The Washington-based International Cotton Advisory Committee (ICAC) Expert Panel on Social,
Environmental and Economic Performance of Cotton Production (SEEP) has released three reports
covering pesticide use in cotton production, production efficiency and energy use in cotton
production, and the components of labor costs in major cotton-producing countries. Below are
excerpts from the abstract of the very interesting and detailed reports:

Worldwide, the annual sales of crop protection chemicals on cotton rose from $2.6 billion in
1999 to $3 billion in 2009, but because of inflation and the use of more expensive chemicals,
applications of active ingredients per hectare have fallen. The use of pesticides on cotton peaked
in the 1990s when cotton accounted for about 20 percent of all insecticides used in agriculture.

Agriculture accounts for about three-fourths of human water consumption, and cotton
production accounts for about 3 percent of the volume of water used for global crop production,
proportional to cotton’s share of world arable land use. The amount of energy required in cotton
production varies primarily because of differences in yields and the use of irrigation.

An estimated 110 million households produce cotton in more than 80 countries. When family
labor, hired labor and employment in ancillary industries such as transportation, ginning and
warehousing are included, total employment in the cotton industry reaches more than 200 million
each season. Cotton industry employment in the eleven countries represented in the latest SEEP
report on labor cost components totals about 45 million, with India alone accounting for 35
million. In some countries, such as Australia, Brazil and the USA, employers are required to
provide substantial benefits to employees ranging from health insurance to education for children.

Editor’s note: The SEEP Fact Sheet on Pesticide Use in Cotton Production is available online
at:
http://icac.org/wp-content/uploads/2012/04/seep_pesticides_facts1.pdf
The SEEP Fact Sheet on Production Efficiency and Energy Usage in Cotton Production is
available online at:
http://icac.org/wp-content/uploads/2012/04/seep_efficiency_energy_facts.pdf
The full SEEP report titled “Survey of Cotton Labor Cost Components in Major Producing
Countries” is available online at:
http://icac.org/wp-content/uploads/2012/04/seep_labor_survey_20121.pdf

Zeroing In On Labor Costs

The following excerpts come from the report on labor costs:

The ICAC Secretariat completed this report over a three year period between 2009 and 2011 on
behalf of the SEEP. The report is a response to questions from Member Governments of the ICAC
regarding the social consequences of cotton production practices and labor requirements in
different countries.

The objective of the report is not to quantify labor costs per kilogram or hectare of cotton
production; this is not a report on the cost of cotton production. Rather, the purpose of the
report is to identify the different cost components associated with labor in cotton production.

The ICAC Secretariat developed a template for information about labor practices in the
cotton industry and asked researchers in 18 major cotton producing countries to provide
information. As of November 2011, responses had been received from researchers or government
agencies in eleven countries.

Cotton accounts for about 2.5% of world arable land. Because one hectare of cotton is
generally worth more than one hectare of grain or oilseeds, cotton’s share of world crop production
is probably higher than its share of arable land.

Below are some excerpts from the reports on different countries:

Australia

The number of people employed by the cotton industry in a non-drought year is estimated at
10,000. Total agricultural employment in the Australia is estimated at 3.6% of the total labor
force, or approximately 430,000. Accordingly, cotton industry employment in Australia represents
about 2% of agricultural employment and less than 0.1% of total employment.

[Thirty-three percent] of cotton growers, and only 15% of other farmers earned over AU$1000
per week. The proportion of cotton growers in lower income brackets is also less, with 32% of
cotton growers earning less than $600/week, whilst 60% of other farmers are earning less than
$600/week. Wages have risen, but not as steeply as one might expect, as better technology enables
the more efficient use of labor. Minimum wage for a general farm hand is AU$562/week.

The normal work-week is 38 hours. The data show that 54% of cotton growers and 43% of other
farmers were working more than 49 hours per week.

Brazil

Average employment among commercial producers is one worker per 28 hectares. In 2011,
Brazilian cotton area is estimated at 1.4 million hectares, suggesting that on-farm employment is
approximately 50,000. An estimated 21 million, or 20% of Brazilian labor, is employed in
agriculture. Accordingly, cotton industry employment represents just 0.2% of Brazilian agricultural
employment and just 0.05% of total employment.

The minimum wage in Brazil is R$545/month (US$340/month) for agricultural workers. Actual
wages in some states are higher, depending on local wage conditions. Skilled labor, such as
machinery operators, chemical applicators, or managers, receive between R$1,500 and R$5,000 per
month (US$940 and $3125 per month.)

The maximum work-week is 44 hours. Overtime must be paid for hours more than 8 hours/day or
more than 44 hours/week.

Burkina Faso

Burkina Faso has an estimated 300,000 family-run cotton farms, providing work for about one
million people, and supporting the incomes of about one-fourth of the total population. Out of a
total labor force of 6.7 million, agriculture accounts for 34.2% or 2.3 million. Thus cotton
industry employment in Burkina Faso represents nearly half of total agricultural employment and
about 15% of total employment.

A farm worker may have an informal contract up to 10 months. The contract amount is from
80,000 to 100,000 CFA ($175 to $215). They are paid after the crop is sold.

For casual wage labors, they work for specific agricultural operations. The average daily
rate is 750 CFA ($1.60) for a 6-hour average work time.

Colombia

Cotton industry employment in Colombia is estimated at 12,000. Agriculture accounts for 9.2%
of total employment, or about two million people. Accordingly, cotton accounts for 0.6% of total
agricultural employment and 0.06% of total employment.

The minimum wage in Colombia is US$229/month. Wages in some departments are lower, depending
on local wage conditions. Skilled labor receive the same wage, managers receive between US$1,675
and US$3,400 per month. Managers’ wages may be higher or lower depending on the size of the
cooperative, and have additional fringe benefits. Maximum work-week is 48 hours.

Egypt

Cotton industry employment in Egypt is estimated at 500,000, or about 5 persons per hectare.
Agriculture accounts for 32% of total employment, or 8.4 million people. Thus cotton industry
employment represents about 6% of agricultural employment, or 2% of total employment.

The minimum wage per month is 500 Egyptian pounds ($83). Some workers are paid several
thousands according to experience and responsibility. Workers have a monthly incentive of between
one to three months’ wages. For permanent workers, the maximum work-week is 42 hours.

Greece

Cotton industry employment in Greece is estimated at 50,000. Field workers are mainly
economic immigrants from the neighboring Balkan states. Agriculture represents 3.3% of total
employment, or about 165,000. Thus cotton employment represents nearly one-third of agricultural
employment, and about 1% of total employment in the country.

The wages for field workers for 8 hours of work ranges between 25 and 35 euros/day (US$35 to
$50) depending on the region. For industrial workers, the minimum wage as of January 2009 is 33.04
euros/day ($46) with increases of 3.5% for every 3 years work. Skilled labors, such as machinery
operators, chemical applicators, or managers receive between 1,000 and 2,000 euros per month
($1,400 and $2,800). The maximum work-week for industrial workers in Greece is 40 hours.

Pakistan

Agriculture accounts for 21.8% of total employment in Pakistan, or about 12 million people.
Thus cotton industry employment represents 17% of total agricultural employment or about 3.5% of
national employment.

Managers are paid Rs10,000 per month (US$115) during the 8-month agricultural season, or
Rs80,000/year ($930) per 100-acre (40 ha) farm unit. Skilled labors (tractor driver) are paid
Rs6,000 ($70) per month, or Rs 48,000/year ($560). Unskilled labor is paid Rs5,000 per month ($60)
or Rs60,000 per full calendar year ($700). Contractual labor for thinning, weeding, etc., is paid
Rs 200 per acre ($2.30) or Rs 20,000/year ($230). Hand picking by female labor is paid Rs3.50 per
kg of seed cotton (4 cents per kilogram).

South Africa

For the period April to June 2009: 710,000 were employed in the cotton industry. The ICAC
Secretariat estimates employment in the South African cotton industry at 48,000. Agriculture
accounts for 2.5% of total employment, or 435,000. Thus cotton industry employment represents about
10% of agricultural employment and about 0.3% of national employment.

The monthly minimum wage is R1,231 (US$122).as of March 2009. The maximum hours to be worked
in any 24-hour period are 12. If a worker is working for 1 to 5 days a week, the ordinary hours per
day will be 9 to a total of 12 hours per day (including overtime), 45 hours per week with a total
of 15 hours overtime per week.

Sudan

Cotton industry employment in Sudan (Here, Sudan refers to the united nation of Sudan prior
to the independence referendum by South Sudan.) is estimated at 300,000. About 2.8 million people
live in the Gezira Scheme and depend on it for their livelihood as farmers, sharecroppers,
agricultural laborers, traders or providers of various services. The core of this population is
made up of about 129,000 farmers with an associated population of about 903,000. Agriculture
represents 30.5% of total employment in Sudan, or 3.6 million. Thus, cotton industry employment is
about 8% of agricultural employment or 2.5% of national employment.

USA

Employment in the U.S. cotton industry is estimated at about 100,000. Agriculture represents
just 1.1% of U.S. employment, or 1.7 million. Thus, cotton industry employment represents 6% of
agricultural employment but just 0.07% of total employment.

Wage rate for hired workers ranges between US$10.07 and US$10.85 per hour. The minimum wage
is US$7.25 per hour.

Hired farm workers make up a third of the total agricultural labor force and are critical to
U.S. agricultural production, particularly for labor-intensive sectors such as fruits and
vegetables. In 2006, 1.01 million hired farm workers made up a third of the estimated 3.0 million
people employed in agriculture. The other 2.05 million included self-employed farmers and their
unpaid family members. Workers employed on small farms (i.e., those that used less than 500
“man-days” of farm labor in any calendar quarter of the preceding calendar year) are exempt from
both the minimum wage and overtime pay requirements.

Average employment in 2010 was 40.1 hours. According to the USDA, hired labor cost cotton
producers US$16.42 per planted acre in 2007 and US$16.33 per planted acre in 2008. Opportunity cost
of unpaid labor for those years was US$37.10 per planted acre in 2007 and $39.05 per planted acre
in 2007.

April 24, 2012

TOKYO/AUBURN HILLS, Mich. — March 21, 2012 — Teijin Limited announced today the April 1 opening of
the Teijin Composites Application Center (TCAC), a technical center to develop automotive and other
industrial applications of carbon fiber reinforced thermoplastic (CFRTP) composite products, in
Auburn Hills, Michigan.

The TCAC is part of Teijin Advanced Composites America Inc. (TACA), a company Teijin
established in December 2011 to conduct marketing and develop applications for CFRTP composite
products. TACA is a wholly owned subsidiary of Teijin Holdings USA, Inc., the Teijin Group’s
holding company in the United States.

Teijin’s CFRTP composite business is centered on its innovative technology for high volume
production of CFRTP components with cycle times of less than a minute, a breakthrough that
overcomes one of the biggest challenges in the automotive industry and represents a long stride
towards the increasing usage of carbon fiber in automobiles and other products. 

In December Teijin signed an agreement with General Motors to co-develop advanced carbon
fiber composite technologies for potential high-volume use in GM cars, trucks and crossovers. This
co-development will take place at the TCAC.

The opening of the TCAC marks another milestone in Teijin’s global expansion of its carbon
fiber composite business. Teijin will continue to develop markets as a global leader in the field
of carbon fiber composite products, aiming at annual sales of 150 to 200 billion yen by around
2020.

Posted April 24, 2012

Source: Teijin Ltd.

Belgium  — April 18, 2012 — The International Wool Textile Organisation (IWTO) is organizing
its 81st Congress together with the American Sheep Industry Association (ASI) in New York City, USA
on May 07-09, 2012.  

Annually IWTO coordinates a global congress which allows various forums for networking and
education for those associated with the wool industry; from wool growers to spinners, weavers,
manufacturers and retailers.  

Over 225 international leading wool industry players will be attending the Congress to
listen to respected speakers from all around the world including China, India, the US, Australia,
South Africa, Uruguay, Norway, the UK, Germany and Italy.  

The Congress programme has been carefully crafted to be both educational and challenging to
discuss new research developments and trends as well as related business and marketing strategies
in areas including online retailing and social media. The industry’s efforts on the Life Cycle
Analysis for wool will also be discussed.  

Tuesday 8 May 2012 will be dedicated to fashion retail and interior textiles. The morning
will see Woolmark and Women’s Wear Daily present a Fashion + Retail Market report on What is
Working Now and Why in the USA, speakers including Rachel Roy, Linda Fargo and more. The afternoon
session on Interior Textiles and Lifestyle organised by the Campaign for Wool will focus on how
wool is a preferred interior design solution while meeting sustainability, health and safety
expectations.  

The theme for this year’s Congress is WOOL IN THE CITY and the choice of New York as the
IWTO Congress location was an obvious one as it is the unrivalled style hub of the Americas and
home to some of the world’s most celebrated fashion and interior designers. “At the same time WOOL
IN THE CITY is also a challenge as there is not nearly enough wool being consumed within the US”
explains IWTO President Peter Ackroyd, “The wool industry has to urgently carry out its message of
being a renewable, sustainable and versatile luxury fibre to this vast market of immense
potential.”  

IWTO and ASI kindly thank their sponsors for supporting the IWTO Congress.

Posted April 24, 2012

Source: IWTO

WASHINGTON, D.C. — April 20, 2012 — Today, 65 Republican freshmen members of the U.S. House of
Representatives, led by Cong. Tom Reed (R-NY), sent a letter to House Speaker John Boehner (R-OH)
and Majority Leader Eric Cantor (R-VA) supporting the Miscellaneous Tariff Bill (MTB) process
initiated by the Committee on Ways and Means.  A copy of the freshman letter can be found at
http://waysandmeans.house.gov/UploadedFiles/GOP_Freshman_MTB_Letter.pdf.  

“Plain and simple, the MTB is a trade bill that is a job creator for U.S. manufacturing,”
said American Manufacturing Trade Action Coalition (AMTAC) Executive Auggie Tantillo.  “We
thank all of the members who signed the Reed letter,” Tantillo continued.

“The MTB creates jobs because it eliminates duties on intermediate inputs that are not
produced in the United States but are used by U.S. manufacturers,” Tantillo said.

“The MTB is a transparent process that contains important safeguards that prevents this
legislation from damaging any U.S. manufacturers.  It is vetted thoroughly to make sure that
no bills are included that cover products made in the United States.  This renders the measure
noncontroversial because no U.S. production is harmed,” Tantillo added.

“For the U.S. textile industry, the MTB is vital to reduce costs on inputs like certain
acrylic and rayon products that are no longer made in the United States.  As an example, rayon
is no longer made in the United States for environmental reasons.  Because the MTB provides
reduced cost access to that input, U.S. textile manufacturers are able to keep plants open that
make fabrics using rayon products,” Tantillo said.

The MTB is a series of bills that reduce tariffs on manufacturing inputs.  The cost to
the U.S. Treasury for any individual bill cannot exceed $500,000.  Each bill is vetted to make
sure there is no U.S. production for the input involved.  For more information about the MTB
process, see:
http://waysandmeans.house.gov/mtb/. 

Posted April 24, 2012

Source: American Manufacturing Trade Action Coalition (AMTAC)

The Fiber Year GmbH, Switzerland, and its managing director, Andreas W. Engelhardt, have announced
the upcoming release in both English and Chinese of “The Fiber Year 2012 World Survey on Textiles
& Nonwovens” on May 11, 2012, following a press conference at the Frankfurt-based
Industrievereinigung Chemiefaser e.V. The report, which has been produced for more than 50 years,
going forward will be published in cooperation with Austria-based regenerated cellulosic fiber
producer Lenzing AG.

According to a preview of the report, made available in advance of the May 11 release, 2011
global fiber usage totaled more than 51 million metric tons of man-made fibers and nearly 30
million metric tons of natural fibers. The record-high total of 81 million metric tons represents a
1-percent increase over 2010 fiber usage, and a per-capita consumption rate of nearly 12 kilograms.
Over the last three to four years, man-made-fiber usage has steadily increased, while natural fiber
usage has remained basically flat and begun to decline. The report projects a 1.9-percent decrease
in natural fibers consumption, including a decrease in cotton consumption even though cotton
production increased substantially, as well as respective 2.8-percent and 4.2-percent consumption
increases of synthetic and regenerated cellulosic fibers.

The surge in cotton prices to an all-time high of $2.4365 per pound contributed to an
overall rise in fiber prices, although the price differential with polyester has increased, giving
impetus for higher usage of polyester in place of cotton. Viscose staple fiber prices were on a par
with cotton prices, which in this case put viscose in an improved position over cotton.

Price levels have trended lower and inventory levels have been rising as a result of
concerns including the financial condition in the United States and the high debt levels of certain
European countries, but the report notes these trends have slowed significantly.

Within the man-made fiber sector, polyester has increased its market share to 73 percent,
due mainly to higher-than-average growth in filament production, particularly for carpet and
industrial filament. Cellulosics and polyamides also have gained market share, while polypropylene
and acrylic fibers have lost share. Aramid, carbon and elastane fibers are believed to have
achieved record-high levels, although they comprise a very small portion of the whole sector.

In terms of geographic sectors, China’s market share is greater than 60 percent. Other Asian
countries including Japan and Indonesia are believed to have increased production; while India,
South Korea, Taiwan and Thailand are estimated to have decreased production. Output in Europe and
the Americas also declined.

April 24, 2012

Charlotte-based Stork Prints America Inc. — the North American subsidiary of printing systems
solutions supplier Stork Prints BV, the Netherlands — has announced it is now a distributor of
Londonderry, N.H.-based Klüber Lubrication North America L.P.’s lubricants for the textile printing
and coating and graphics printing industries. Klüber Lubrication North America is the North
American subsidiary of specialty lubricants producer Klüber Lubrication München KG, Germany.

“Stork Prints is providing high-quality printing systems, printing screens and forms, spare
parts and services, and maintenance for both the textile printing and the graphics printing
industries,” said Edward Scheppink, managing director, Stork Prints America. “We feel that the
supply of high-quality lubricants and greases for capital goods will be of complimentary value for
our customers, [who] have to deal with more efficiency and at the same time with environmental
requirements. The Kluber lubricants and greases have shown to reduce wear, need fewer changes and
will contribute to higher machine utilization with less impact on the environment.”

Stork Prints notes that Klüber Lubrication offers lubricants for all of Stork’s printing
systems solutions.

April 24, 2012

The International Oeko-Tex Association, Switzerland, announced its updated criteria and limit
values for use when testing textiles for harmful substances in accordance with the Oeko-Tex®
Standard 100 product certification process are now effective.

Amendments include the following:

• Wet spun fibers and coatings now will be tested for N-methyl-pyrrolidone and Dimethylacetamide
  — which now are listed in the new category “Residual Solvents” — and must not exceed a limit
  value of 0.1 percent by mass.
• Relevant test samples must be tested for four new softening agents – Di-C6-8-branched
  Dialkylphthalate, Di-C7-11-branched Dialkylphthalate, Di-n-hexylphthalate (DHP) and
  Bis(2-methoxyethyl)phthalate — which now are included with phthalates already listed in the
  criteria — and must not exceed a total limit value of 0.1 percent by mass.
• Leather products in class IV must not exceed a limit value of 10 milligrams per kilogram of
  extractable chromium.
• In parallel with the existing ban of Alkylphenol ethoxylates (APEO) within the framework for
  certification of environmentally friendly production sites according to the Oeko-Tex Standard 1000,
  products must be tested for Nonylphenol and Octylphenol, for which they must not exceed a limit
  value of 100 parts per million (ppm); and for Nonylphenol-(1-9)-ethoxylate and
  Octylphenol-(1-2)-ethoxylate, for which they must not exceed a limit value of 1000 ppm. These
  requirements will be enforced April 1, 2013, following a one-year transition period.

In addition to the new test parameters, the association has expanded the scope of control
tests on Oeko-Tex certified products globally to cover 20 percent of all certificates issued
annually from now on, as opposed to the minimum 15 percent tested to date. Oeko-Tex also has
released a supplement to the Oeko-Tex Standard 100 on the basis of which special items such as
tents, prams, office chairs and rucksacks may be certified to the standard.

For more information about the new test criteria and regulations, contact the Oeko-Tex
Secretariat,
info@oeko-tex.com.

In commemoration of the 20th anniversary of the Oeko-Tex Standard 100 product certification
this year, the association has introduced the Oeko-Tex Sustainability Award, which beginning in
2013 it will present to businesses that have achieved outstanding performances and innovations in
sustainability. All manufacturers and retailers globally that are certified according to the
Oeko-Tex Standard 100, 1000 or 100plus may apply by submitting an application via
oeko-tex.com/sustainability.

April 24, 2012