Impacts of new ESG measures under discussion in the EU on Brazilian companies
By Maria Eduarda Hajjar Milki and Julia Pillati, lawyers at Barral Parente Pinheiro Advogados
Cotton cultivation is one of the most complex and challenging, as it requires high investment and is susceptible to climatic and macroeconomic factors. Despite this, it is profitable when considering the wide range of opportunities in the textile sector. Recent data from the National Supply Company (Conab) already indicates a possible recovery in exported volume to a level close to 2 million tons of lint at the end of the 2022/2023 harvest, in addition to a carryover stock of approximately 1,75 million tons.
In this scenario, the price for the lint may vary and what influences its value are the physical characteristics of the fiber post-harvest. When we talk about fiber quality, we consider elements such as the short fiber index (SF), length (UHML or POL), length uniformity (UI), resistance (STR) and micronaire (MIC), characteristics taken into account for determine the quality of the product, its market value and export requirements.
The technology involved in correctly identifying fiber quality after processing, using high-volume equipment (HVI) has been consolidated as the basis for national and international cotton trade, adding greater precision. But what can the producer do to achieve high levels of quality? The main secret lies in the genetics present in the seed and the best management practices.
We can consider some actions as the most important to achieve fiber quality that meets export standards and that must be taken by the cotton farmer to obtain a high production ceiling. The path initially involves a seed with biotechnology capable of protecting the cotton plant from diseases, pests and weeds and guaranteeing adaptability by region and for two harvests. Next comes soil fertility and compaction, then effective disease and pest control and growth regulation to balance the plant throughout the cycle.
It is known that the climate is increasingly unpredictable and subject to bad weather, even more so in times when we are already feeling the impact of climate change globally. But there is an important factor that the farmer can control and that directly affects the quality of the fiber, which is the interaction between genetics and the environment. This is because a seed with biotechnology associated with environmentally integrated management, together with soil profile work, can guarantee greater productivity, health and plume quality.
With this, we can make cotton cultivation more tolerant to rain, water scarcity or extreme heat, in addition to ensuring profitability for a commodity in a global market that generates around US$12 billion annually. Today, producers can find several solutions that allow integrated management, ranging from the choice of cultivar, planting time, soil fertility, investment in the organic part and the adoption of a growth regulator. New germplasm brings fiber yield potential of around 43% and resistance to the main diseases and caterpillars that affect cotton.
It is worth remembering that the adoption of management that enables responsible production, combining greater productivity and input savings, goes beyond the quality of the fiber as a result. By producing sustainably and optimizing the use of natural resources, cotton farmers can not only achieve greater productivity in the same area but also meet an important market demand. This demand, also associated with greater traceability throughout the chain, comes not only from the textile industry and brands, but also from consumers, who are increasingly aware.
Traceability, which provides an x-ray of the product that reaches the market, is a reflection of the increasing search for ethical and responsible production, which has even guided business decisions and investments by companies in different sectors. Producing effectively, sustainably and with final quality will be mandatory in the future. It is up to the cotton farmer to invest in the best practices to extract the maximum fiber quality with the lowest possible environmental footprint - tools for this are already in the field.
Luana Bonamigo, cotton specialist and Cotton Market Development Manager for Bayer's agricultural division
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