July 5, 2013
United States cotton trading company, Omnicotton, has established a new base in the Asian region with the opening of its first Australian office in the Brisbane suburb of Paddington. Omnicotton is an 11-year-old company founded in Dallas, Texas, by Raymond Faus who used to be the chief executive officer for Ecom Cotton.
Until now it has traded United States, Brazilian and a little Argentinian cotton but is looking to expand into the Australian and Asian markets. The new office has been set up by Cliff White who spent 21 years with Queensland Cotton in Australia and the United States and has returned to Australia as general manager of Omnicotton’s new office.
“The opportunity came along to come back to Brisbane and set up the company and start operations with the 2013 crop,” he said. “Omnicotton’s business will now be very much based on Australia, the US and Brazil – the main growth that mills want to buy.”
Mr White said the Brisbane office would be trading cotton into Australia’s traditional Asian markets such as China, Indonesia and Thailand. “Australia’s position in terms of proximity to the main Asian markets and our shipping period being offset to the Northern Hemisphere shipping period are big advantages,” he said. “So too are our reliability, the quality of our cotton and the short shipment period which is very important when mills are looking at their cash flow. “They want just-in-time delivery.” Mr White said the Australian cotton industry and the US industry were very different.
His time in the US had been an opportunity to learn about the US farm program and the political influences on the industry there. He said cotton quality in the US ranged from low grades to the very best, unlike Australia where it was all premium cotton. “The US is a diverse and well established market, and it is the world’s largest exporter,” he said.