Introduction:

Managing cotton is an interdependent job. It is not only the farmers who mange the cotton, rather it is the whole value chain of cotton from farmers, ginners, merchants, agents, spinning mills, knitting and woven mills, dyeing and finishing mills, readymade garments, brands and retailers, to end customers.

Again there are many supporting and interlinked functions and entities that exists like; scientists, researchers, Government bodies, NGOs, agriculturists, trainers, different sustainable initiatives, civil society, seed companies, fertilizer companies, chemical companies, transport, warehousing and logistic companies, insurance, financial institutions, risk management consultants, experts, media, etc.

Our discussion would be confined to cotton spinning mills only. While managing cotton a spinning mill can encounter two types of risks;

1. A) Controllable/Unsystematic Risk and
2. B) Uncontrollable/Systematic/Market Risk.

When we talk about managing risk on cotton, we basically talk about the risk that can be minimized, called Controllable risk. A spinning mill can manage cotton well if the following major jobs are addressed methodologically:

1. Choice of Cotton
2. Cotton Flow Chart, followed by a comprehensive and dynamic cotton management plan
3. Addressing unexpected situations and
4. Price Fixation and Risk Management

Detailed course outline & schedule:

Day-01: 06^th July, 2018 (Friday), 9.30 AM to 5.00 PM

Topic-1: Choice of cotton.

This is the starting point of cotton management for a spinning mill. Here we would discuss on how a spinning mill can select the right cotton for his process. We would like to discuss the following issues: –

• Technical parameters of cotton (Grade, Length, Microniare, Strength, etc.
• Use of HVI and AFIS to assess cotton and process
• Different spinning process (Ring, rotor and air jet) and relationship of cotton parameter with it
• Contamination, stickiness
• Growth wise characteristics and choice of cotton
• Sustainable cotton: organic, Better Cotton Initiative (BCI), Cotton made in Africa (CmiA), MyBMP, LEEDS, SUPIMA, FAIR TRADE (FT)

Topic-2: Cotton flow chart & a comprehensive cotton management plan.

Once right cotton has been selected for a mill, it must have a comprehensive and dynamic cotton management plan. We would like to discuss the following issues: –

• Cotton Flow Chart
• Cotton management team
• Role of cotton procurement department
• Choice of right supplier
• Role of quality assurance department
• Role of production department
• Role of commercial department
• Role of finance department
• Role of store department
• Role of HR & Compliance department
• Short or excess weight
• Quality issues on cotton and how to manage gap
• Evaluation of each raw cotton consignments based on quality, timely shipment and other parameters
• Annual evaluation of vendors
• ICA (International Cotton Association) and importance of adhering to the rules and regulations.

Day-02: 7^th July, 2018 (Saturday), 4.00 PM to 8.00 PM

Topic-3: Price fixation & risk minimization.

Here we would try to understand how cotton price is fixed. We would try to understand the nature of cotton price and its determinants and how risk minimization is possible: –

• ICE (International Cotton Exchange)
• Basis
• Price
• Fixed price
• On call purchase
• Fixation of price of on call procurement
• When is fixed price better than on call?
• When is on call better than fixed price?
• Fundamental Analysis
• Technical Analysis
• Risk Appetite
• Hedging with options (Put/Call)

Topic-4: An over view on managing cotton.

Here we would recap the whole process of managing cotton that was discussed in Topic 1, 2 and 3:

• Choice of cotton
• Cotton flow chart & a comprehensive cotton management plan &
• Price fixation & risk minimization

Who Should Attend?

• COO, CFO and Unit heads
• Decision makers who are involved with the cotton procurement and cotton supply chain
• Factory Heads, Quality Heads, Production Heads
• Raw cotton agents, Financial Institutions, Students

Total Course Fee:

BDT 9,990/- (Nine Thousand Nine Hundred Ninety Taka Only).
** TTH Alumni will get special discount.
** 2 or more participants from one organization will get 20% discount.

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