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Economic Potential for Cotton Utilization in Alternative ECONOMIC POTENTIAL FOR COTTON UTILIZATION IN ALTERNATIVE NONWOVEN TEXTILE TECHNOLOGIES by Kishor Prasad Luitel, B.S. A Thesis In AGRICULTURAL AND APPLIED ECONOMICS Submitted to the Graduate Faculty of Texas Tech University in Partial Fulfillment of the Requirements for the Degree of MASTER OF SCIENCE Approved Darren Hudson Chair of Committee Dean Ethridge Benaissa Chidmi Peggy Gordon Miller Dean of the Graduate School August, 2012 Copyright 2012, Kishor Prasad Luitel Texas Tech University, Kishor P. Luitel, August 2012 ACKNOWLEDGMENTS For the completion of this research at various stages, a number of people and institutes have given invaluable assistance and suggestions. In this regard, I owe a debt of gratitude to all of those who supported me. First and foremost, I would like to thank Dr. Darren Hudson, chair of my committee, and Dr. Dean Ethridge, a member of my committee, for their valuable time, insightful guidance that they both in their special way put into this research. I am very grateful for the opportunity that I had of working and learning from these dedicated and supportive professors. I would like to thank Dr. Benaissa Chidmi, my other committee member, for his valuable comments and suggestions, which helped me complete my thesis work. My special thanks go to David Strack, for helping me prepare the questionnaire. I would also like to pay my sincere gratitude to Rodman publishing for conducting the survey and to the respondents of the survey, which provided me the essential data for this study. I would like to acknowledge, Summer Dissertation/Thesis Research Award from the Texas Tech Graduate School, which helped me financially to write this thesis. I remain thankful to faculty and staff of the Department of Agricultural and Applied Economics, my colleagues and friends, for their encouragement and moral support during my Masters studies at Texas Tech University. ii Texas Tech University, Kishor P. Luitel, August 2012 TABLE OF CONTENTS ACKNOWLEDGMENTS............................................................................................. ii ABSTRACT...................................................................................................................v LIST OF TABLES....................................................................................................... vi LIST OF FIGURES..................................................................................................... ix CHAPTER I INTRODUCTION .......................................................................................................1 General Problem ..........................................................................................................1 Objectives ....................................................................................................................7 II BACKGROUND ON COTTON IN NONWOVEN PRODUCTS .............................8 Fibers for Nonwoven Products .....................................................................................8 Nonwoven Technology ................................................................................................9 Nonwoven Products ................................................................................................... 14 Previous Studies and Cotton Utilization in Nonwovens .............................................. 16 III METHODS AND PROCEDURES ......................................................................... 19 Survey Design and Structure ...................................................................................... 19 Survey Administration ............................................................................................... 22 Willingness to Pay ..................................................................................................... 22 IV RESULTS AND DISCUSSIONS ............................................................................ 25 Response Rate from the Survey ................................................................................. 25 Responses for Nonwoven Products and Technology from End Products Manufacturers ............................................................................................................ 27 Responses for Substitutes Among all Manufacturers .................................................. 30 Responses for Reasons to Use Cotton from Current Cotton Using Firms .................... 31 Responses to Reasons for Stop Use Cotton from Formerly Cotton Using Firms ......... 32 Responses to Reasons for not Using Cotton from Non-Cotton Using Firms ............... 33 Willingness to Pay (WTP) ......................................................................................... 34 Discussion ................................................................................................................. 35 V CONCLUSION ........................................................................................................ 39 Conclusion................................................................................................................. 39 REFERENCES ............................................................................................................ 40 iii Texas Tech University, Kishor P. Luitel, August 2012 A. FLOW-CHART OF THE QUESTIONNAIRE ........................................................... 46 B. QUESTIONNAIRES FOR NONWOVEN TEXTILE FIRMS ................................... 49 C. RESPONSES FROM TOTAL NUMBER OF SURVEYS ......................................... 62 D. SEPARATE RESPONSES FROM ROLL GOODS MANUFACTURERS AND END-PRODUCT MANUFACTURERS ....................... 65 E. INSTITUTIONAL REVIEW BOARD (IRB) EXEMPTION ................................... 78 iv Texas Tech University, Kishor P. Luitel, August 2012 ABSTRACT Cotton fiber is one of the most widely used fibers in the textile industry. In the U.S., despite increases in exports and production, the decline in domestic use of cotton has been the cause for some concern in the cotton industry. The use of synthetic fiber is increasing, replacing cotton fiber in textile industry. Nonwovens are the fastest growing sector of the textile industry. Nonwovens are engineered fabrics that are a combination of traditional textiles, paper and plastic. Nonwoven textile products are largely found in products related to hygiene, medical/surgical products, wipes, filters, shoes, in coating/laminated substrates, electronics, automotive textiles, geotextiles, furnishing and bedding, construction, padding and others. This study focuses on evaluating the economic potential for cotton fiber in nonwoven textiles by analyzing the nonwoven products and technologies that could use cotton and examines the price sensitivity of cotton compared with its substitute fibers. Data was collected through an online survey conducted among the nonwoven products producing firms. The study shows that cotton has prospect in the production of absorbent and hygienic, medical/surgical and health care, personal care and wipes products. It is technically feasible to use cotton in nonwoven textiles but economics is the limitation, in terms of price, volatility in price, and processing cost for impurities on the cotton fiber. The price of cotton fiber is not sensitive to its substitute fibers except for acrylic fiber. The cotton using firms are willing to pay a little more to use cotton than non-cotton using firms, compared to substitute fibers of cotton. v Texas Tech University, Kishor P. Luitel, August 2012 LIST OF TABLES 2.1 Strengths and weakness of cotton fiber in nonwovens ................................................9 2.2 Nonwoven technologies that could be used in different type of cotton fibers ............ 14 2.3 Cotton based nonwoven products ............................................................................. 16 4.1 Firms response regarding cotton use status ............................................................... 26 4.2 Response for fiber used in production of nonwoven products from total survey ....... 27 4.3 End-product manufacturing firm’s response for nonwoven products ........................ 28 4.4 End-product manufacturers response for web formation technology ......................... 29 4.5 End-product manufacturers response for web bonding technology ........................... 30 4.6 Total survey response for substitute fiber ................................................................. 30 4.7 Ranked response regarding reason for using cotton from cotton using firms ............. 31 4.8 Ranked response from formerly cotton using firms regarding reason for stopping use of cotton ............................................................................................ 32 4.9 Ranked response regarding reason for not using cotton from non-cotton using firms ............................................................................................................. 33 4.10 Descriptive statistics of variables ........................................................................... 34 4.11 Estimation of WTP result (dependent variable=willingness to pay) ........................ 35 C.1 Responses regarding future prospect of cotton use from cotton using firms ............. 62 C.2 Responses regarding reason for increase of cotton percentage in future from cotton using firms .................................................................................................. 62 C.3 Responses regarding reason for decrease of cotton percentage in future from cotton using
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