Cotton Division Mission. Organizational Structure. Overview of the USDA Cotton Classification Program. Mission & Function Areas of the Cotton Division

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Overview of the USDA Classification Program Division Mission To promote the efficient marketing of U.S. cotton, domestically and internationally, by providing unbiased classification, standardization, market news, and oversight of the cotton research and promotion programs. Organizational Structure USDA, Division Organizational Structure Secretary of Agriculture Marketing and Regulatory Programs Division Agricultural Marketing Service (AMS) Animal, Plant, and Health Inspection Service (APHIS) Grain Inspection, Packaging and Stockyards Association (GIPSA) & Tobacco Programs Grading Standardization & Engineering Quality Assurance Market News Information Technology Staff Research & Promotion Staff Administrative Staff Division Tobacco Division Division Locations Mission & Function Areas of the Division Washington Headquarters Memphis Field Headquarters / Classing Office Classing Facilities (10 currently) 1

USDA Classification & Standardization Programs: Classification Program: Provides HVI and manual cotton classification on every bale of cotton produced in the U.S. Standardization Program: Develops, maintains and provides internationally accepted cotton classification standards to USDA classification program & other cotton testers throughout the world. USDA Classification System: Every individual bale of cotton produced in U.S. is HVI classed by USDA. All USDA cotton classification is based on the Universal Standards. All USDA cotton classification is performed utilizing exactly the same procedures and standards in all USDA cotton classing locations. HVI data is available from USDA on every bale produced in the U.S. Function Areas of Division Grading Standardization & Engineering Quality Assurance Information Technology Staff Market News Research & Promotion Staff Administrative Staff USDA Classification The Classification Process Production & Modules The Classification Process Bale Sampling: 2

The Classification Process Fiber Properties Classified Receiving Traying Conditioning By High Volume Instrument By USDA Certified Classer Data Dissemination Classing Instrument Testing Official Color Grade Rd Degree of Brightness +b Degree of Color Trash Percent Area Non-Lint Micronaire Fineness of Fibers Length Upper Half Mean (UHM) Length Uniformity Uniformity of fiber Lengths Strength Grams per Tex Official Leaf Grade Determined in Accordance with Universal Grade Standards Extraneous Matter Determination HVI High Volume Instrument Uster 1000 HVI 1000 s by Year Model in USDA Classification Service Color & Trash Micronaire Length Strength Uniformity Year # 2004 40 2005 50 2006 48 2007 40 2008 30 2009 20 2010 10 Total: 238 USDA National Database (NDB) USDA National Database (NDB) System for storing all USDA cotton classification data Housed in Memphis, Tennessee Data from all USDA cotton classing facilities are stored in the NDB 3

Classification Data Distribution Manufacturers Other Gov t Agencies Merchants Abilene Corpus Christi USDA National Database Visalia Rayville Quality Assurance Dumas Memphis, TN Memphis Florence Lamesa Lubbock Macon Quality Assurance Ensure Adherence to Standards Administer check program to ensure consistency of all instruments and offices throughout Program Provide data feedback to offices on a daily basis Oversee and conduct classification of cotton delivered on the U.S. Futures Market Quality Assurance Check Lot Program Original Test Data 10 Classing Office Labs 1% of All Classification Samples (random sampling) Quality Assurance Lab in Memphis, Tennessee Retests samples Retested Data Results Universal Standards for HVI Testing Standardization Micronaire Strength, Length, Uniformity Index Procedures Rd/+b Color Trash 4

Universal Standards for HVI Testing Includes both physical calibration standards and HVI testing procedures Internationally accepted Maintained, produced and distributed by USDA Governed by the International Industry Universal Standards governed by the Agreement Agreement between USDA, U.S. Industry & 23 Foreign Signatory Associations from 21 countries Provides delegates with a voice in governing the Universal Standards Bangladesh Korea Bangladesh Mills Association Spinners & Weavers Association of Korea Belgium Malaysia Association Contonniére Malaysia De Belgique Manufacturing Association Brazil Mexico Bolsa Mercadorias Camara de e Futuros National de la Industria Textil Britain Peru Council British Comite of s Textil de la Sociedad National de Industria The Liverpool Association Ltd Philippines Egypt Mills Association of the Philippines Alexandria Exporters Association Poland France Gdynia Association Association Francaise Spain Cotonniere Germany Centro Algodonero Nacional Bremer Baumwollbörse Switzerland Indonesia Industrieverband Indonesia Spinners Association China (Taiwan) India Taiwan Spinners Association East India Association Ltd Thailand Italy Thai Manufacturing Association Associazione Cotoniera Japan Japan Arbitration Institute Japan Trade s Association Japan Spinners Association The Universal Standards Used by Over 50 Countries Worldwide Major Users: Australia China France Uzbekistan India England Indonesia Japan Spain Thailand Korea Italy Turkey S. Africa Switzerland Greece Pakistan USA Brazil Israel Zimbabwe Portugal Argentina Ghana 20,000 kg of for Calibrating HVI Length, Strength, Uniformity and Micronaire Prepared Annually Prepared Annually: 200 Sets of Color Tiles 200 Trash Tiles 100 HVI Color Standards 50 HVI Trash Standards Non-Instrument Universal Standards: Manual Grade Standards 2700 Physical Forms of Official Color and Leaf Grade Standards for U.S. Upland and 300 Physical Forms of Official Grade Standards for American Pima Reproduced Every Year 5

The Universal Standards for HVI Testing & Manual Grade Obtaining: Contact cotton.standards@ams.usda.gov to obtain: order forms, information on ordering, technical questions, and to place orders Market News Provide current and timely price and supply information on cotton and aid buyers and sellers in assessing market conditions and in making purchase and sale decisions. Gathering Market Data Turning Data Into Reports Analyzed Data from Reporters is Reviewed and Compiled at Headquarters Manufacturer Other Government Agencies Merchants Daily Spot Quotations Other Monthly/Annual Specialty Reports Producers Market News Reporter USDA Classing Laboratories Weekly Market Review Weekly Quality of Classed Monthly/Annual Price Statistics Getting Reports to Customers Market News on the Internet Internet Manufacturers Mail Customers Producers Weekly Market Review Quality Prices E-Mail Linters Visitors Merchants Other Govʼt Agencies Long Staple Review Varieties 6

How the R&P Program Works Research And Promotion Research Advertising Agricultural Research Market Share & Profits A small assessment paid on each U.S. bale and on imported cotton goods funds research and promotion of cotton and cotton products United States Department of Agriculture Agricultural Marketing Service Division Overview of the USDA Classification Program Website: http://www.ams.usda.gov/cotton 7