As profits increase, Antoshak believes farmers will begin to focus on cotton production. Despite that, he explained that the time required to grow cotton as well as the limited acreage available mean cotton volumes will not be high enough to drive prices down to 2008 levels.
"There's no reason to believe that global demand will not stay at current levels," he said. "Production will go up and will try to meet demand, prices have the potential for easing somewhat, but I don't see it going back to $0.65 a pound. Having said all that, I think the shortage is at least continuing through 2012."
- Companies:
- SanMar Corporation
- People:
- Robert Antoshak
Kyle A. Richardson is the editorial director of Promo Marketing. He joined the company in 2006 brings more than a decade of publishing, marketing and media experience to the magazine. If you see him, buy him a drink.