subject: Cotton price hike, why not try trade fairly [print this page] The recent price hike in cotton is expected to significantly raise the end price of cotton clothing in the UK over the coming months. This has caused a stir amongst many retailers in the months running up to Christmas, and may have a significant effect on seasonal budgets.
Cotton has long been an integral part of British history. The cotton industry around 1750- 1830 accounted for a significant amount of Britain's national income mainly through the manufacture of cotton cloth, with Manchester, Nottingham and the Clyde Valley in Scotland accounting for the majority of the nations cotton cloth output to the world. This declined over the years with the industry never really recovering from the cotton famine during the American Civil War. This famine slowed down the industry in Britain and eventually other nations moved further towards the forefront of production.
Modern day suppliers of Cotton include China, USA, Pakistan and India. The recent floods in Pakistan and China have caused major damage to the cotton fields, with over 4 million acres of cotton fields being lost. The demand for cotton has spiked by an astonishingly high percentage causing fashion retailers to feel the effects. This price rise on the high street may have a significant effect on the build up to Christmas with consumers feeling the pinch of higher prices.
Smaller businesses may thrive on this with a more level playing field being established. This is seen especially through retailers of organic and Fairtrade products. Women's fashion is expected to be the biggest victim due to the more extensive use of cotton compared to menswear this combined with the scheduled VAT increase in January may cause a major difference in prices for the consumer.
The main fair-trade cotton sources are India and African countries such as Mali, this gives the Fairtrade retailers a greater advantage on not being reliant on the countries affected, although they may be affected to an extent by the demand surge, this won't as much of a problem as what the big players may have through chiefly stocking through Chinese and Pakistani sources. Consumers buying Fairtrade cotton products during this time will benefit from greater value and an increased peace of mind knowing the cotton product they wear is from an organic, ethical source.
Why not purchase Women's fairtrade clothing and make a difference to someone less fortunate. Organic clothing is another option helping the global environment.
Cotton price hike, why not try trade fairly
By: Cole Rees
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