The Financial Crisis - Effect on Operations
The financial crisis in Q4 2008 brought about a drop in international markets and set off the global recession
Recession meant lower demand, lower production and lower prices
Cotton prices declined sharply as is exhibited below by the Cotton A Index:
Lower cotton prices Less incentive to plant and harvest Lower cotton crop Less cotton trade and ginning
Demand for yarn, fabric and garments declined dramatically especially in export markets
Economic recession Lower consumer demand Lower demand for yarn and garments Less retail business
Despite the adverse effect of the crisis, the Group, on the whole, has managed to remain profitable Additionally, global demand has begun to shift upwards again
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