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Cotton Council International
Mediterranean Region BriefingTurkey, Egypt, Morocco, Tunisia
Marsha Powell, CCI Istanbul26 August 2010
GLOBAL PERSPECTIVE: TEXTILE / APPAREL
000 Bales Turkey Egypt Morocco Tunisia
Cotton Production 2,100 (#8)
600 1 10
Spinning Capacity 5,700 (#4)
850(#13)
155 90
Textile Export Ranking #9 * * *
Garment Export Ranking #5 * * *
* Not Ranking in Global Top 15
IMPORTANCE FOR US FIBER EXPORTS
2009 / 2010Exports
2010 / 2011Commitments
Total Exports 13,526 3,206.5
China - #1 3,660 (30.9%) 920.7
Turkey - #2 2,145 (18.1%) 300.8
Egypt 24.9 4.0
Morocco 70.3 56.8
Tunisia 13.0 1.8
000 bales
TURKEY
• Little bigger than Texas
• 72.8 million population (26.9% under 15 years old)
• Republican Parliamentary Democracy
• GDP = US$863.3 billion (US$11,200 / per capita)
• 29.8% Arable land / 3.4% permanent crops
• Exports = US$110 billion
• Imports = US$135 billion
Overview
Turkish Cotton Production and Usage
Turkey Cotton Production and Imports
3,91 3,6 3,55
0,6
1,961,15
1,53
32,3
0,09
0,06 2,160,12
0,46
1,24
0
1
2
3
4
5
6
7
1990 1995 2000 2005 2010
Mill
ion
bale
s
Imports from US
Turkish Production
US Share of Turkish Imports
Turkish share of U.S. Cotton Exports
Imports from other countries
41.3% 11.9% 34.6% 56.2% 63.6%
1.1% 0.8% 9.0% 11.2% 18.1%
TURKEY’s TEXTILE CENTERS
Marmara - 20%
Aegean - 10%
Mediterranean - 10%
Middle Anatolia - 15%
SE Anatolia - 43%
TURKEY
Industry Composition
Cotton Spinners 250
Weavers / Knitters 3,000
Garment Manufacturers 28,000 (18,000 in Istanbul)
Home Textile Companies 2,000
Brand / Retail Buying Offices 50-60
EGYPT
• 3 X size of New Mexico
• 80.5 million population (32.8% under 15 years old)
• Republic
• GDP = US$471.2 billion (US$6,000 / per capita)
• 2.9% Arable land / 0.5% permanent crops
• Exports = US$26.3 billion
• Imports = US$47.6 billion
Overview
EGYPTIAN COTTON CENTERS / QIZ
EGYPT
Industry Composition
Cotton Spinners 35
Weavers
Knitters 1,000
Dyehouses
Garment Manufacturers 2,250
Home Textile Companies 100
Brand / Retail Buying Offices 10
EGYPTIAN QIZ (Qualified Industrial Zone)
Promoting Market Access• No Duty on Exports to US (-22% on cotton, -33% on polyester)
• 35% of product value must be manufactured in QIZ
• Must have 10.5% Israeli content by value
• More than 750 companies registered for QIZ operation
• 80% in textiles and garment manufacturing.
• Investment incentives from Egyptian government (attracting Turkish, Taiwanese, Indian investments)
•Garment exports focused 80% on US market, despite geographical proximity to EU
MOROCCO
• A little larger than California
• 32 million population (28.2% under 15 years old)
• Constitutional Monarchy
• GDP = US$148.0 billion (US$4,600 / per capita)
• 19% Arable land / 2% permanent crops
• Exports = US$14.8 billion
• Imports = US$31.2 billion
• Free Trade Agreement with US since 2006 but not used due to high unit price, low capacity and lack of market knowledge
Overview
MOROCCO
< 10 miles
Regional Distribution of Textile and Clothing Manufacturing Capacity
• Casablanca – 63%
• Tangier – 10%
• Rabat – 8%
• Fez – 5%
MOROCCO
Industry Composition
Cotton Spinners <10
Weavers
Knitters 540
Dyehouses
Garment ManufacturersMajor Markets are:Spain 39%, France 35% and UK 9%
865
Brand / Retail Buying Offices <10
TUNISIA
Overview
• A little larger than Georgia
• 10.6 million population(22.2% under 15 years old)
• Republic Government• 17% arable land / 13% permanent crops
• GDP = US$84.0 billion(US$8,000 / per capita)
• Exports = US$14.4 billion
• Imports = US$19.0 billion
TUNISIA
Industry Composition
Cotton Spinners 28
Weavers 39
Knitters 251
Garment ManufacturersMajor Markets are:France 37%, Italy 32% and Germany 9%
1,508
Brand / Retail Buying Offices <5
17
17
TUNISIA
82% in Northern Regions, 80% are garment manufacturers, most with <100 employees
Trousers & Jeans
26.3%
Knitwear
14.5%
Underwear
12.2% 9.3%
Workwear
INDUSTRY CAPACITY
SPINNINGSpindles Rotors
WEAVINGShuttle-less Shuttle
KNITTINGCircular Flat
TURKEY 6,585,000 601,520 40,376 20,000 9,128 8,549
EGYPT 1,864,000 15,000 3,915 1,400 1,823 120
MOROCCO 450,000 40,000 2,128 4,000 440 73
TUNISIA 140,400 6,500 272 1,848 116 120
INDUSTRY COMPOSITION
Turkey Egypt Morocco Tunisia
Spinners 250 35 <10 28
Weavers / Knitters / Dyehouses
3,000 1,000 540 353
Garment Manufacturers
28,000 2,250 865 1,508
Garment Exports to EU 71% 20% 92% 95%
Garment Exports to US 3% 80% 1% <1%
MEDITERRANEAN REGION OVERVIEW
TURKEY EGYPT MOROCCO TUNISIA
• Cotton Production • Cotton Production • No Cotton • No Cotton
• Spinning • Spinning • Small Spinning • Small Spinning
• Yarn + Fabric • Yarn + Fabric • SM Yarn + Fabric • SM Yarn + Fabric
• Garment + Home • Garment + Home • Garment • Garment
• Major EU Supplier • Small EU Supplier • Med. EU Supplier • Med. EU Supplier
• Negligible US Supplier
• Small US Supplier• Negligible US Supplier
• Negligible US Supplier
MEDITERRANEAN REGION OVERVIEW
TURKEY EGYPT MOROCCO TUNISIA
• Cotton Production • Cotton Production • No Cotton • No Cotton
Imports 50% Net Exporter Importer Importer
• Spinning • Spinning • Small Spinning • Small Spinning
Net Exporter Net Importer Net Importer Net Importer
• Yarn + Fabric • Yarn + Fabric • SM Yarn + Fabric • SM Yarn + Fabric
Net Exporter Net Importer Net Importer Net Importer
• Garment + Home • Garment + Home • Garment • Garment
Net Exporter Net Exporter Net Exporter Net Exporter
• Major EU Supplier • Small EU Supplier • Small EU Supplier • Small EU Supplier
# 2 - Supplies 12%#14 –Supplies
1%#6 - Supplies 3% #5 -Supplies 4%
• Negligible US Supplier
• Small US Supplier • Negligible US Supplier • Negligible US Supplier
Supplies <1% Supplies 2% Supplies 0.1% Supplies 0.1%
IMPORTANCE TO US Market
Turkey Egypt Morocco Tunisia
% $ Textile Trade 1.3% 0.4% 0.0% 0.0%
% $ Apparel Trade 0.9% 1.9% 0.1% 0.1%
All Cotton Bottoms(pieces)
4.4 mil 67.8 mil - -
T Shirts(pieces)
6.8 mil 56.6 mil - -
Shirts (Woven)(pieces) 1.9 mil 3.6 mil - -
*Egyptian volumes significantly higher but overall trade lower due to low Egyptian unit prices
@ 15 X Turkish volume
@ 8 X Turkish volume
IMPORTANCE TO EU Market
Turkey Egypt Morocco Tunisia
% Euro Textile Trade18%#2
1% 1% 1%
% Euro Apparel Trade12%#2
1%#14
3%#6
4%#5
Cotton Bottoms (piece / EU market share)
137.5 m(9.2%)
16.0 m(1.1%)
38.4 m(2.6%)
43.1 m(2.9%)
Knit Tops (incl. T-shirts) (pieces / EU market share)
432.7 m(28.5%)
41.2 m(2.0%)
82.9 m(4.4%)
50.4 m(7.4%)
MEDITERRANEAN REGION
Turkey
Egypt
MoroccoTunisia
Algeria Libya
Syria
Garment ShippingUS: 7-10 daysEU: 2-3 days
Port
Geographical Proximity
Greece
Iraq
Iran
Turkmenistan
MEDITERRANEAN REGION
Turkey Egypt Morocco Tunisia
% of National GDP 8% 9.4% 11% 8.3%
% of Industrial Production 16.3% 25% 24% 24%
% of Manufacturing Workforce
11.4% 30% 38% 46%
% of Export Earnings 18% 25% 33% 35%
Value Textile and Apparel Exports
$19.3 billion $3 billion $3 billion $3 billion
National Importance of Textile / Apparel Sector
CCI’S SCM PROGRAM
• Turkish garment manufacturing becoming less competitive• Europeans are looking for shorter lead times, smaller orders• Turkey is the biggest yarn and fabric supplier in the region
Turkey Egypt Morocco Tunisia
Change 2009/2008Apparel Imports to EU27
-12% -12% -16% -12%
Change 2008/2007Apparel Imports to EU27
-11% 10% -6% 1%
Change 2010/2009Textile Exports from Turkey to(January-June period)
n/a 39% 18% 42%
Why SCM?
CCI Regional Activities
Trade Communications
Market Information
International Meetings(Summit)
US Education (OT, STM)
Local Seminars /Industry Events
Electronic Bulletin
Trade FairSponsorship
Trade Advertising
CCI SCM Activities
Trade Communications Supply Chain
Market Information •Researching Industry
International Meetings(Summit)
•Profiling Garment Manufacturers
US Education (OT, STM) •Introducing to Nearby Turkish Textile Suppliers
Local Seminars / Industry Events
•Personal Meetings at Regional Sourcing Event
Electronic Bulletin •Trade Advertising
Trade Fair Sponsorship
Trade Advertising
Come see your program first hand in Turkey!
CCI / Cotton Incorporated TurkeyMarsha PowellRecep EkizcelerogluSerap Korkmaz
www.cottonusaturkey.com
Thank you from your Team in Istanbul !!!
