Sourcing CottonBasic Information for Adjusting Sourcing Strategies

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Sourcing CottonBasic Information for Adjusting Sourcing Strategies

Change has been constant

Successive rounds of tariffs

Mounting human rights concerns

Volatility in fiber prices & exchange rates

No cotton grownLess than 1.0 million1.0 to 5.0 millionMore than 5.0 million

Average Production last five yearsin 480lb bales

Cotton Production

1 ton = 4.593 bales

Source: USDA – Cotton: World Markets and Trade, data for 2020/21 crop year; August 1, 2020 through July 31, 2021

Four major raw cotton producers in 2020/21

India 29.5 mil bales China 27.5 mil bales U.S. 15.0 mil bales Brazil 12.0 mil bales

The top 4 countries account for about 75% of global production

26%

24%

13%

11%

26%

China

U.S.

Brazil

IndiaOthers

Cotton Production

Source: USDA – Cotton: World Markets and Trade, data for 2020/21 crop year; August 1, 2020 through July 31, 2021

Cotton mill-use orconsumption refers to fiber spun into yarn or used in manufacturing for products such as nonwovens.There are more than 100 countries that use cotton as a raw material in manufacturing.

Cotton Mill Use

Source: USDA – Cotton: World Markets and Trade, data for 2020/21 crop year; August 1, 2020 through July 31, 2021

Cotton used in textile mills

No cotton spunLess than 1.0 million1.0 to 5.0 millionMore than 5.0 million

Average Mill-Use last five yearsin 480lb bales

Cotton Mill Use

Source: USDA – Cotton: World Markets and Trade, data for 2020/21 crop year; August 1, 2020 through July 31, 2021

Six major raw cotton consumers in 2020/21China 38.5 mil bales India 24.0 mil bales Pakistan 10.0 mil bales Bangladesh 7.3 mil bales Turkey 7.2 mil bales Vietnam 6.7 mil bales

These six countries account for about 80% of global mill-use

33%

21%9%

6%

6%

6%

19%

India

China

Pakistan

Turkey

Others

Bangladesh

Vietnam

Cotton Mill Use

Source: USDA – Cotton: World Markets and Trade, data for 2020/21 crop year; August 1, 2020 through July 31, 2021

Top four exporters by origin of raw cotton account for 80% of global shipments of raw cotton

35%

23%12%

10%

20%

U.S.

BrazilIndia

W. Africa

Others

Cotton Exports

Source: USDA – Cotton: World Markets and Trade, data for 2020/21 crop year; August 1, 2020 through July 31, 2021

Cotton Imports

Top five importers of raw cotton account for about 80% of globally traded cotton

24%

16%

15%11%

11%

23%China

VietnamPakistan

Turkey

Others

Bangladesh

Source: USDA – Cotton: World Markets and Trade, data for 2020/21 crop year; August 1, 2020 through July 31, 2021

Source: USDA – Cotton: World Markets and Trade, ITMF – Cotton Industry Statistics, WTO – World Trade Statistical ReviewData in 480 lbs bales. 1 ton = 4,593 bales. Figures may not sum due to rounding.

Source: USDA – Cotton: World Markets and Trade, Beijing Cotton Outlook, and China National Cotton Exchange. Data in 480 lbs bales. 1 ton = 4,593 bales. Figures may not sum due to rounding.

Source: USDA – Cotton: World Markets and Trade, Beijing Cotton Outlook, and China National Cotton Exchange. Data in 480 lbs bales. 1 ton = 4,593 bales. Figures may not sum due to rounding.

Source: USDA – Cotton: World Markets and Trade, Beijing Cotton Outlook, and China National Cotton Exchange. Sanction and seizure information from US Department of Treasury and US Customs and Border Protection. Data in 480 lbs bales. 1 ton = 4,593 bales. Figures may not sum due to rounding.

Sources: Beijing Cotton Outlook, China National Cotton Exchange,

China Customs, Trade Data Monitor. Data in 480 lbs bales.

1 ton = 4,593 bales. Figures may not sum due to rounding.

Sources: Beijing Cotton Outlook, China National Cotton Exchange,

China Customs, Trade Data Monitor. Data in 480 lbs bales.

1 ton = 4,593 bales. Figures may not sum due to rounding.

Sources: Beijing Cotton Outlook, China National Cotton Exchange,

China Customs, Trade Data Monitor. Data in 480 lbs bales.

1 ton = 4,593 bales. Figures may not sum due to rounding.

Sources: Beijing Cotton Outlook, China National Cotton Exchange,

China Customs, Trade Data Monitor. Data in 480 lbs bales.

1 ton = 4,593 bales. Figures may not sum due to rounding.

Sources: Beijing Cotton Outlook, China National Cotton Exchange,

China Customs, Trade Data Monitor. Data in 480 lbs bales.

1 ton = 4,593 bales. Figures may not sum due to rounding.

Sources: Beijing Cotton Outlook, China National Cotton Exchange,

China Customs, Trade Data Monitor. Data in 480 lbs bales.

1 ton = 4,593 bales. Figures may not sum due to rounding.

Sources: Beijing Cotton Outlook, China National Cotton Exchange,

China Customs, Trade Data Monitor. Data in 480 lbs bales.

1 ton = 4,593 bales. Figures may not sum due to rounding.

Sources: Beijing Cotton Outlook, China National Cotton Exchange,

China Customs, Trade Data Monitor. Data in 480 lbs bales.

1 ton = 4,593 bales. Figures may not sum due to rounding.

Yarn Manufacturers Buy Cotton Based on Fiber Quality

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Sourcing CottonBasic Information for Adjusting Sourcing Strategies

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