Cotton is a new crop for Western Bahia. Although a few farmers experimented with cotton in the early 1990s, the first officially recorded production was in 1995/96 when 2,400ha were planted. After that, planted area expanded rapidly, growing to 40,000ha in 1999/2000 and to 277,000ha in 2006/2007. Western Bahia now accounts for more than 30 percent of Brazil's total cotton output and is expected to become even more important in the nation's cotton industry in the near future.

Cotton production in Western Bahia increased for several reasons. First, it has been a very profitable crop--the region's most profitable field crop. Second, the regions's natural conditions are ideal for the production of high yielding and high quality cotton. Third, the region has a favorable geographic position relative to domestic and international markets--the textile mills of Northeast Brazil and foreign consumers via nearby Atlantic ports. Fourth, the parallel development of the region's physical and institutional infrastructure has provided excellent support for the industry.

Cotton in Western Bahia is often referred to as the "rich farmer's crop." Production cost for cotton grown with state-of-the-art technology is roughly four times that of soybeans and about double that of corn. As there are few sources of production credit, only a relatively few well capitalized farmers have access to sufficient resources to grow cotton.

Not only is the production cost high, soil preparation for cotton is also capital demanding. With its deep tap root, cotton thrives under conditions where soil nutrients are abundant and available at soil depths of up to two meters. Cotton requires better soil fertility than soybeans and plant nutrients need to be deeper in the soil profile. On rainfed land, cotton is usually not planted until the fourth to sixth year after opening virgin cerrado. In addition to normal limestone and gypsum applications, a ton or two each of limestone and gypsum must be applied annually to obtain top yields.

Farmers who have the necessary resources to grow cotton using state-of-the-art production and soil management techniques reap outstanding returns. Farmers have sometimes doubled returns to their production cost outlays in recent years. Cotton is an expensive crop to produce but it has been a very profitable crop for Western Bahian farmers.

Western Bahia's natural conditions contribute to cotton that is high yielding and high quality. The crop is typically planted in late November/early December to take advantage of the rainy season that normally starts in mid to late October and ends in mid to late March. Cotton grows throughout the rainy season and bolls begin to open at the start of the dry season.

During the dry season, cotton in the boll-opening and open boll stages is rarely subject to rainfall. The fiber is rarely wet thus quality is excellent. The 6-month dry season permits a three to four month harvest window starting mid May and ending late August (by law, cotton stubble must be plowed down by 31 August to control boll weevil). It is always dry during harvest and with the wide harvest window farmers are able to make efficient use of costly mechanical cotton pickers. In the Western Bahia region, the average cotton picker picks 1,000 to 1,500ha/season (2,500 to 3,750 acres). Cotton is picked and compressed into modules that often remain in the fields for several weeks before being hauled to local gins. Long "trains" of cotton modules are a common sight in the region's fields from May through September.

Coupled with ideal climatic conditions--abundant rainfall, high solar energy, and cool nights during the growing season--the region's permeable soils permit the cotton tap root to penetrate to depths of two meters or more. This is especially important given that veranicos (a dry spell during the rainy season) are not uncommon. Under state-of-the-art soil fertility management, cotton can withstand several weeks of dry weather without yield reduction.

Cotton yields have steadily increased over the past ten years as producers and local agronomists learn more about the crop. Today, top producers expect yields of 280 to 320 arrobas (3.0 to 3.5 bales/acre equivalent) on rainfed land. On irrigated land, yields of 400 arrobas or more (4.4 bales/acre equivalent) are common. These are exceptional yields anywhere in the world, but commonplace in Western Bahia.

Western Bahia's cotton production could not have grown without parallel growth of supporting infrastructure. The number of gins has expanded with cotton production and there are now dozens located throughout the area. Most of the gins are relatively small and have been moved from the former cotton areas of the state of Minas Gerais. Specialized machinery for cotton is widely available locally. The John Deere and Case-IH dealers sell new cotton pickers imported from the US and they along with many smaller machinery dealers sell a complete line of equipment used in the industry. Numerous input supply firms in the region provide the agricultural chemicals, pesticides and fertilizers used in cotton production and there are many aerial crop sprayers available to provide custom services as needed.

Markets

The high quality of the region's cotton commands premium prices in domestic and international markets. Brazil is currently a new importer of cotton and the textile mills of Northeast Brazil comprise the most important domestic market for Western Bahia cotton. A growing share of the region's cotton is sold to international buyers. Most passes through the hands of brokers and intermediaries, but a number of the region's larger producers avoid middlemen and sell directly to textile mills in Asia and Europe.

As Western Bahia's planted area of cotton doubles and re-doubles, the region is growing "whiter" each year. Capital is the only impediment to it turning completely "white." Most of the region's farmers are chronically undercapitalized and do not have access to the capital required to produce cotton. A few well capitalized farmers are increasingly dominating production via buy-outs of their undercapitalized neighbors. However, not all of the area expansion is by Western Bahia cotton farms growing larger. Many growers from Mato Grosso and other areas of Brazil are transferring operations to Western Bahia. Foreign investors are also moving investment capital into Bahian cotton production. They, along with many others, believe that Bahia will soon become Brazil's most important cotton producing state.