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ICAC projects steady global

cotton production and consumption

for 2025–26

The International Cotton Advisory Committee (ICAC) has released its projections for the 2025–26 cotton
season, forecasting global cotton production to reach about 26 million tonnes and consumption around
25.7 million tonnes. This indicates a balanced market with a slight surplus in production.

Regionally, production is expected to increase in Brazil, the United States, and West Africa. However, these
gains may be offset by a small decline in China’s cotton output, which is projected at around 6.3 million
tonnes. Despite China’s record cotton yield of 2,257 kilograms per hectare in the current season, its G7 to jointly boost AI adoption in
production is expected to decrease slightly in 2025–26.

Global cotton trade is forecast to rise by 2%, reaching approximately 9.65 million tonnes. This increase is public sector and support SMEs
driven by higher stocks from the current season combined with expected mill demand. Nevertheless,
international trade agreements and tariffs could influence the trade outlook for the upcoming season. The The Group of Seven (G7) nations—Canada, France, Germany, Italy, Japan, the United Kingdom, and the
ICAC’s price forecast for 2025–26 ranges from 56 to 95 cents per pound, with a midpoint estimate of 73 United States—have unveiled a comprehensive plan to enhance the adoption of artificial intelligence (AI)
cents. This range reflects uncertainties surrounding supply and demand factors worldwide. Overall, the across both public institutions and small-to-medium enterprises (SMEs). Announced at the G7 Industry,
ICAC’s projections suggest a stable global cotton market for 2025–26, characterized by balanced Technology and Digital Ministerial meeting held in Verona and Trento, Italy, the initiative underscores the
production and consumption, moderate trade growth, and steady price expectations.
shared goal of deploying AI in a safe, secure, and trustworthy manner.

A central feature of the initiative is the release of a joint G7 report later this year, which will assess the key
drivers, opportunities, and barriers to AI adoption by SMEs. The report will also compare existing national
strategies, identify effective practices, and suggest pathways for collaboration between governments and
businesses. By equipping SMEs with insights and guidance, the G7 aims to democratize access to AI and
ensure smaller players can remain competitive in a rapidly evolving global economy.
Hohenstein releases 2024 On the public sector front, the G7 will develop a dedicated AI toolkit. Crafted in partnership with the OECD

sustainability report, and UNESCO, this toolkit will translate high-level ethical principles into tangible policy recommendations. The
goal is to assist public administrations in setting clear goals for AI, fostering user involvement, navigating
sets 2025 goals institutional silos, and improving data governance. The toolkit encourages gradual AI integration, minimizing
disruption while building public trust.

In addition to domestic strategies, the declaration highlights global cooperation on advancing critical digital
Hohenstein has published its 2024 Sustainability Report outlining key achievements and plans for 2025. The technologies. This includes support for innovation in quantum computing, sustainable semiconductor
report highlights environmental, social, and corporate governance efforts across its global locations. On the manufacturing, and the protection of digital infrastructure. The G7 also reaffirmed commitment to the
environmental front, Hohenstein installed a combined heat and power plant and photovoltaic system at its Hiroshima AI Process, which promotes responsible AI development and international
German headquarters. code-of-conduct alignment.

It also recorded its greenhouse gas emissions (Scope 1, 2, and 3) globally for the first time. An Importantly, the G7 aims to extend these benefits to developing nations through partnerships that close the
environmental team and officer were appointed to implement the Eco-Management and Audit Scheme digital divide, uphold labor rights, and enable equitable growth in AI-related industries. These actions reflect
(EMAS). Using this data, the company will set reduction targets and further improve sustainability. Socially, a recognition that inclusive AI progress requires global engagement.
an internal employee survey showed 85% satisfaction with Hohenstein as an employer. The company has
acted on many employee suggestions to improve workplace conditions. Focus remains on work-life balance UK Science Minister Michelle Donelan praised the initiative, emphasizing AI’s transformative potential. She
and transparent communication with staff worldwide. noted that responsible adoption can elevate productivity, improve services, and create new economic
opportunities if implemented carefully and cooperatively.
CEO Dr. Stefan Droste emphasized the importance of environmental responsibility amid rising extreme
weather events. Hohenstein aims to maintain its sustainability commitment and assist clients The G7’s multi-pronged approach—combining regulation, tools, and collaboration—sets the stage for
with evolving regulations. shaping AI’s future in a way that balances innovation with inclusion and governance.

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