A Chain Reaction Of Cotton

After 16 days of heavy rain washing, the cotton field of Jiang Yongjun, a large cotton farmer in lituan Town, Changyi, was greener in the sunshine.

Right now, it's only a month away from cotton.

However, despite the good growth of new cotton, Jiang Yongjun, who could have contracted 200 mu of cotton fields, was not happy.

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Cotton farmers: sell a pound for 60 Fen

Jiang Yongjun, 36, has been growing cotton for 10 years. His skin is tanned. The area of seed cotton has also grown from the first few acres to the present 200 mu, which is increasingly sensitive to the fluctuation of cotton price and the experience of selling cotton is also increasing day by day.

"Last year's cotton sold a high point, 6.3 yuan / Jin, earned 1000 yuan per mu."

He said some of the neighbouring villages

According to his rough statement, "rent area is 500 yuan per mu a year, planting 100 yuan / mu, fertilizer 160 yuan / mu, pesticide 200 yuan / mu, management labor 320 yuan / mu, pick flowers 450 yuan / Mu", total 1730 yuan / mu.

According to the yield of 420 kg per mu, the cost of seed cotton is as high as 4.12 yuan / Jin.

"Liu Tuan Town is near the seaside, mostly salinized land, and the cost of land leasing is relatively low.

Far away from the seaside is good, generally in 600 yuan -980 yuan / mu, labor cost is also high, light pick flower is a higher than Liu Tuan 0.2 yuan / Jin.

Liu Jinkai, director of Changyi cotton production office and chairman of Dongfang Seed Industry Co., Ltd., told reporters that the cost of these large cotton farmers is relatively high, generally around 4.5 yuan / Jin.

Cotton now

"Cotton farmers can't afford to hurt themselves!" Liu Jinkai sighed. "Cotton growers are not strong enough to resist risks, and if some retail investors lose money, they may replant corn and wheat next year.

In Changyi, more than half of the cotton growing area comes from retail investors.

According to Sun Jinxian, chief of production regulation department of Agricultural Bureau of Changyi Agricultural Bureau, according to the existing regulations, there are 15 yuan seed subsidy per mu, but there is no comprehensive subsidy for seed cotton subsidies and agricultural subsidies, and there are 3 kinds of subsidies for total grain per mu.

"If the cotton seed loss, a mu of 15 yuan of subsidies do not help, can not mobilize the enthusiasm of cotton farmers."

Liu Jinkai worried that Changyi's cotton planting area is currently about 140 thousand mu, in recent years there have been signs of reduction.

Spinning enterprises: profit is not as good as interest.

In addition to international market factors, cotton farmers and experts attributed the cotton price depression to the downstream downturn.

"Start compensation, do not start up also compensate, profits are less than interest on loans."

Han Shi Sheng, general manager of Changyi Dongsheng Textile Co., Ltd. (Changyi Dongsheng Textile Co., Ltd.) is helpless, but the image describes the embarrassment of Shandong textile enterprises.

Han Qisheng's zbu town has a total area of 100.5 square kilometers, but there are more than 100 textile enterprises, with an average of 1 square kilometers and 1, and the textile industry is also one of the six pillar industries of the town.

The production of a ton of cotton yarn is worth about 2000 yuan, which is a consistent estimate of the owner of the textile enterprise in Shi Bu Town.

"More than half of the local textile enterprises have been discontinued."

Han Qisheng said that if there was a limit on production, there would be 70%.

Dongsheng textile, founded in 2003, is located in the industrial park of Tian Jia, Shek Po Town, specializing in the production of 21S air spinning. It produces 1600 tons of cotton yarn in a year. Its main products are blanching cloth, printed cloth, light colored cloth and other craft cloth.

"The company now has tens of millions of yuan credit union loans, interest to more than 10%.

Taking into account the interest on loans and employment problems, dare not stop work, the recent operating rate remained at 50%-60%.

Han Qisheng said.

The employment problem is a big problem. Shi Bu Town textile enterprise is not only difficult to recruit skilled skilled workers, even fewer new workers.

"According to the situation of our factory, the wages increased, and the staff aged, the average age was 20 years old, and now there are quite a few elderly people aged 50."

Wang Quanchun, general manager of Changyi Modern Textile Co., complained that young workers are unwilling to tolerate "dirty, tired and bad environment" jobs.

On the other hand, most of the staff are local people, with low quality and slow working style.

What is more serious is that the mobility of workers is very large and they are very difficult to manage if they want to go.

"Textile industry is our pillar industry, and its social benefits are very obvious.

Even if our owners lose money, the workers' wages must be paid. "

Han Qisheng said, "we hope our situation will be taken seriously.

Otherwise, about 30% of the local textile enterprises will be closed down.

Dyeing enterprises: maintaining small profits by export tax rebates

In the cotton industry chain, printing and dyeing enterprises are often omitted by market participants.

People often think that the business mode of printing and dyeing enterprises is to customize flower colors by clothing enterprises, entrust cloth to printing and dyeing enterprises, and then return to clothing enterprises.

That is to say, the raw materials of printing and dyeing enterprises are cloth, but they do not need to be bought, they only bear the cost of printing and dyeing.

"Generally speaking, printing and dyeing enterprises do not have to bear the ups and downs of cotton prices and cloth prices, and there will not be significant losses."

Liu Jinkai said.

However, some printing and dyeing enterprises in Changyi not only do printing and dyeing, but have developed into a "spinning, weaving, dyeing, printing and export" dragon.

In the west development area of Changyi, a large printing and dyeing plant is such a business mode.

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"One-stop operation can reduce circulation costs. Spinning alone is definitely a loss, especially for spinning high count yarn, and the company has already stopped buying grey fabrics."

An accountant at the printing and dyeing factory, a guide newspaper reporter, revealed that because the company's products are mainly exported to Africa, the final export can also get export tax rebates.

According to export sales figures, the current textile and clothing products tax rebate rate is 16%.

Overall, the company is somewhat profitable.

"If the export tax rebate is removed, the company will lose money.

At present, textile enterprises generally rely on export tax rebates.

He said, "the export tax rebate is one of the measures taken by the state to protect labor-intensive enterprises, but the current economic situation is not good, although local printing and dyeing enterprises have not stopped production, but they are limited in production."

"More pressure comes from environmental issues."

He disclosed that some enterprises may not be able to meet the emission standards in many cases, and they will be identified.

Whose fault is it?

In fact, this year's spring Canton Fair has set a "bleak" tone for this year's textile industry.

When a boss of the Canton Fair came back, he told Wang Quanchun, "look, this year's market has been planted!"

The prophecy has come true: the parties in the cotton industry chain have been injured to varying degrees.

Unlike criminal cases, there is no relevant department to give a definitive case, but can only guess the "attacker".

Guessing one: the reporters interviewed the owners and experts of textile enterprises in Dezhou and Changyi and found that they thought the trend of cotton prices this year was very weird, which is even more serious than the international financial crisis in 2008.

Many people in the two places will point at Shandong Wei Qiao venture group (hereinafter referred to as "Wei Qiao").

According to them, Wei Qiao's quotation is the weathervane of cotton price in Shandong, and the collapse of cotton price is directly related to the frequent price cut in Wei Qiao recently.

"Wei bridge has plenty of capital and there is a tilt in policy. Most spinning enterprises should look at their faces and follow suit."

A textile enterprise boss told the reporter.

Guess two: Changyi textile enterprises bosses puzzled is that the past July to September is the peak season for consumption, the cotton mill orders are also many, but this year is calm.

They argue that this is due to "oversupply and insufficient consumption".

In addition, it is partly influenced by international factors.

For small and medium-sized textile enterprises to stop, limit production or even collapse, Changyi insiders believe that after the international financial crisis in 2008, a large number of credit stimulated the economy to get out of the predicament, but then the credit scale was compressed, causing enterprises to "ischemia" and operating difficulties.