The Cotton Industry of the United States, Essay Example

The United States is hailed as the top two producer of cotton around the world and the top performer in exporting the said material in the international trade. Understanding this fact, the American government tries to instantiate a system that would fully support the industry as it yields an important source of national income. To make sure that the industry is properly supported, the government provides ample subsidy to cotton growers so as to fund their operations. Apart from the support of the government, there are three other important aspects of success that the industry is known for.

One is the shifting of operations towards sustainability; this approach allows the industry to lower the cost of shifting and operations expenses. Shifting to reusable plastic bands for transport instead of steel, the growers find it easier to make adjustments on how they are to send their products for export. Another aspect is that of the rising demand for clothes. After the economic changes that happened during the time of financial crunch, the textile industry now experiences influx of demand that further increases demand for cotton as well. The third aspect is the slowing down of the other country’s production of their own sources of cotton. For instance, China and India have specifically experienced lower cotton harvests in 2010 hence pushing them to import from other top producers such as the US. The competition on prices between worldwide producers of cotton also creates a relatively competitive stance for the US’ cotton industry. These changes in the industry specifically creates a remarkable change on how the US cotton is accepted in the market hence making it easier for the said industry to gain attention and support from its host country’s government which further funds its growth.