 9% to 47,300 metric tons (MT) in 2005-06 and to decline a further 2% in the following year, according to the U.S. agricultural attache for the country.

The reduction is mainly due to reduced planted area in those regions that are considered marginal for cotton production, which have high production costs and low yields. Area planted grew to previous higher levels due mainly to government guarantees of a high minimum price to growers and debt forgiveness up to 40% on credit granted to local producers associations.

Although the government is committed to maintaining the minimum guaranteed price and subsidized credit to growers, producers have not been successful in reducing production costs and controlling pest problems. Government payments to maintain the minimum price to growers are estimated to total $33.3 million for 2006. The support price for the coastal-plains is $1,745 per MT of fiber and for the interior regions is $1,723 per MT of fiber.

Colombia is increasingly using biotech cotton since it was approved in 2002. The percentage of biotech seed planted is estimated at 35% of total area for 2005-06. Although biotech cotton has helped in controlling pest appearances, poor farm practices in marginal areas have resulted in increased appearances of pests that require a high number of pest control applications.

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