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Fifth Sourcing USA Summit
Since 1997, Cotton Council International and Cotton Incorporated jointly present the Sourcing USA Summits. The biannual meeting gathers global leaders along the cotton supply chain for an open exchange of ideas and the opportunity to share best practices, learn of emerging trends and new technologies to improve their individual business segments and the industry as a whole.
From November 13 � 16, 2008, over 400 representatives of the cotton industry for a three-day meeting in Austin, Texas that may serve to redefine global direction and foster enhanced collaboration along the cotton supply chain. Anchoring the conference was an assessment by the Center for Strategic and International Studies, which marked a unique application of that organization�s Seven Revolutions model to the entire cotton industry. Titled �Cotton�s Revolutions,� the study identified three key focal areas for global cotton: resources, technology and governance.
Cotton�s Revolutions: Resources
KEYNOTE
From the Seven Revolutions To Cotton's Revolutions - An Exercise In Strategic Thinking
Erik R. Peterson
Senior Vice President, Center for Strategic and International Studies; Director, Global Strategy Institute; William A. Schreyer Chair In Global Analysis
Erik R. Peterson presented a compelling overview of how growing world populations and longer life expectancies will impact natural resource availability and infrastructure challenges over the next fifty years; and how those issues will affect cotton cultivation, manufacturing and distribution.
Presentation Not Available
ENERGY
Outlook for World Energy: Is There a Sustainable Path?
David Pumphrey
Deputy Director and Senior Fellow, Center for Strategic and International Studies
Mr. Pumphrey�s examination of world energy needs/availability addressed two key energy challenges facing the world: the adequacy and security of oil supplies; and the transformation of energy systems to meet climate change concerns. A third factor, the short and long-term effects of the global economic instability, was cited as potential impediments to securing the future of energy.
WATER
Outlook for Global Water: Can We Stay Above the Surface?
Mr. Peterson returned to share projections of water scarcity over the next 40 years. Mr. Peterson pointed out that, given population projections, the global demand for water will increase by 50% over successive generations. Beyond the vital need for human consumption of water, it is also integral to agriculture, other food production, manufacturing, making its potential scarcity of high concern across-the-board.
Luncheon Address
Cotton Sustainability: Developments for the 21st Century
J. Berrye Worsham
President and CEO, Cotton Incorporated
Berrye Worsham�s remarks highlighted how technological advances continue to help producers meet environmental challenges, while being more environmentally-conscious; and how science continues to move cotton beyond solely a fiber source. �Cotton and The Second Green Revolution,� a short video on the cultivation of cottonseed as a high-protein food source for humans was shown, setting the stage for the afternoon�s program of technological revolutions in the cotton industry.
Cotton�s Revolutions: Technology
NANOTECHNOLOGY
Nanotechnology and Its Effect on What We Do and What We Wear
Brian Francois
Business Director, Pulcra Chemicals LLC
Mr. Francois�s presentation explained how the expansive surface area of nano particles make it ideal for myriad applications, including textiles. He cited the natural absorbency, permeability and reactivity of cotton as being among the advantages of cotton fiber for nano applications.
BIOTECHNOLOGY
New Developments in Biotechnology for U.S. Cotton
Dr. Jane K. Dever
Professor - Cotton Breeding, Texas AgriLife Research, Texas A&M
Dr. Devers chronicled the benefits of biotechnology on agriculture in general, and cotton in particular. She cited the existence of short-term (7 � 10 years) opportunities to increase yield even in trying climatic environments. Long-term (12 � 15 years) bio-tech benefits included textile-specific strains with characteristics such as wrinkle resistance.
Cotton�s Revolutions: Governance
TRADE
The Ease of Doing Business: Insights from the World Bank "Doing Business 2009" Report
Dr. Allen Dennis
Economist, World Bank
Dr. Allen shared excerpts from the World Bank�s �Doing Business 2009� report, which provides objective measures of business regulations and their enforcement across 178 countries. Along with identifying those countries that have initiated significant trade reforms, Dr. Allen pointed out that textile exporting countries with better business regulatory environments tend to export in greater volumes.
SOURCING
The Cotton Revolution: Governance Factors Influencing Global Sourcing Decisions
Michael Kobori
Vice-President, Supply Chain Social and Environmental Sustainability, Levi Strauss & Co.
Mr. Kobori addressed the key trends likely to affect cotton sourcing in the near future: social and environmental sustainability, traceability of fiber origin/growing practices; a consensus among stakeholders for standards and reporting; and transparency of practices along the entire supply chain �from the farm to the retail counter.
KEYNOTE
Obama, Trade and the Road Ahead
Bruce Stokes
National Journal
Mr. Stokes explained the pledges and challenges facing the Obama Administration. Among the pledges by Barack Obama are a renegotiation of NAFTA, proposed free trade agreements with Korea and Colombia and stronger enforcement of trade policies. Trade challenges to the incumbent administration were identified as the global financial crisis, slowing exports, a stalled DOHA Round and an increasingly negative U.S. sentiment towards global trade.
The Transport Challenges Facing Globalization
Anthony Pralle
Senior Partner and Managing Director, The Boston Consulting Group
Mr. Pralle�s presentation offered five key points with regard to transportation of products amid increasing globalization: Asian competitiveness is here to stay; container rates are set to decline in 2009-2010; infrastructure congestion, beyond container rates, will increasingly influence supply chain choices; intelligent economics, beyond accounting and profit numbers, are essential; and the emergence of sustainability as a medium-term factor.
Factors Affecting World Fiber Markets
Dr. Gary M. Adams
Vice-President of Economic and Policy Analysis, National Cotton Council of America
Dr. Adams points out that the global economic instability has put cotton in a two-front battle of supply and demand; the farm and the factory. On the supply (agricultural) end of the business, cotton is struggling to compete with grain prices; on the demand (textile fiber) end, the sharp decline in polyester prices per pound is eroding the attractiveness of cotton as a textile source. This tug of war plays out with the supply side trying to move prices higher and the demand side trying to pull them lower. Dr. Adams suggests that that while supply may win the short-term battle, demand will likely win the war.
A New Green Revolution
A Global Solution for the Future
Envision a future where environmental sustainability thrives along with the businesses that depend on cotton as a source of income.
Cotton and Natural Resources
