In 2024, AmeriBangla set out to answer a critical trade question…
Why does the United States — the world’s second-largest cotton exporter — have such limited share in the cotton import market of Bangladesh, the world’s largest cotton importer?
The issue was not quality. American cotton is widely regarded in Bangladesh for its strength, brightness, cleanliness, and consistency. Nor was it pricing. Spinning mills in Bangladesh are prepared to pay for high-quality raw materials, particularly when the reduction in waste offsets initial costs.
The true barrier is structural. The global cotton trade operates on a 200-year-old merchant system—one that suppresses prices paid to American farmers while charging inflated rates to buyers in Bangladesh. Merchants maximize margins by channeling lower-grade cotton from West Africa, Brazil, or India, where price opacity allows for greater markups.
American cotton, by contrast, is priced transparently through the ICE futures market, which undermines the merchant model. As a result, major merchants have a financial disincentive to promote American-origin cotton in Bangladesh.
AmeriBangla removes the legacy merchant system from the U.S.–Bangladesh cotton trade.
Our cotton is purchased directly from U.S. growers — primarily medium-to-large independent farmers —and sold directly to composite and spinning mills in Bangladesh.
The business model is designed around low operating margins, long-term contracts, and alignment of economic interests. By eliminating unnecessary intermediaries, AmeriBangla reduces costs and enables mills to procure higher-quality input at more competitive rates.
Additionally, AmeriBangla offers an industry-first service: free U.S. market representation for partner mills. Through outreach efforts in New York, Los Angeles, and Washington, AmeriBangla promotes garments made from American cotton to major brands and buyers, supporting demand growth for partner exports. This, in turn, increases demand for U.S. cotton—a closed-loop system where all stakeholders benefit.
American cotton is the gold standard.
Known for its strength, brightness, and cleanliness, it consistently delivers higher yields in both yarn and fabric production. Uniformity of staple length and low foreign matter levels reduce machine stoppage and waste, increasing operational efficiency across the mill.
Unlike many origin markets, U.S. cotton is priced transparently on the ICE Futures exchange, enabling predictable procurement and hedging. Additionally, American cotton benefits from growing consumer recognition in key garment markets, particularly the United States and Europe, where traceable supply chains and origin labeling are valued by retailers and end customers alike.
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