N º 3. Cotton Product Sourcing Situation and Outlook: Cotton Apparel Orders Down in the Western Hemisphere. Review of U.S. Imports January June 2012

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September 2012, Year 13 N º 3 Cotton Product Sourcing Situation and Outlook: Cotton Apparel Orders Down in the Western Hemisphere Review of U.S. Imports January June 2012 September 14, 2012 International Development Systems Overall U.

1 September 2012, Year 13 N º 3 Cotton Product Sourcing Situation and Outlook: Cotton Apparel Orders Down in the Western Hemisphere Review of U.S. Imports January June 2012 September 14, 2012 International Development Systems Overall U.S. apparel imports are down seven percent by quantity and up two percent by value. During the first six months of 2012, U.S. cotton apparel shipments are down by both quantity and value compared to the first six months of Not one of the top twenty U.S. suppliers of cotton apparel products grew during the first six months of Overall, Western Hemisphere countries are performing slightly worse than the total U.S. imports as a result of double digit losses for fourth-ranked Honduras and fifteenth-ranked Guatemala. With the 2012 U.S. presidential elections in full swing, the candidates are not talking much about trade, but they are talking about the Western Hemisphere. Democrats boast their most recent accomplishments in the region, the signage of Free Trade Agreements with Panama and Colombia, and encourage additional opportunities to expand commerce. In his convention speech, President Obama said, I've signed trade agreements that are helping our companies sell more goods to millions of new customers, goods that are stamped with three proud words: "Made in America." 1

Meanwhile, the Republicans vow to support democratic allies in the region and create Reagan Economic Zones which are described as a multilateral trade agreement comprised of like-minded nations

2 Meanwhile, the Republicans vow to support democratic allies in the region and create Reagan Economic Zones which are described as a multilateral trade agreement comprised of like-minded nations committed to the principles of open markets and strong intellectual property protections. During his convention speech, Governor Romney also noted the importance of Free Trade Agreements, We will make trade work for America by forging new trade agreements. And when nations cheat in trade, there will be unmistakable consequences. Following is a list of the top twenty suppliers of cotton apparel to the U.S. during the first six months of 2012, along with the growth rate from January through June China remains the top U.S. supplier of cotton apparel imports, even though the imports fell by seven percent. Cotton Apparel Imports for Year-To-Date June 2012 (By Quantity) Country Market Share Growth 1 China 29.47% -7.41% 2 Bangladesh 10.27% -4.99% 3 Vietnam 9.03% -6.23% 4 India 6.17% % 5 Indonesia 5.77% % 6 Honduras 5.71% % 7 El Salvador 4.56% -8.35% 8 Mexico 4.45% -3.55% 9 Cambodia 4.31% % 10 Pakistan 4.14% % 11 Nicaragua 2.00% -6.73% 12 Sri Lanka 1.65% -6.09% 13 Thailand 1.59% % 14 Haiti 1.51% % 15 Philippines 1.49% % 16 Guatemala 1.43% % 17 Egypt 1.02% % 18 Dominican 0.84% -6.56% Republic 19 Malaysia 0.58% -9.24% 20 Costa Rica 0.45% -2.11% Major U.S. Apparel Imports from Western Hemisphere Suppliers Western Hemisphere countries continue to be a major source for U.S. imports of cotton apparel. 2

Following is a review of the most important cotton apparel imports. Cotton Knit Tops (category 338/339) U.S. total imports from January through June 2012: 184,750,785 dozen or 2.2 billion knit tops 1.

3 The Western Hemisphere supply chain remains a successful competitive strategy for making cotton apparel. Only cotton trousers and shorts lost Western Hemisphere production compared to one year ago, reflecting lower imports for Honduras and El Salvador which now rank seventeenth and eighteenth. Following is a review of the most important cotton apparel imports. Cotton Knit Tops (category 338/339) U.S. total imports from January through June 2012: 184,750,785 dozen or 2.2 billion knit tops 1. China 2. Vietnam 3. Honduras 4. Indonesia 5. Nicaragua 6. El Salvador 7. Guatemala 8. Cambodia 9. Mexico 10. India 11. Haiti 12. Pakistan 13. Bangladesh 14. Dominican Republic 15. Peru Cotton Trousers and Shorts (category 347/348) U.S. total imports from January through June 2012: 91,807,195 dozen or 1.1 billion pairs of trousers 1. China 2. Bangladesh 3. Vietnam 4. Mexico 5. Indonesia 6. Cambodia 7. Pakistan 8. Egypt 9. India 10. Nicaragua 11. Sri Lanka 12. Kenya 13. Philippines 14. Jordan 15. Lesotho 3

4 Cotton Underwear (Category 352) U.S. total imports from January through June 2012: 95,222,847 dozen or 1.1 billion pairs of underwear 1. Honduras 2. Vietnam 3. El Salvador 4. Bangladesh 5. China 6. India 7. Thailand 8. Sri Lanka 9. Costa Rica 10. Haiti 11. Dominican Republic 12. Cambodia 13. Philippines 14. Pakistan 15. Mexico 4

Mount Vernon Mills, Inc. P. O. Box 100 503 S. Main Street Mauldin, SC 29662 : +1 864 688-7100 www.mvmills.com http://www.mvmdenim.com Contact Name / Number: Mr.

David Hastings, President and CEO W. E. Duncan, Vice President and CFO E.G.

5 Mount Vernon Mills, Inc. P. O. Box S. Main Street Mauldin, SC : Contact Name / Number: Mr. Billy Havird, Vice President Merchandising Piece Dyes billyh@mvmills.com Mr. Dale McCollum, Vice President, Merchandising Denim Fabrics dalem@mvmills.com List of senior management: W. David Hastings, President and CEO W. E. Duncan, Vice President and CFO E.G. Cochrane, Vice President and Secretary Operating Division Presidents: Richard Turner- Apparel Fabrics Kent Snow- Brentex Judson Boehmer- LaFrance William Josey- Consumer Products Ed Rish- Chemicals History of company: Mount Vernon Mills, Inc. ("MVM") is a diversified and integrated manufacturer of textile and chemical products. Beginning with flour mills converted to cloth production in the 1830s in the Baltimore, Maryland area, MVM became an important producer of cotton duck and canvas fabric by the late 19th century. The company's focus shifted south in the 20th century as it expanded into ployester/cotton blends in addition to cotton fabric. As the last mills in Maryland were closed, production increased at plants in North Carolina, South Carolina, Georgia and Alabama. MVM became part of the R.B. Pamplin Corporation family in This gave MVM much more opportunity to grow, both internally and by acquisition. The 1985 purchase of Riegel Textile Corporation quadrupled MVM's revenues, and made MVM a key producer of finished apparel fabric (especially denim and piece dyed twills), consumer products and home furnishings. Pocketing, findings and related product manufacturing was added in the 1990s, firmly establishing MVM as a leading U.S. supplier to the apparel industry. MVM also retains important market share in other textile markets, such as woven paint roller fabric, table linens, and transportation fabrics. MVM now operates plants in six states in the Southeastern U.S. Largely because of its need for textile chemicals, MVM has also moved into the chemical blending and processing business. This includes dry chemicals like size, and wet chemicals such as softeners and lubricating aids. These operations are also allowing MVM to enter non-textile markets like adhesives and personal care. Products: Apparel Fabrics- denim; piece dyed fabrics (including flame retardant fabrics) for career apparel, military uniforms, sportswear and work wear Brentex- pocketing; waistbands and interlinings, greige apparel fabrics; industrial fabrics. Consumer Products- table linens; sheets and towels for hospitality market; infant bedding. LaFrance- woven paint roller fabric; fabrics for cars, trucks, buses and other vehicles; industrial fabrics Chemicals- specialty chemicals (wet and dry) for textile, personal care, paper and other industries 5

Parkdale P.O. Box 1787 Gastonia, NC 28053 Phone: (704) 874 5000 Ext. 5105 Fax: (704) 874 5176 E-mail: sales@parkdalemills.com www.parkdalemills.com Contact name/number: Mr.

6 Parkdale P.O. Box 1787 Gastonia, NC Phone: (704) Ext Fax: (704) Contact name/number: Mr. Charles Heilig, Vice President of Sales Phone: (704) Ext Fax: (704) Mr. Dan Morrison, Director of International Sales Phone: (704) Ext Fax: (704) List of senior management: Mr. W. Duke Kimbrell, Chairman of the Board Mr. Anderson D. Warlick, Vice Chairman & CEO Mr. Charles S. Heilig, President History of company: Parkdale is proud to be one of the top sales yarn spinners in the world! We are the single largest consumer of USA grown cotton; using in excess of 25,000 bales of cotton each week. We have twenty seven manufacturing facilities in the US, one in Mexico, and one in Colombia. With speed to market extremely critical in today s challenging environment, we have added distribution centers strategically located in Honduras, El Salvador, and the Dominican Republic to support our customers. Reinvesting in the latest technologies is a backbone of our rich history. Parkdale was founded in 1916 and remains committed to being an industry leader. As an industry leader we constantly investing in the latest technologies. Last year Parkdale introduced our latest investment that many have called the most efficient open end spinning plant in the World. Just another of our commitment in the latest technologies for our customers. Parkdale manufactures fine yarns using open end spinning, ring spinning, air jet and vortex spinning technologies for the knit, woven, hosiery, and industrial end uses. We produce 100% cotton, 100% polyester, cotton / polyester blends, heather blends, and tri-blend yarns. We have expanded to include many specialty fibers such as rayon, modal, acrylics, and FR rated fibers as well. We produce organic cotton and RPET polyester yarns as well and are certified by Oregon Tilth to meet the GOTS requirements. In open end yarns we offer a style spun soft OE yarn. Slub yarns in open end spinning and ring spinning as well as the latest negative slub effect in ring spinning. In Colombia, Parkdale operates an open end spinning and ring spun facility in the Rio Negro area. This facility opened in 2005 and has quickly gained an excellent reputation for supplying quality spun yarns. We have the ability to offer 100% cotton on open end spinning, 100% combed cotton on ring spinning, and a variety of specialty yarns as well. These include cotton heathers, slubs and negative slubs, and other novelty yarns as well. With the importance of speed to market, specialty development, and quality being key to our industry, Parkdale is excited about the opportunity to meet your needs. Products: 100% cotton ring spun yarns, 6/1-40/1 Ne, combed & carded 50/50 & 60/40 cvc ring spun yarns, 12/1-40/1 Ne, combed & carded 100% cotton open-end and soft spun yarns, 6/1-30/1 carded & combed 50/50 & 60/40 cvc open end yarns, 7/1 36/1 carded Air Jet yarns, 12/1-40/1 Ne, carded cotton & 100% polyester Heathers, 5/1-30/1 Ne, combed and carded OE & RS Evergreen yarns, open-end, 5/1-20/1 Ne Organic cotton yarns, 6/1-30/1 Ne, OE & RS Slub Yarns and Tri-blend Yarns Specialty fibers including modal, rayon, acrylic, and many others upon request End Products Supplied: Knitting yarns Weaving yarns Hoisery yarns Industrial Yarns Specialty Yarns 6

Tuscarora Yarns, Inc. 8760 East Franklin Street P.O. Box 218 Mt. Pleasant, NC 28124 Phone: (704) 436-6527 Fax: (704) 436-9461 www.tuscarorayarns.com Contact name/number: Mr.

7 Tuscarora Yarns, Inc East Franklin Street P.O. Box 218 Mt. Pleasant, NC Phone: (704) Fax: (704) Contact name/number: Mr. David Roberts, Chief Operating Officer Phone: (704) Fax: (704) Ms. Dee Dee Harris, Director of Marketing Telephone: (704) Fax: (704) Mr. Andy Long, Vice President of Sales Phone: (704) Fax: (704) List of senior management: Martin B. Foil, Chaiman & CEO Davis Roberts, COO Ervin Johnson, Vice President, Finance Dean R. Cobb, Executive Vice President, Manufacturing Andy Wheeley, Vice President, Product Development and Special Projects Joe McLester, Vice President, Customer Service Phil Absher, Vice President, Human Resources History of company: Tuscarora Yarns has been a reliable spun yarn source for the apparel and textile industry since Over the past 100 years the company has grown to be the largest manufacturer in the United States of cotton heather, mélange, novelty and custom-blended yarns. Both ring spun and open-end equipment are utilized to produce a very eclectic line of spun yarns with unsurpassed quality. In May of 2009, Tuscarora acquired CloverTex, LLC, a producer of premium, ring-spun yarn. The combined companies operate under the Tuscarora name, and the owner of CloverTex, David Roberts, now serves as the COO of Tuscarora. Tuscarora Yarns' motto is "Spinning the Products of Imagination". Through the experience of its creative work force and state of the art technology, Tuscarora Yarns strives to transform customers' ideas into profitable realities. Unmatched color creation and matching begin in a unique R&D facility that is set up with a mini-manufacturing center, enabling it to develop customer color submits in a matter of minutes. Orders are processed with a just-in-time attitude while maintaining the highest quality standards. Tuscarora Yarns works with a wide range of fibers to produce heathers, sophisticated mélanges, mock twists, solids and other specialty yarns. This list of fibers includes, but is not limited to, cotton, polyester, acrylic, rayon, Modal, Tencel, flax, wool and silk. Many of these can be spun in their 100% form or can be blended with one another. Yarns are offered in carded, semi-combed and "Five Star Brand" fully combed qualities. The general count range is from 4/1 to 40/1 utilizing both ring spun and open-end spinning. Plied yarns are available in the full count range and in both spinning types. Slub yarns and nub yarns are also available. Tuscarora offers package-dyed yarns, air jet spun yarns, and technical fiber yarns through partner companies. Through Tuscarora's international sales and marketing organization, business can be efficiently handled on a global scale. Tuscarora's bilingual staff has received extensive education in international sales and documentation in preparation for handling all aspects of international trade. Tuscarora also offers package dyed, specialty synthetic and recycled cotton yarns through partner companies. Products: 100% Cotton Heather and Melange Yarn, Ring Spun and Open End, 4-40 Ne, Single and Plied. Cotton and Polyester Blended Heather Yarns, Ring Spun and Open End, 4-40 Ne, Single and Plied. Cotton and Rayon Blended Heather Yarns including Micro-Modal, Modal and Tencel, Ring Spun and Open End, 4-40 Ne, Single and Plied. Cotton and Acrylic Blended Heather Yarns, Ring Spun and Open End, 4-40 Ne, Single and Plied. 100% Polyester Heathers, Ring Spun and Open End, 4-40 Ne, Single and Plied. 100% Rayon Heathers, Ring Spun and Open End, 4-40 Ne, Single and Plied Mock Twist Yarns, 100% Cotton, Acrylic, Polyester, Rayon and Blends, Ring Spun, 6-30 Ne. Mock Twist for Piece Dye, Natural Cotton/Polyester and natural Cotton/Solution Dyed Color, Ring Spun, 6-30 Ne. 100% Solution Dyed Acrylic Sunblock Yarns, Open End 4-24 Ne, Single and Plied Remade Recycled Yarns For Upholstery End Use, Open End 3-18 Ne, Single and Plied Alternative Blends with Flax Silk or Wool, Ring Spun, 4-18 Ne, Single and Plied 100% Cotton Solid Color Yarn, Open End, 4-24 Ne, Single and Plied Remove 100% Cotton Solid Color Yarn Products of Special Interests: Original Vintage Streaky Triblend Yarn Patented "Five Star Brand" 100% Combed Cotton Heather Yarn Bamboo Fiber in Natural and Heathers "Excite" Multi-Colored Sophisticated Melange Yarn Retrospun Heather Yarn "Trifecta Colletion" Economy Heather Line. 50/25/25 Acrylic/Cotton/Polyester Blend "Moxie" Piece Dye Mock Twist Yarn "Shantung" Striated Colored Slub/Nub Yarn in Cotton and Cotton/Polyester Blend Anti-Microbial Yarns. Recycled Polyester Yarn. ProTura modified cotton with unique dye capabilities End Products Supplied: Knit and Woven Apparel Home Fashions Upholstery Industrial Fabrics 7

Zagis USA 1017 Saint John Street Lafayette, LA 70501 Telephone: (337) 261-0701 Fax: (337) 261-0732 Contact Name / Number: Steve Johnston, Director of Marketing Office: (337) 281-9871 Fax: (205)

8 Zagis USA 1017 Saint John Street Lafayette, LA Telephone: (337) Fax: (337) Contact Name / Number: Steve Johnston, Director of Marketing Office: (337) Fax: (205) sjohnston@zagisusa.com Don Cassell, Director of Sales Office: (865) Fax: (865) dcassell@zagisusa.com List of senior management: Salomon Zaga Kalach, Chairman of the Board Rafael Zaga Saba, Secretary-Treasurer Daniel Feibus, President & CEO History of company: Transportation time and costs, critical factors in the supply chain, were an integral part of Zagis decision to build its plant in Louisiana. Zagis USA is located near the heart of the cotton belt. Located on Interstate 10, this location has the closest proximity to several major ports along the coast of the Gulf of Mexico. Zagis USA has assembled an experience team to compliment its capital investment and ensure that its customers will be provided with unsurpassed quality and service. Products: 100% cotton open end spun yarns End Products Supplied: Circular Knits Hosiery Weaving Industrial Medical Zagis was founded in Mexico in 1980 and today is the leader in natural and synthetic textile fiber spinning in Latin America. Since its foundation as a family company, Zagis has been managed with clear objectives to maintain a professional level and a high quality product through the use of the latest technology. Continuing its commitment to these objectives, Zagis USA was formed in Louisiana in 2007 to build the most modern open end spinning plant in the world. The first plant started at full production in 2009 producing the highest quality 100% cotton open end yarn incorporating only state-of-the-art technology. 8

U.S. and World Cotton Economic Outlook September 2012 August 1 marks the beginning of the new crop year with regards to USDA s statistical reporting. The new U.S. crop, estimated currently at 17.

9 U.S. and World Cotton Economic Outlook September 2012 August 1 marks the beginning of the new crop year with regards to USDA s statistical reporting. The new U.S. crop, estimated currently at 17.1 million bales, 1.54 million bales more than the previous year. U.S. offtake is expected to be 15.2 million bales, which will increase stocks to 5.3 million bales a 34.9% stocks to use ratio. USDA has estimated supply and demand forecast for both the U.S. and the world for the crop year. It is compared with the previous year s crop in the tables below. U.S. Cotton Fiber Supply/Demand Beginning Stocks Production Domestic Consumption Exports Ending Stocks Source: USDA 9

Looking at the world totals, USDA estimates give a crop of 114 million bales, 10.2 million bales below the 2011 crop of 124.2 million bales. Consumption estimates of 107.

10 Looking at the world totals, USDA estimates give a crop of 114 million bales, 10.2 million bales below the 2011 crop of million bales. Consumption estimates of million bales are below production, adding 6.4 million bales to world stock levels and increasing stocks to 76.5 million bales a 71.1% stocks to use ratio. Suministro/Demanda de Fibra de Algodón a nivel Mundial Beginning Stocks Production Consumption Ending Stocks China s cotton production in is estimated at 31.0 million bales, down from 33.5 million in Consumption in China is estimated at 38.0 million bales, down from 39.0 million in in India s cotton production in is estimated at 24.5 million bales, down from 27.5 million in Consumption in India is estimated at 21.5 million bales as compared to 20.1 million in

11 11

COTTON COUNCIL INTERNATIONAL HEADQUARTERS & LATIN AMERICA 1521 New Hampshire

483-4040 Vaughn Jordan, International Program Director Email: vjordan@cotton.

Rica Phone: (506) 2288-2626 / 2289-8680 Fax: (506) 2289-5124 Floribeth

Email: floribeth@cotton-cr.com ANDEAN OFFICE: Cra. 14 No.

1-623-3076 Nina Maldonado, Regional Manager, Andean Region Email:

com KOREAN OFFICE: Leema Building, Suite 303, 146-1 Soosong-Dong, Chongro-Ku

Won-Jung Choi, Program Manager Email: wchoi@cotton.

12 COTTON COUNCIL INTERNATIONAL HEADQUARTERS & LATIN AMERICA 1521 New Hampshire Avenue, NW Washington, DC 20036, USA Phone: (202) Fax: (202) Vaughn Jordan, International Program Director CBI OFFICE: C.C. Plaza Colonial Oficina 1-11A, San Rafael de Escazú, San José, Costa Rica Phone: (506) / Fax: (506) Floribeth González-Schuyler Regional Manager, México, Central America & The Caribbean floribeth@cotton-cr.com ANDEAN OFFICE: Cra. 14 No. 94A-44 Office 402 Bogota, Colombia Phone: (57) Fax: (57) Nina Maldonado, Regional Manager, Andean Region nina@cottonusaandean.com KOREAN OFFICE: Leema Building, Suite 303, Soosong-Dong, Chongro-Ku Seoul , Korea Phone: ( ) /2 Fax: ( ) Won-Jung Choi, Program Manager wchoi@cotton.org COTTON INCORPORATED HEAD OFFICE 6399 Weston Parkway Cary, NC 27513, USA Phone: (919) Fax: (919) LATIN AMERICA OFFICE: Av. Insurgentes Sur C Mexico, DF, Mexico Phone: (52-55) Fax: (52-55) Jaime Flores, Director, Supply Chain Marketing Latin America Global Account Management Group jflores@cottoninc.com

Nº 4. Planning For Holiday Diciembre 2011, Año12. Kim Kitchings, Cotton Incorporated. Planning For The Season

Nº 4. Planning For Holiday Diciembre 2011, Año12. Kim Kitchings, Cotton Incorporated. Planning For The Season Nº 4 Diciembre 2011, Año12 Planning For Holiday 2011 Kim Kitchings, Cotton Incorporated After a fairly positive back-to-school season, retail is entering into the holidays with pressures across the supply