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Textile Market Valuation of Cotton Quality Attributes

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  • Chen, Changping
  • Ethridge, Don E.

Abstract

This study analyzed cotton pricing structures associated with quality attributes at the end-use point of the U.S. cotton market using a hedonic framework for the 1992-1995 period. Results based on the information from primary market transactions show how the price of cotton is influenced by fiber attributes -- trash content, color, staple, fiber fineness and maturity, etc. The textile industry differentiates cotton by the region of origin in terms of fiber attributes. Fiber premiums and discounts were substantially different between the West and South Central regions. Staple premiums and discounts were different between the West and South. Micronaire discounts differed across all regions. This study provides the first objective evidence on cotton price-quality relationships at the end-use point of a cotton market that is based on bona fide market transactions.

Suggested Citation

Handle: RePEc:ags:nc8191:285676
DOI: 10.22004/ag.econ.285676
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