Cotton Incorporated 2008 Annual Report

As we begin our journey along the road ahead, we can be encouraged by the distance we have already traveled. To the grower or manufacturer of 50 years ago, the current technologies used by the cotton industry would seem the stuff of science fiction. As the author Arthur C. Clarke once observed, “any sufficiently new technology is indistinguishable from magic.” Creating that particular brand of magic is the cornerstone of Cotton Incorporated. Through our research and promotional activities over 2008, the company continued its mission to keep cotton vital in the field and viable in the marketplace.

Even amid the turmoil of the past year, there was good news for cotton’s future. A key example is the completion of a study tracking the spread of an herbicide-resistant weed threatening both cotton and soybean crops. The data collected are critical to anticipating the path of the weed, which in turn will better prepare growers in those areas for the threat to their crops. Additionally, a Natural Resource Survey of U.S. growers was completed. The survey results showed that, over the past decade, cotton production has had a positive effect on its surrounding environment with respect to wildlife and the conservation of natural resources. These results go far in illustrating the Sustainability of cotton today, but they also demonstrate how research and the widespread promotion of innovations can lead to industry-wide improvement.

The past year also rewarded our perseverance in promoting Cotton Incorporated technologies. A series of major technical adoptions are an encouraging sign for increased cotton demand at the trade and consumer levels, moving forward. Significant among these adoptions was that of the Engineered Fiber Selection® System by the largest mill in the world. The mill’s production capacity and range of products create an opportunity for its increased use of cotton fiber. In addition, several athletic apparel brands have adopted, or are near adopting, moisture management technologies developed by Cotton Incorporated. These commercial launches will help move cotton closer to regaining its share of this desirable apparel category.

Strategic decisions regarding China in 2008 will solidify our effectiveness and efficiency in the region. Key among these decisions was the opening of a Hong Kong office in the spring. Through this central location, the Hong Kong team is able to better service sourcing decision makers, and provide local assistance to the manufacturers in the region. On the consumer side, we also continued our successful cotton awareness-building initiatives in China, in partnership with Cotton Council International.

Our relationships with such affiliated organizations as the Cotton Board, Cotton Council International, and the National Cotton Council remain crucial to honing our strategies and expanding the reach of our promotions. By combining our expertise through joint ventures such as the Cotton Sustainability Summit, the Importer Support Programs and the Sourcing USA Summit in 2008, we were able to convey a stronger and more unified message to the trade and the media about cotton’s present and future.

The road ahead may be long, the climb may be steep, but our way is clearly marked and I believe that we will arrive at our ultimate destination stronger and wiser for the journey.

J. Berrye Worsham
President & Chief Executive Officer

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