Cotton Price Responsivenss to Quality in the U.S.: Textile Mill Prices Paid Vs. Producer Prices




Chen, Changping
Ethridge, Don E.

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National Cotton Council of America


An attribute pricing model was used to examine the impacts of cotton fiber characteristics on cotton prices in the U.S. market. Information on cotton prices and quality attributes from the USDA was used in the pricing analysis. Results revealed that all measured cotton quality attributes had significant impacts on prices paid by the U.S textile industry over the study period (1977-1990). In the formation of textile mill prices, the fiber quality attributes having impacts , in order of importance, were fiber length, whiteness, micronaire, fiber stregth, yellowness, and trash content. However, the fiber attributes of micronaire and length had no significant influence on the prices received by cotton producers. It was not concluded that the cotton market system was not operating efficiently in getting price signals through to cotton growers.




Ethridge, D., C. Chen. "Cotton Price Responsiveness To Quality in the U.S.: Textile Mill Prices Paid vs. Producer Prices Received." Beltwide Cotton Conference, 1993.