Project Summaries

12-228  Project Manager: J. M. Reeves

COST OF COTTON PRODUCTION IN GREECE: ECONOMIC IMPLICATIONS FOR U.S. COTTON PRODUCERS

Mechel Paggi, California State University, Fresno Foundation

Cotton is an important crop for Greece as it is only one of the two countries producing cotton in European Union along with Spain. The cotton harvested in Greece accounts for only about 0.5% of the total agricultural production of European Community (LMC international, 2007). The main cotton growing areas of Greece are Thessaly and Macedonia. Cotton constitutes 60 percent of the arable area in Thessaly, whereas in Macedonia, it is about half of the total arable land. Most of the cotton is grown in small, highly specialized farms. In 2012, cotton was grown in about 260,000 ha of land producing about 1.15 million bales and exporting almost 90 percent of it. The majority of cotton farmers in Greece grow between 2 and 5.1 hectares of cotton, whereas the average cotton growing area was 4.5 hectares in 2005 (LMC international). Almost all the cotton crop is grown under irrigated conditions, though the availability of irrigation water is more in Thessaly than in Macedonia. There are approximately 30 ginning companies in Greece and the top 5 companies handle about 60 percent of ginning capacity. The Greek cotton sector was plagued by low production, bad quality, defaults, and delivery problems in 2009, but it regained its status by 2011-12.

 

Project Year: 2012
 

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