What else is new.... Prices went up Really???

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High cost of cotton hits South Jersey; world prices up 132 percent in past year
By BRIAN IANIERI Staff Writer | Posted: Saturday, February 26, 2011 5:19 pm



From jeans to XXL T-shirts, cotton swabs to bathroom towels, the fabric of our lives is growing more expensive.

Cotton prices have reached record levels and caught the eye of local retailers and wholesalers who may pass on the costs to consumers.

“Some of the increases we have to pass on because in the past, we’ve eaten it a little,” said Bill Love, owner of Court House Uniforms on Route 9 in Middle Township.

The company supplies medical uniforms, restaurant wear, shirts, pants, vests and shoes.

“I told some of the customers the prices are going up on certain items as the new stock comes in. The response has been from ‘What else is new?’ to disdain.”

Apparel joins items including gasoline, coffee, carbonated drinks, fruits, vegetables, meats and cereals that got more expensive last month, according to the federal Bureau of Labor Statistics’ Consumer Price Index.

But cotton is among the items that have seen the most pronounced price increases.

World cotton prices increased 132 percent in the past year, seeing the sharpest increases from August 2010 to January of this year, according to the National Cotton Council of America.

In January, cotton was worth $1.79 per pound, nearly a dollar more than a year ago, and has been edging toward $2 per pound this month.

The International Cotton Advisory Committee says low world stocks of cotton, limited further supply as well as increased demand and pressure from competing crops such as soybeans and grains may be causing the price surge.

Michael Hagan, owner of Michael Anthony Graphics LLC on Route 9 in Upper Township, said cotton prices have increased T-shirt prices between 10 percent to 15 percent.

The increases are more significant with larger shirt sizes — XXL and XXXL — which use more material, he said.

“I’ve been in the business for 22 years and never seen it rise this high in this short a period of time,” Hagan said.

Cotton comes from all over the world.

The United States is the world’s third largest producer of cotton, behind China and India, according to the National Cotton Council. The U.S. exports about half of its cotton.

For the everyday consumer, a drastic increase in cotton prices is less noticeable than a bump in gasoline prices, which can hit your wallet once a week.

(Regular gas in Atlantic and Cape May counties averaged $3.14 per gallon on Friday, 59 cents more than a year ago, according to AAA’s Daily Fuel Gauge Report.)

Ehren VonReuter, owner of EVR Screen Printing on West Peach Street in Vineland, said increasing cotton prices have not hurt business.

In fact, his business, which makes custom T-shirts and clothing, has picked up, he said.

The cotton price accounts for about 50 cents more per shirt, he said.

However, some companies that buy his products in bulk seem to be shopping around for prices more than in the past, he said.

But there are no across-the-board trends.

Smaller companies and organizations with smaller, tighter budgets seem to be shopping around the most.

“Now they ask more questions, wanting to know if there’s a cheaper product on the market. They’re shopping,” he said. “Then there’s other companies. We just did 800 shirts yesterday and they didn’t blink an eye.”

VonReuter said his distributors had e-mailed him, warning that cotton prices were going up.

“The reality is it’s like stock, prices go up and down. But it’s really going up. ... As far as who’s affected, I’ll have a better answer four months from now. I’ll let you know if sales go down.”

Contact Brian Ianieri:

609-272-7253

BIanieri@pressofac.com



Cost of cotton

Average annual cotton prices over the past 10 years, per pound.

2002: 46 cents

2003: 63 cents

2004: 62 cents

2005: 55 cents

2006: 59 cents

2007: 65 cents

2008: 72 cents

2009: 63 cents

2010: 105 cents

2011 (Jan.): 179 cents

[NY Bearhunter]

GAS... 365 CENTS PER GALLON, TELL ME, WHICH MEANS MORE...

[Captain Michael Buffington]

WAKE UP SHEEPLE!

Mike