A statistical approach for determining the technological value of a variety of cotton is presented. The approach suggests that the market value of cotton should correspond to its technological value in a particular manufacturing system; that is, the value of a bale of cotton should be determined based on its expected performance in the textile mill and the yarn quality obtained from it. A model relating fiber to yarn properties is a basic requirement for implementing the approach. The procedures used in this approach include developing a multiple regression model relating HVI fiber properties to the desired quality parameter of yarn (skein break factor), determining the percent relative contribution of a fiber property with respect to skein break factor, selecting a reference set of HVI fiber properties, determining a difference factor of the difference in value between fiber properties of a particular variety and the reference set, and finally, developing a premium/discount formula. The main feature of the approach is its flexibility in accommodating different fiber properties and yarns of different counts produced on different spinning systems. © 1990, Sage Publications. All rights reserved.