A Rising Price Of A Garment -- Rising Cost Is A Factor That Can Not Be Ignored.

February Xinjiang Akesu

Despite the chilly spring chill, people tried to avoid overmuch outdoor activities, but the farmers of "China Cotton capital" in Akesu had already gone down to the ground, and began preparations for the new cotton planting.

On the day of February, the young couple sent their children to kindergarten, and then came to the place where they worked. The area was about 150 mu of cotton planting base.

The job of the couple is to divide the smooth land into one mu per mu of land to facilitate irrigation.

Because of the large saline alkali soil in Akesu, it is necessary to release soda at this time of year.

They did not know that their work was closely related to the soaring price of cotton in the second half of this year.

In fact, it is a cotton worker.

In 2005, three families from Yili moved to Akesu to earn money to help others grow cotton.

Yang Jiaping, the owner of the 150 acres of land currently cultivated, is a demobilized soldier of a regiment of Akesu agricultural first division.

Not long ago, the 150 acres of land that had been taken care of by the group were ushered in the first irrigation in 2010.

The snow water from Tianshan wetted the black sneakers of the group.

What Niyaz didn't expect was that

The 50% increase in water costs has put pressure on Yang Jiaping, the boss.

Before he changed his job, Yang served as an accountant in the Corps. He was more sensitive to numbers than ordinary people.

The water fee per mu is increased by 60 yuan, and 150 mu is 9000 yuan, and the drip irrigation should be irrigated at least eight or nine times a year.

This means that only one water fee will cost him more than 70 thousand ~8 yuan this year.

Another worry for Yang Jiaping is that

In July, the height of Akesu's cotton plants was higher than that of the adult's knees.

The so-called "topping" is to pinch off the top of the cotton plant and eliminate the growth advantage of the top of the cotton, so that the cotton feed and water pportation will be concentrated on cotton bolls.

From February to July, the 150 acres of cotton were irrigated 5~6 times, fertilized 3~4 times and sprinkled pesticide 2~4 times.

During this period, the price of fertilizer increased by 30 yuan per mu, and the price of plastic film increased from 11 yuan per kilogram last year to 13 yuan.

But what worries Yang Jiaping more is the rise in labor costs.

Yang Jiaping's labor cost structure is that Niyaz and his husband are the daily managers of the 150 acres of cotton fields. Yang Ping pays them 110 yuan / mu / year management fee, and this year the cost has risen to 140 yuan / mu / year.

When picking cotton every year, Yang pays an extra fee of 1.1 yuan / kg for them, which is 1.4 yuan / kilogram this year.

Besides, it is the cost of temporary workers.

Yang Jiaping hired 80~100 temporary workers every year when they were busy farming. They worked 8 hours a day and settled on the same day.

Last year, the price of casual workers was 40 yuan per day, and the price of temporary workers doubled this year to 80 yuan per day.

Akesu, the 898 km away from the capital city of Urumqi, controls 1/8 of Xinjiang's 1/3 and 1/8 of the country's cotton output.

The cotton price here seems to be a pair of invisible hands to stir up sensitive nerves in the national cotton market.

Data show that as of the end of October, the purchase price of Xinjiang cotton was 12.6 yuan / kg.

According to Yang Jiaping, the purchase price of Xinjiang Zi cotton was only 6.2 yuan / kg in the same period last year.

Just as China's cotton prices have risen all the way, international cotton prices have also reached record highs. Cotton has risen nearly 50% since late 7 to early October and hit 15 years high; in October 22nd of New York, NYBOT cotton futures closed again on Friday, the highest since 1861.

As for the price rise of cotton, the prevailing trend is that the reduction of planting area, the reduction of cotton production due to weather and the speculation of idle capital are the main reasons.

But in Yang Jiaping's view, under the background of inflation, the rise of production material and manpower cost has helped cotton prices rise.

"Although the sharp rise in cotton prices this year has a lot to do with the reduction of cotton planting area, the reduction of global cotton production and the speculation of idle capital, the rising cost is a factor that can not be ignored.

Even if we put aside a few reasons, cotton prices will definitely not fall this year.

Yang Jiaping told China business newspaper reporter.

September Shandong Yuncheng

"Cotton prices are really crazy.

I haven't seen cotton prices so high for many years when I run a cotton mill. "

At the other end of the phone, the voice of a spinning mill boss in Shandong Yuncheng is somewhat hoarse.

The scale of the mill is 80 thousand spindles, which is considered to be a large scale in the county which is famous for its Luxi Yellow Cattle and Small Tail Han sheep.

What Kao Wan Li can not understand is that since September, cotton as raw material has been priced at a price per day, and his product, cotton yarn, is "going with the market".

"Now the price of grade three cotton is between 28 thousand yuan / ton and 29 thousand yuan / ton, while the price of two or three grade mixed cotton that can spin 60 yarn is more than 29 thousand yuan / ton, and cotton price was only 12 thousand yuan / ton at this time last year."

Gao Wanli told China business newspaper reporter.

There are three sources of cotton purchase from Kwan Wan: Xinjiang cotton, state cotton and imported cotton, of which Xinjiang cotton accounts for more than 80%, and the products of its spinning mill are mainly two, 40 yarn and 60 yarn are sold to weaving enterprises in Shandong, Jiangsu, Zhejiang, Guangzhou and other places.

The high price of raw materials has forced the company to compress cotton stocks again.

According to past experience, cotton mill stock should at least guarantee two or three months' production, but in the case of high cotton prices, only one month's cotton stocks are retained.

"We all know that cotton prices will rise later, but do not dare to bulk up goods."

"The fear of cotton mill owners is getting worse." we are afraid that cotton prices will drop to 9000 yuan / ton from the highest 18 thousand yuan per ton in 2008.

The rising cost of labor is a problem that no enterprise can avoid.

At the beginning of this year, Gao Wan made a total wage adjustment for the workers in the factory: the average wage of the workers rose from 1500 yuan a month last year to about 2000 yuan now.

As a businessman, Kao Wan Li will not let himself suffer. He pferred the upstream cost increase to the downstream customers.

The rising price of the upstream industry chain quickly passed to the textile enterprises.

The price of raw cotton yarn has risen by 50%~60% in the Dong Du Textile Group in Zhangjiagang, Jiangsu.

The main business of Dong Du group is knitted fabric production, of which 80% is used for export.

According to Xu Weimin, chairman of Dong Du group, the product of Dong Du group rose by 20%~25% when the cost rose.

Because most of the customers of Dong Du group are well-known enterprises for many years, the price increase of Dong Du group is conservative.

{page_break}

October Hebei Baoding

For Li Quan, October 3rd is an unforgettable day.

On this day, he routinely placed an order for 40 thousand shirt fabrics to Shandong's Tai run textile group, a company that had been working in harmony.

Li Quan is the director of the Baoding branch of a shirt manufacturer in Hebei. The factory has 400 employees and has an annual output of 1 million 800 thousand shirts.

40 thousand shirts need about 60 thousand meters of fabric.

Due to the constant news of cotton price rise, Li Quan deliberately expanded some budget in the past market price of 1.23 yuan / meter, and planned to purchase raw materials at 1.3 yuan / meter price.

Even if there is psychological preparation, the other side's quotation still let Li Quan surprise, the fabric price is as high as 1.5 yuan / meter.

Li Quan's shirt factory is to sell some brands in the supermarket to do the foundry, the profit space is very low, at such a price, it may be hard to guarantee even this.

Li Quan inquired the price of other upstream customers respectively.

The price of the other party is either higher than 1.5 yuan / meter, or simply claiming no goods.

As the industry, Li Quan knows that "no goods" is just a perfunctory word, in fact, the other side is low price or hoarding goods waiting for a higher price.

In order not to break the trust of the downstream customers, let the 40 thousand shirts be made on schedule, Li Li had to call the boss of the Tai run textile group in person, because of the affection, the other party reduced 5 cents on the basis of 1.5 yuan / meter.

At the same time, Li Quan discussed with the downstream customers that each shirt increased 5 cents at the original price.

With the upstream and downstream communication and bargaining, Li has been busy for a week. At the same time, because no raw materials were purchased, the factory was basically shut down for a week.

Li Quan only had a deep understanding of the cotton price rise brought by this inflation.

Since October, the price of fabrics is also a price of two days.

Li seems to be accustomed to this price change.

At the other end, Li also gave customers a price of 5 cents per shirt and gradually increased their prices.

Li Quan counted the bill. This year's fabric has increased by 50% over the same period last year, which has risen by 25% in just 4 months.

In fact, Li and the upstream customers have also signed relevant insurance contracts.

However, in the context of such a crazy price increase of raw materials, the contract seems to be powerless.

"This is the textile industry. If we follow the contract closely, it is rather strange."

Li Quan told China business newspaper reporter.

The other hand with higher price is labor cost.

In this regard, Li Quan admitted that Foxconn employees played a "bad" role model.

"Now the information is very developed, and the employees are online. When they look at the salary increase of the southern enterprises, they compare with their fellow townsmen and classmates, so they feel that they are earning less, and then raise the salary requirement."

Li Quan said.

According to Li Quan, he has paid his employees a salary during the Spring Festival.

With the recent inflation, food and daily necessities prices rose, he decided to raise his salary once again in December, from the original 1500 yuan to 1800 yuan.

"However, the price of the order should also be raised.

We decided to add a dollar for each shirt from December. "

Li Quan said.

As for the price increase, Li Quan said that different customers have different degrees of acceptance.

"Russia, for example, has no heavy industry in Russia's light industry, so their response to textile prices is rather slow.

Our asking price is very difficult for the other side to accept.

Li Quan said.

Gansu Huining, November

A thin snow brought down the temperature of the Loess Plateau.

At present, the temperature of Lanzhou, capital of Gansu Province, is close to 0 degrees, and sales of winter clothes are beginning to get better.

Huining, a small town in central Gansu, has lagged behind the big cities in response to market prices. However, the winter clothing has shown a marked rise in price.

Xiao Liu took a nap in the store of Nanguan cross in Ning Ning county.

From time to time, some guests came in, and touched the thickness of the latest cotton padded clothes on the hanger, asked the price, then sighed and shook their heads away.

Xiao Liu, 23, once sold clothes in Lanzhou and worked for several years to save tens of thousands of yuan. He opened a clothing store with an area of 80 square meters in Huining county.

Xiao Liu has become familiar with this.

According to Xiao Liu, when she made wholesale clothes in Lanzhou last month, the purchase price rose much more than before.

"The original price of thermal underwear is 30 yuan, which is now 50 yuan, and the average price of cotton clothing has increased from two hundred to $two hundred."

Xiao Liu said.

The rise in clothing prices makes it difficult for consumers in Huining to accept it.

As a result, Xiao Liu did not dare to enter the stock market any time.

When I put on my coat, I put in 3 to 5 pieces at a time, then sold one and then another one.

Thermal underwear sells well and can enter dozens of items at a time.

Xiao Liu said.

However, for some big cities, the news of the increase in cotton clothing has long been reported.

According to media reports, the increase of cotton clothing this year is as high as 20%, and even consumers can "reserve" winter clothes through group buying.

link

From the gap between supply and demand, according to the US Department of agriculture, China's cotton supply and demand gap reached 3 million 483 thousand and 600 tons in 2010, an increase of 217 thousand and 700 tons compared with the same period last year, an increase of 6.66% over the same period last year.

The gap between supply and demand in 2009 was 3 million 265 thousand and 900 tons, an increase of 1 million 676 thousand and 500 tons over 2008, an increase of 105% over the same period last year.

Despite the decline in global and Chinese inventories, the severity of the situation is not as severe as in 2009, and the growth rate of supply and demand gap is much better than that in 2009.

Cotton prices for basic support continue to rise, but the rate of increase will obviously slow down.

The only country with surplus production in the world is the United States. In the past ten years, the gap between supply and demand in the United States has been negative, reaching -291.75 million tons in 2010, and a surplus of 1 million 3 thousand and 700 tons over 2009.

Therefore, China's supply and demand gap needs to rely on the import of cotton from the United States to fill up. The annual import of cotton accounts for about 25% of China's total cotton consumption. Therefore, the price of American cotton may also rise because of the promotion of the price of national cotton.