Cotton Prices Plummeted Cotton Farmers Switch To Cotton Enterprises Collective "Half Start"

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Cotton farmers pull out cotton plants ahead of time.

Dezhou, Shandong, is an important textile base in the country. There are 247 cotton textile enterprises in the city, and the annual demand for cotton is about 450 thousand tons.

According to the Dezhou Cotton Association's monitoring, at present, the purchase price of grade four seed cotton in Dezhou is about 7.8 yuan / kg, down by 40% over the same period.

Last year's four level

Ma Yuzhen Township, an old town in Wucheng County, Dezhou, has planted 13 mu.

This year, cotton prices are low, and cotton farmers' profit margins are too thin. Many cotton farmers have already "abandoned cotton from grain".

In 2008, the cotton planting area in Dezhou was 2 million 900 thousand mu, 2 million 310 thousand mu in 2009, and 1 million 550 thousand mu in 2010.

Many cotton farmers have plugged their cotton plants earlier this year and planted wheat.

According to the cotton association of Dezhou, the cotton planting area of the whole city will decrease by 20%-30% next year.

Cotton textile industry faces shuffle

Wucheng County Cambridge Cotton Industry Co., Ltd. is a large cotton processing enterprise in the region. Sun Ronggui, general manager of the company, told reporters that it was abnormal to start from last month.

He said that the enterprise is now "two difficult", one is the seed cotton is not good to accept, the cotton farmers reluctant to sell mentality is very strong, the other is the price of leather cotton is low and difficult to sell.

Last month, the company basically ran out of money, and this month it is estimated that it will lose thirty thousand or forty thousand yuan.

The situation with Longxiang cotton Co., Ltd., which is separated from Cambridge company, is equally bad.

Lv Baofeng, the head of the company, told reporters that the company is now half up, mainly to retain workers and maintain some old customers.

Ma Junkai, Deputy Secretary General of Dezhou Cotton Association, said that since the beginning of March this year, cotton prices have dropped sharply as cotton prices have dropped sharply. Textile enterprises are operating very hard.

In 5-7, 80% of the local small and medium sized cotton textile enterprises ceased production and limited production, and their difficulty was no less than the impact caused by the financial crisis in 2008.

Since mid September, the average operating rate of cotton yarn enterprises is only around 70%.

It is understood that the 110 Canton fair paction data is not optimistic, the European and American orders are insufficient, the reduction is 20% to 30%.

According to the analysis of the industry, although the national temporary purchasing and storage policy has stabilized the cotton price, the new round of reshuffle is still inevitable.