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| Title*: |
| Cotton Price increases |
| Date: |
| 07/21/2010 |  |
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| Text on Home Page*. (A paragraph of descriptive text for the home page only) |
| Increase in demand of cotton leads to shortages and price increases.... |
 Many of you may have seen the news recently in the national press that cotton prices have significantly increased over the past few months which has inevitably led to an increase in the price we have to pay for our cotton supplies which, we then unfortunately, have to pass on to our customers.
Obviously everyone within the industry is in the same boat but it still means that there has been a hectic few weeks of re-pricing items and then our customers approaching competitors to see how much they are increasing their product lines. This is not only time consuming but also raises the prospect of customers going elsewhere – however so far this doesn’t seem to have been too much of a problem although a lot of Chinese whispers and bargaining has been done!
The inc rease in prices is a direct result of the rest of the world buying cheap Chinese goods. As China gets richer on the back of this, the population also gets richer, and demand for consumer goods within China also increases. If everyone in China suddenly decides they can afford an extra T-Shirt; that’s over 1 billion T- Shirts required. That takes up a huge amount of cotton so China starts importing it, and world demand increases with the result being that the price goes up!
So next time you need a T-Shirt – buy British!
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