|Calcot is a cooperative marketing business, which by definition means we are owned and operated for the benefit of those who use our products and services.
That means we're owned and operated by cotton growers of the Far Western states of California , Arizona, New Mexico and Texas, which are well known in the cotton industry for producing some of the best cotton and shipping it anywhere in the world.
Organized in 1927, Calcot has been successful because of the belief and commitment of those who own the business. Our marketing philosophies are fairly conservative, but designed to produce great results, year in and year out.
Much of our growers' production will be marketed through the Seasonal Pool, but there are also a wide array of marketing choices in our Call Pool , where growers can set at least a portion of their price. For more information on marketing choices, visit this page.
Regardless of what choices the grower makes, all growers benefit from Calcot's expertise and professional market experience, as well as low cost cotton warehousing. Our warehousing facilities are operated as a cost center, not a profit center, allowing us full control over our facilities and shipping schedules. Mill customers like the fact that we control our own destiny, and the rewards pay out to our growers.
Calcot is governed by a board comprised exclusively of cotton grower-members who insure proper oversight and direction, and represent all the growing areas of our two states.
Calcot members also have the assurance that their cotton will be marketed equitably, and our sales team will find the best home for each growers' cotton. It's a promise few can make, and fewer still can deliver upon, but we do.
That arrangement means each grower will receive maximum sales value, minus the direct costs of marketing. Profit enhancing mechanisms--including but not limited to bale weight gains, quality gains in the marketplace, savings in carrying charges and government program benefits (when available) will always accrue to the benefit of the grower.
Pooling cotton with other members' cotton, each producer gains additional value through greater efficiency, greater market potential, higher sales prices and reduced handling costs.
Each member also benefits from professional and knowledgeable risk management that uses every available tools such as futures and options to protect the value of his crop.
Stringent safeguards are built into the process: the Calcot board has a very specific risk management policy in effect that directs staff performance in the futures market, and a separate independent audit is done at the end of each season by a highly respected accounting firm.
Calcot not only benefits its members, but, by its sheer presence in the market, also benefits non-members. If Calcot did not exist, cotton growers would have a far more difficult time getting a fair price for their crop, since they would be at the mercy of independent buyers.
Cooperatives are really the original "do it yourself" business. In effect, Calcot eliminates the outside "middle man" by being the middle man. Overhead costs are automatically lowered, and profit achievements are returned to the grower, not paid out to a third party. We call it "maximizing returns." For 80 years, growers have called it a great idea.
Whatever you call it, it means more money for a season's cotton production. If you're a Far Western cotton producer, you need to find the right home for your cotton crop. Give us a call.