Ahmed Mansur, like many farmers, has long thrived on Egypt's famed “white gold” cotton; but with prices uncertain and production costs soaring he is more and more inclined to go “green.” “Fruit and vegetables make money,” said Mansur, who owns about a hectare (2.5 acres) of land in Inshas, a village northwest of Cairo. Until last year he devoted his farming efforts exclusively to producing cotton. Now only half his lands are cottonfields; the rest are planted with rice and a smattering of other crops, including vegetables. “I will have to stop growing cotton altogether if prices fall further. Costs are high and harvests are smaller,” he said. The Egyptian cotton crop has shrunk to its lowest total in more than a century and producers are demanding a return to subsidies like those still paid in some other countries. The “100 percent Egyptian cotton” label conquered the world after Egypt's modern founder Mohammed Ali introduced the crop to Egypt in 1820. Ever since then Egypt's superior quality, long and extra long staple cotton has generated strong demand from luxury designers and upmarket establishments. But due mainly to the liberalization of cotton trade and the global financial crisis the bubble has burst and the demand for Egyptian cotton has slowed, leading to less of the crop being planted. The International Cotton Advisory Committee (ICAC) says industrial usage of cotton declined by 12 percent globally in 2008-2009. This year's harvest in Egypt was 54 percent less than that of a year ago. Figures from the Ministry of Trade and Industry show production for the latest 2008-2009 season reached 105,000 tons, the lowest since before 1900, when output was already at 272,000 tons according to experts. Land allocated to plant Egypt's “white gold” has shrunk in recent years from 275,000 hectares in 2007 to around 158,000 hectares in 2008. “It used to be that we planted cotton everywhere, but because revenues are not guaranteed we have decided to grow other crops on part of the land,” said Mansur. The price of Egyptian cotton has dropped only slightly from $3,575 a ton last season to $3,350 a ton in 2008-2009. Farmers nonetheless are turning away from “white gold” because prices are no longer guaranteed. According to experts, the decline of cotton production began in 2004 with the total liberalization of cotton trading under agreements signed between Egypt and the World Trade Organization.
