Cotton Production Base 40% Enterprises Stop Production

China is a big cotton country and a big textile country, but there is no pricing power and discourse power. The huge increase in cotton consumption has not benefited the domestic cotton farmers. Instead, domestic cotton prices fluctuated from the fluctuation of international cotton prices.

Dezhou, Shandong, is an important cotton production base in North China. From March to now, 80% of the local cotton spinning enterprises are in the process of stopping production and limiting production, and 40% of the enterprises are out of production.

Cotton farmers complain incessantly

In September 7th, the national development and Reform Commission and the Ministry of Finance issued a notice to decide to start the temporary cotton purchase and storage in 2011.

Central storage cotton company issued a notice that 2011 cotton temporary storage and storage is not subject to quantity restrictions, open storage.

The background of this policy was that cotton prices rose rapidly last year. Cotton prices rose more than 67% from less than two and a half months from September to the beginning of November. However, cotton prices fell rapidly since the beginning of March. Cotton prices dropped from 32000 yuan per ton to about 22000 yuan now. The price of roller coaster has made cotton farmers complain incessantly.

In Zhang Guan Tun Village, Dongli Town, Xiajin County, Dezhou, the reporter saw Wang Qifeng, a cotton grower who was worried about cotton last year.

Wang Qifeng said that in November 2010, the price of the purchase had reached about 7 yuan per catty. He wanted to wait and see for a while and could sell a good price, but never thought that in April this year, the price fell all the way, reaching a minimum of 3 yuan and 4 cents per catty, which was more than doubled.

The purchase price is now maintained at around 3 yuan and 6 cents, which is difficult for him to accept.

Without calculating the cost of labor, Wang Qifeng will earn 1100 yuan per mu according to the current price. The income of more than ten thousand yuan is no longer able to maintain the normal expenses of the family. Moreover, compared with other crops, the labor of planting cotton is much greater.

In the whole Dezhou area, the North China region was the largest.

Spinning enterprises are struggling

Dezhou is one of the traditional cotton producing areas in the country. Due to the convenience of the nearby buildings, Dezhou has a lot of advantages.

Because of the huge rise and fall of cotton prices this year, cotton purchasing and processing enterprises in Dezhou are afraid to open up acquisitions.

Then, what is the current situation of cotton spinning enterprises at the bottom of the industrial chain?

When the reporter saw Tian Jiujian, general manager of Tianrun Textile Co., Ltd., Xiajin County, Shandong Province, he was worried about cotton yarn with high price in April this year. Several months later, dozens of tons of cotton yarn had been kept in the warehouse.

In the past few months, Tian has been selling at a loss, but there are still more than a dozen tons of stock left unsold.

Tian Jiujian calculated such an account for reporters. The lint price is now 20500 yuan, the total cost of processing is 31000 yuan, but now the sales price of cotton yarn is around 28000 yuan, and every processing a ton of cotton yarn, he will lose 2000 yuan.

Cai Yupu, chief of the Xiajin County of Shandong Province, told reporters that the price of cotton yarn and cotton was upside down, and that the enterprises would lose money if they were spun out.

Nearly more than 300 of the county's cotton textile enterprises are in the first half of 75%.

The market is complicated and confusing.

According to the statistics of China cotton grower association, cotton planting area has been decreasing in recent three or four years, but the high price of cotton last year has made the market confusing.

Yang Shibin, Deputy Secretary General of the China Textile Industry Association, said that there are some external non industrial capital, that is, the so-called financial capital. After entering the product market, they hope to gain profits quickly and cause cotton prices to fluctuate more quickly.

When it comes to the reasons for the sharp fluctuation of cotton prices, many experts believe that besides the reduction of planting area and the reduction of production, capital speculation is an important reason.

Shen Peirong, chairman of Suzhou Zhen Lun cotton spinning Co., Ltd., said that the United States used the hype of "China's cotton exports less than 1 million tons in 2011" to raise cotton prices, which has harmed China's textile industry and cotton spinning industry.

It is understood that China's cotton production is 7 million tons, is the largest cotton producing country and consumer in the world, but it does not have the right to speak of cotton prices. Over the past year, the ups and downs of cotton prices have also had a huge impact on all enterprises in the domestic textile industry chain.

Now, what is the impact of the current 19800 yuan / ton price of cotton purchasing and storage plan on the cotton industry?

Yang Shibin told reporters that there is a certain gap between the price of cotton in the international market and the price of purchasing and storing.

This gap makes it difficult for domestic enterprises to compete fairly.

Experts call for more vigorous protection measures to ensure the enthusiasm of cotton growers.

Ma Junkai said that it is suggested that the state should set up a subsidy for planting cotton, and the subsidy should be at least no less than the grain subsidy.

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Hoarding or not?

The price of cotton that has been on the road has become a floating cloud. Since the first half of this year, many cotton hoarding enterprises have been in a dilemma of selling at a loss.

To add insult to injury, textile enterprises have not yet digested the raw materials that are expensive to hoard, but downstream customers have demanded that textile prices should be cut down with cotton.

The risk of hoarding is too great. Do not store up goods without risk? Textile enterprises are still fresh in their view of the rising cotton prices before. If they do not take advantage of low prices, they may face the pressure of high cost again.

The ups and downs of cotton prices make the upstream and downstream of the textile and garment industry chain break their brains.

How should Quanzhou enterprises figure out their own abacus? Or listen to the view of experts: we should abandon the risk of single raw material production and avoid the risk of bargaining. Only when we strengthen the R & D and brand promotion of new products, can we have the bottom line to negotiate prices.