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    Shandong Cotton Production Slide Caused By Increasing Production And Not Increasing Income

    2009/1/19 11:30:00 19

    Shandong Cotton Landslide

    The global financial crisis has deeply affected the cotton industry chain, which has affected cotton sales, purchase and sale, processing and export of textile products.

    Before the new year's day, at the cotton production and marketing analysis conference sponsored by Shandong golden autumn seed industry company, Zhao Hongliang, director of Shandong cotton production technology guidance station, said that cotton harvest in 2008 was very high, but the income of cotton growers was greatly reduced.

    Cotton production in 2008 was the highest in history due to good policies, good days and hard work.

    Preliminary statistics show that the average cotton yield (lint) is 78.1 kg, which is 4 kg higher than that of the previous year. The sowing area of cotton is 13 million 320 thousand mu, and the total output is 40 thousand tons higher than that of last year, reaching 1 million 40 thousand tons compared with the previous year.


       

    Zhao Hongliang said that as the price of agricultural products increased substantially in 2008, the cost of cotton planting increased, and the income of cotton planting decreased significantly.

    Last year's selling price and the high cost of cotton production in 2008 made cotton growers' expectations of seed cotton prices too high, mostly over 7 yuan / kg, while the actual purchase price was seriously deviated from cotton farmers' expectations.

    In the middle of September, when the pound was put in, it was about 5.6 yuan per kilogram of seed cotton, and dropped to about 4 yuan in early November. Recently, it has recovered to around 5 yuan.

    According to the survey of 2800 cotton farmers in 25 counties of 7 cities in the early December, the average price of seed cotton sold at the end of November was 4.97 yuan per kilogram, 1.44 yuan lower than the previous year, and the income decreased by 347.33 yuan.

    In the face of the current low cotton prices, cotton farmers are reluctant to sell, and cotton enterprises are buying cautiously, which is the slowest purchase for years.


       

    Affected by the decline in the efficiency of cotton planting, there will be a serious decline in cotton planting this year.

    A survey of 2800 cotton growers in early December showed that the cotton planting area in 2009 could be reduced by 13.86% over last year, the largest reduction in recent years.

    Judging from the feedback from various regions, cotton planting is likely to decrease by 20% this year.


       

    According to Zhao Hongliang, in order to stabilize the domestic cotton market and protect the interests of cotton farmers, the state has collected and stored cotton in three batches.

    According to statistics, as of December 15, 2008, the second batch of 1 million tons of storage and purchase plan has been completed 890 thousand tons, the market price of cotton has risen positive role.

    This is the largest purchase and storage of cotton in China's history.

    It is estimated that the total amount of storage and storage of cotton will reach 2 million 720 thousand tons in 2008, accounting for more than 30% of that year's output.


       

    Zhang Youqiu, chairman of Shandong golden autumn seed industry company, said that our province is both a major cotton producing province and a large cotton province. Cotton production has a great impact on Farmers' income in cotton growing areas.

    Cotton spinning spindles in our province exceed 30 million ingots, accounting for 1/4 of the country's total.

    It is estimated that the yarn output will reach 6 million tons in 2008, and the annual cotton consumption will reach more than 4 million tons, accounting for 26% and 30% of the whole country respectively.

    Cotton gap in the province is more than 3 million tons, which needs to be compensated through import and external production.

    Cotton prices continue to slump, which is bound to have a very adverse impact on cotton production in our province this year.


       

    No matter what changes have taken place in cotton supply and demand, there has been no change in the status of Shandong's major textile production provinces and textile and garment export provinces. The contradiction between the increase of textile cotton consumption and the shortage of cotton production will exist for a long time.

    Zhang Youqiu said that most cotton producing areas in China are also the main grain producing areas.

    In recent years, the state has promulgated a series of policies to support grain production, such as direct grain subsidy, grain subsidy and agricultural subsidies. Cotton did not carry out Cotton Subsidy in some cotton fields in some provinces until 2007.

    Cotton farmers are exposed to the double risks of market and nature.


       

    It can be seen that the prospects for the development of the textile industry are still promising, and the quantity of textile cotton will continue to increase. Cotton production in China is limited by food security and cotton planting technology, and the potential for increasing cotton production will be limited.

    So the prospect of cotton planting is still optimistic.


       

    Some cotton producing areas suggested that cotton should be opened and stored to raise the price of reserve cotton, and the minimum purchase price of cotton should be worked out according to the price of storage and purchase. The price should be above the cost price (seed cotton per catty should be 2.6 yuan).

    We must restrict cotton imports and protect domestic production.

    Increase support for cotton production.

    The implementation of production subsidies and agricultural subsidies can reach 80 to 100 yuan per mu according to the standards of grain production and agricultural subsidies.

    At the same time, Shandong as a big cotton producing province, the best to start the provincial reserve, to protect the income of farmers, support the healthy development of textile enterprises.


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