Better Year for Western Cotton Growers

Western Cotton Growers See Market Improvement

 

By Patrick Cavanaugh, Farm News Director

 

Cotton growers throughout California and the West fared better this year compared to last year in terms of prices and exports, as reported at the Calcot, Ltd. 89th Annual Meeting last week in Tempe, Arizona. Jarral Neeper president and CEO of the Bakersfield-based Calcot, Ltd., the cotton marketing cooperative representing growers in California, Arizona, New Mexico, and Texas, announced, “Last year we produced about 13M bales. We should be a hair over 16M this year.”

California Cotton, Merced County, Sept 2016
California Cotton, Merced County

Neeper estimated, “We’re going to go from about 10.2 million bales in exports to 11.5 million based on a review of our historical shares of the marketplace and the world, the foreign production/consumption gap, our historical shares of filling that gap, and how much we should export.”

“One year ago at this time, cotton prices were at a very low $0.61 per pound,” said Neeper. “The market eventually fell. Prices rallied a little bit, and then fell down to $0.55. Then, the last month of the crop year, we had calcot-logothis unforeseen $0.10 rally—almost $0.12 rally.

In cotton marketing where there are highs and lows, Neeper acknowledged, you can’t always sell high; you have to sell when you can. “As a cooperative, in order to make progress payments to your membership, you do have to sell cotton and turn it into cash.”

“The cotton futures look good,” Neeper said, “even better for the coming year. We’re sitting at roughly $0.70 a pound, about ten cents higher than a year ago. And, generally, California cotton growers tend to get a $0.05 to $0.10 premium per pound because of our growing additions and high quality lint.”

Neeper believes the future of Calcot, Ltd. is “terrific.” He added, “89 years and still going strong; we’re looking for another 89 years.”

 

Calcot Could Market 70 Millionth Bale this Year

Calcot Ltd. Chairman Talks California Cotton at 89th Annual Meeting

By Patrick Cavanaugh, Farm News Director

Calcot Ltd., a democratically-run cotton marketing cooperative owned by 1,200 select cotton growers in California, Arizona, New Mexico and Texas, held its 89th Annual Meeting in Tempe, Arizona, this week. 

Gregory Wuertz, chairman of Calcot and an Arizona cotton grower, said, “The cooperative started in 1927, and it is just amazing to me that we will reach 70 million bales sometime this year.”

“That’s a lot of cotton if you think about it,” Wuertz said. “And it has a great effect on all the growers. A lot of money has been run through the organization, and we are still doing it.”

Wuertz said Calcot directors are in the field across the western cotton belt, interacting with the industry.

“We have Calcot personnel in each cotton region who are also out in the fields talking to people and bringing up questions. They just don’t stay in their office. We try to get great members, and we work really closely with gin managers and their staff. We want to be on a first-name basis,” he said.

Wuertz noted, “You have to love the lifestyle of cotton production. You get attached to the crop. You plant it in March and harvest it in November. It’s a long-term thing.”

Yet, Wuertz acknowledged, “There are ups and downs. There always are. There is always a new catastrophe because you deal with the weather and the water issues. I think you just build up a little bit of a strength and have tougher skin than maybe some growers have with other commodities.”

Many Calcot growers outside of California are in awe of California producers. 

“California has a lot more regulations,” Wuertz said. “They’re blessed with a really nice climate—just a perfect area. Our climate is a little harsher, but California people work with air quality, labor laws, and their water issues. They have to have a real sharp pencil to make all that work.”

However, Wertz says, California growers always enjoy a better per-pound price for their cotton.

“I think over the years they have developed markets, and because of their climate, they do grow a real [high] quality crop that just demands a higher price. Everybody says there’s no difference, but there is some kind of difference that is just a little better,” he said.

Wuertz explained that the Calcot cooperative is good for growers when it comes to the prices they receive.

“It is the classic cooperative idea,” he said. “It is too risky to try and peak these cotton markets. It is risky to just hold all your cotton and try to peak it at one time.”

“You have to be conservative,” he continued. “Like cotton growers are — very conservative. So you sell some and hold some and seek financing from banks for the short term. We have good tight covenants with the bank, and that’s part of our risk-management policy. We don’t want to speculate, so that is why we sell throughout the year, and we try and watch all those things.”

“We have a very strong relationship with mills and we can sell directly to them, which I think demands more of a premium for Calcot growers,” Wuertz said. “And while most cotton-spinning mills are offshore, we still have a good chunk of cotton going to some very good domestic mills, where they turn out top of the line sheets and higher-count shirts.”

Fresno State Launches New Agricultural Leadership Program

Fresno State’s Avery Culbertson Launches Solid Agricultural Leadership Program

 

By Lauren Dutra, Associate Editor

 

Dr. Avery Culbertson, who is passionate about agricultural leadership joined California State University, Fresno (Fresno State) in August, in a newly created position to develop an Ag leadership curriculum for the Jordan College of Agricultural Sciences and Technology.

Dr. Culbertson’s interest in Ag leadership was initially sparked by “being a product of National FFA Organization* (FFA). You have a lot of role models and influences around you. You start getting an idea of what Ag leadership is,” said Culbertson.

“After I got my degree in agricultural education and was looking for a job, I met with a colleague who said, ‘There are adult leadership programs around the country, and I want you to start one at New Mexico State University.’”

Having been trained by the California Agricultural Leadership Program, Culbertson was confident that she could successfully launch a program. “They really opened their arms to me,” she commented, “and provided resources. As that progressed, I started defining what leadership was.”

Culbertson asserted, “An agricultural leadership program is not only [about] understanding our industry, but understanding our customer. That became very important to me in and outside of the job. The only way that agriculture can lead in society is by understanding our stakeholders.”

Culbertson thinks it is critical not only to know how to lead—having the skill set to be a great speaker or to be knowledgeable in different fields,” she explained, “we also need to know who we are leading. As I’ve been discussing with my classes right now, leadership is a matter of taking a group of people and accomplishing a collective goal,” she said.


*National FFA Organization (FFA), formerly known as Future Farmers of America, helps students by developing their potential for premier leadership, personal growth and career success through agricultural education.

Pistachios Trump Diabetes

Pistachios Trump Diabetes

By Brian German, Associate Editor

Just eating the right foods can benefit people diagnosed with pre-diabetes or with type 2 diabetes.  Recent research* suggests including pistachios as part of a balanced diet is a sound strategy to help lower the risk of developing type 2 diabetes. And the news could increase pistachio imports into China, where the disease is rampant.

Judy Hirigoyen, vice president of global marketing for the Fresno-based American Pistachio Growers organization that represents more than 800 growers in California, Arizona and New Mexico, noted pistachios have a good future in the global diabetes epidemic, especially in China. “Believe it or not,” she explained, “one-third of the entire world’s population of diabetics lives in China. Diabetes is associated, not with overweight or obesity, but with their diet. In particular, a lot of fingers are pointed at a lot of white rice,” she said.

“The good news for the pistachio industry,” said Hirigoyen, “is the Chinese population really loves American products, including pistachios. They’re looking for healthy foods to eat, and pistachios are very widely recommended, especially as part of a diet for someone who either has diabetes or who wants to prevent pre-diabetes from developing into diabetes.”

American Pistachio Growers Infographic - Pistachios and Diabetes
American Pistachio Growers Infographic – Pistachios and Diabetes

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*A study, published in Diabetes Care, suggests that pistachios may have glucose- and insulin-lowering effects and promote a healthier metabolic profile in people with pre-diabetes. (Hernandez-Alonso, P., et al. Nutrition attributes and health effects of pistachio nuts. Br J Nutr. 2015 Apr;113 Suppl 2:S79-93.)

Another study, published in Nutrition, Metabolism and Cardiovascular Diseases, suggests that daily consumption of pistachios may shift the lipoprotein size and particle profile to a less atherogenic pattern in people with pre-diabetes. (Hernandez-Alonso, P., et al. Effect of pistachio consumption on plasma lipoprotein subclasses in pre-diabetic subjects. Nutr Metab Cardiovasc Dis. 2015 Apr;25(4):396-402.)