Behind The Ups And Downs Of Cotton Prices
CCTV's program focusing on agriculture, rural areas and farmers in November 16, 2011 broadcast the back of the cotton price fluctuation.
Reporter: Zhai Shuoming: Wang Shiqing
Moderator 1: welcome to continue to watch "focus on agriculture, rural areas and farmers"! Wuqiao county is a famous county of grain and cotton production in China. Cotton production has a history of more than 630 years, and it is 300 thousand acres of cotton growing all the year round. It is known as "Silver Wuqiao". In October and November, it should be the peak season for cotton purchase in different parts of the country. But this year, the cotton in Wuqiao county has not been picked up in large quantities in the cotton field, so what has happened on the local side?
The same time (reporter): I am now in Wuqiao county. You can see that behind me is a piece of cotton that has not been picked.
It is still drizzle now. According to the usual farmers, they should rush to finish the cotton before the light rain. If they are caught in the rain, the quality of the cotton will decrease and the price will drop. Why do the local people not collect the cotton?
Commentary: Wuqiao county is one of the top 100 cotton counties in the country. It has 300 thousand mu of cotton planted all the year round, and is known as "silver Wuqiao".
At this time of the past year, these cotton had been picked up, but this year, reporters saw in Wuqiao County, due to various factors, there are still nearly 1/4 of the cotton remain in the field.
Cotton picking and picking is everywhere on both sides of the road.
Over the same period (Liu Junqi, Zhang Wan Village, Wuqiao County, Cangzhou, Hebei): cotton is lost this year.
In the same period (Li Xiuqin, Zhengzhuang village, Wuqiao County, Cangzhou, Hebei): cotton is not valuable, it is worthless and it is taken home to put there.
Commentary: in the home of Li Xiuqin, a villager in Zhengzhuang village, Wuqiao County, a reporter saw that the picked cotton seed had been piled up into a mountain.
In the same period (Li Xiuqin, Zhengzhuang village, Wuqiao County, Cangzhou, Hebei): it is not half as bad as last year.
Commentary: Li Xiuqin told reporters that cotton prices last year reached 7 yuan a catty, so high cotton prices, Li Xiuqin expanded the planting area last year, planted 8 acres of cotton in the family, and expects to make a big profit this year.
However, since March this year, cotton prices have gone down all the way, and now the price of cotton purchased locally has dropped to 3.2 yuan a kilogram, which made Li Xiuqin unprepared.
Commentary: Li Xiuqin collected more than 4000 kg of seed cotton at the end of this year.
Now the house has become a warehouse for cotton.
In the same period (Li Xiuqin, Zhengzhuang village, Wuqiao County, Cangzhou, Hebei province): one kilogram was not sold at home.
Commentary: Zheng Fuqing, who planted cotton in the same village for more than 10 years, planted 10 mu of cotton this year, with an output of more than 400 Jin per mu, but the harvest did not bring much joy to Lao Zheng.
The same period (Zheng Fuqing, Zhengzhuang village, Wuqiao County, Cangzhou, Hebei): less than 4 yuan can not be sold, not enough cost.
Commentary: the reporter saw that the old Cheng family was also full of unsold seed cotton.
Talking about the cotton price that people can't find out, Lao Zheng is also a bitter water.
In the same period (Zheng Fuqing, Zhengzhuang village, Wuqiao County, Cangzhou, Hebei): now all kinds of cotton are not as good as wheat and grain.
Commentary: Lao Zheng told reporters that cotton prices last year were high prices he had never seen before. Because cotton prices had not been high in previous years, only two mu of cotton planted at home last year, Lao Zheng could only watch others earn money.
The same period (Zheng Fuqing, Zhengzhuang village, Wuqiao County, Cangzhou City, Hebei province): at this time last year, 6 yuan more than one jin, to 7 yuan a Jin.
Commentary: after seeing the cotton price rising last year, Lao Zheng decided to expand the area of cotton planting and plant all the ten acres of cotton in the family.
Under the careful care of Lao Zheng's early morning and black, the growth of cotton did not disappoint him. Just as the whole family looked forward to a good harvest, the cotton price came to a 180 degree turn this year, shattered the dream of a family.
In the same period (Zheng Fuqing, Zhengzhuang village, Wuqiao County, Cangzhou, Hebei): basically, the price has dropped by half.
Commentary: looking at the pile of cotton seeds in the house, Lao Zheng is burning with anxiety. If the cotton price does not pick up, the value of these stocks will become less and less.
Commentary: reporters visited in Wuqiao County learned that because of the low purchase price of cotton this year, most villagers were hoarding cotton and cotton farmers could only wait for cotton.
Same time (reporter): did you sell the cotton this year?
In the same period (Zhang Huaxiang, Zhang Wan Village, Wuqiao County, Cangzhou, Hebei): No, it's not easy to sell.
In the same period (Zheng Furong, Cao Wa village, Wuqiao County, Cangzhou, Hebei): lose money and do not sell at home.
Commentary: it is understood that the rapidly rising prices and labor costs have become the burden on the shoulders of cotton farmers.
Some farmers have counted the accounts for the journalists. This year cotton can only harvest 350 Jin per mu.
The cost of fertilizer, pesticide and seeds in an acre area needs 500 yuan, and the land contract cost per mu is 500 yuan.
Coupled with plastic film, water and electricity, labor and so on, the expenditure is about 1500 yuan.
Cheap cotton prices have made this year's plant owners lose their blood.
The same period (Li Xiuqin, Zhengzhuang village, Wuqiao County, Cangzhou, Hebei): fertilizer has increased, and the pharmaceutical industry has increased money.
In the same period (Zhang Huaxiang, Zhang Wan Village, Wuqiao County, Cangzhou, Hebei): the investment is large, and all kinds of fertilizer investments are large.
Commentary: reporters in the interview found that sluggish sales and low prices were also visible in other cotton producing areas in Wuqiao county.
In the same period (Zheng Furong, Cao Wa village, Wuqiao County, Cangzhou City, Hebei province): I have not sold cotton this year, and I have put it in my house.
In the same period (reporter): Zheng Da Niang, who works in the cotton fields behind me, is already more than 70 years old. According to her introduction, the situation of cotton farmers in Cao Wa village is similar to that of her family this year.
In the same period (Zhang Huizhen, villager of Cao Wa village, Wuqiao County, Cangzhou City, Hebei province): pick it up and leave it at home, in the house.
In the same period (Li Xianming, Secretary of the Party committee of Zhengzhuang village, Wuqiao County, Cangzhou, Hebei): now the cotton household of the common people has been stored at home, he can not sell, after selling, he will lose money.
From 2:2010 to date, the price of cotton has dropped from "the top of the mountain" to the bottom of the valley in a short span of one year.
In the same period last year, cotton was at the top of the roller coaster. The price of seed cotton exceeded 7 yuan per catty, but today, 3.5 yuan per catty is not necessarily sold.
Does the decline in cotton prices mean that both the purchasers and the processing enterprises are making profits?
Commentary: this year's low cotton prices have also made most of the villagers hoard cotton and cotton farmers can only wait for cotton.
Local cotton buyers are also having a headache.
Reporters met cotton buyer Wang Huaiyu on the road side.
The same period (Wang Huaiyu, cotton buyer of Wuqiao County, Cangzhou City, Hebei province): it is not easy to hand over to the present. Today, these are 3.7 yuan a Jin, and they do not know how much they sell to cotton station.
Commentary: Wang Huaiyu told reporters that because of low cotton prices, a maximum of 1000 Jin a day.
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The same period (Wang Huaiyu, cotton buyer of Wuqiao County, Cangzhou City, Hebei province): one day it was collected twice, but now it can't be seen for several days.
Commentary: Wang Huaiyu has been a cotton buyer for 8 years in the locality. In his view, cotton prices are rising and falling.
The same period (Wang Huaiyu, cotton buyer of Wuqiao County, Cangzhou City, Hebei province): it is pulling a trip to lose a trip. Basically, it is now collecting 3.7 yuan to 3.6 yuan a Jin to cotton station.
When this happens, you see, it is all pulled back, and it can not be sold for money.
Commentary: in a cotton gathering station in Yu Ji Town, Wuqiao County, the reporter saw that there were few vehicles for cotton merchants.
In the same period (Liu Wenyi, cotton broker of Wuqiao County, Cangzhou City, Hebei province): 500 kg to 600 Jin a day.
In the same period (Gao Jinzhong, cotton broker, Wuqiao County, Cangzhou, Hebei): business here was good last year, but not this year.
In the same period (Liu Wenyi, cotton broker of Wuqiao County, Cangzhou City, Hebei province): 3.8 yuan a Jin, sold to him, here is 3.9 yuan a Jin, will make 10 Fen profits.
Commentary: Wu Xueqing is the head of the cotton station. He told reporters that because of the low price of cotton, this year's cotton station is very difficult to harvest cotton, let alone profit.
The same period (Wu Xueqing, cotton buyer of Wuqiao County, Cangzhou City, Hebei province): a little profit, it can be collected, and it can not be collected in the last few days.
Commentary: from reporters in Wu Xueqing's mouth, there were more than 100 cotton stations throughout Wuqiao county a few years ago, but now there are only 20 left.
And his cotton station is now struggling to support it. Looking at the cotton station, Lao Wu has a feeling that he can not speak out.
The same period (Wu Xueqing, cotton buyer of Wuqiao County, Cangzhou City, Hebei province): I have been doing this industry for 7 to 8 years. I think cotton business is good, but it is not easy to do it. It is all yellow and compensable.
Commentary: cotton prices suddenly rise and fall, not only let farmers do not know what to do, even cotton spinning enterprises are also in trouble.
Li Yitan is a textile trader from Taiwan, China. He started textile business there several years ago.
In the same period (Li Yitan, head of a textile company in Wuqiao County, Cangzhou, Shandong): we made money last year, and this year we will not be able to do so. Most of the cotton companies involved are losing money this year.
Commentary: Li Yitan told reporters that cotton prices soared last year, but also raised the price of cotton yarn, but this year cotton yarn also fell, which makes it difficult for enterprises to continue.
In the same period (Li Yitan, head of a textile company in Wuqiao County, Cangzhou, Shandong): it does not have a particularly good advantage for our processing plant, because the selling price falls even more fiercely than the raw material price.
Commentary: Li Yitan's enterprise is also a large scale cotton spinning enterprise in the locals. The daily output is about 20 tons. Now, selling 20 tons of cotton yarn will cost about 60 thousand yuan.
He told reporters that they are now afraid to buy cotton and do not dare to produce cotton yarn in large quantities.
In the same period (Li Yitan, head of a textile company in Wuqiao County, Cangzhou, Shandong): the price of raw materials was 10 thousand yuan, and the yarn price might be between 11 thousand yuan and 12 thousand yuan.
For us, we didn't get any profits.
Commentary: in Wuqiao County, the reporter saw that many textile factories are quiet now, and the enterprises have been shut down for 1 months.
In the interview, the reporter also learned that a considerable number of cotton processing enterprises are also seriously losing money.
The fluctuation of cotton price makes the enterprises in the industry chain face great pressure.
In the same period (Gao Fang, executive vice president of China Cotton Association):
Studio 3: the rise and fall of cotton prices not only let a considerable amount of cotton hit the cotton farmers' hands, but also directly affected cotton growers' confidence in planting cotton. Some farmers reduced their seed cotton area and tended to grow corn or wheat or go out to work.
So, what causes the cotton price fluctuating?
Commentary: cotton is an important cash crop after grain in China.
In the survey, the reporter learned that cotton planting period is 6 or 7 months. Cotton farmers generally believe that planting cotton is not only time-consuming and laborious, but also does not make money, and the price is not good enough. Cotton farmers' enthusiasm for growing cotton is not high.
In the same period (Zhang Huizhen, Cao Wa village, Wuqiao County, Cangzhou City, Hebei province): there is still some confidence in farmers who are raising prices and planting cotton, right?
Commentary: in the early September 2010, the new cotton in mainland China was just listed. The average price was only 18000 yuan per ton. After two months, the price jumped to more than 31000 yuan, or more than 73%, a record high.
However, since August 3rd this year, cotton prices have dropped from a high price of more than 30000 yuan per ton, and now it has dropped to less than 18900 yuan per ton.
The purchasing attitude of textile enterprises is negative, and cotton enterprises have been selling prices in a low price.
In the same period (Gao Fang, executive vice president of China Cotton Association): there are some great changes in the cotton market this year. The whole market price includes a big drop in the purchase price. Some places like Hebei may have reached 7 yuan a kilogram.
Interpretation: it is understood that China is the world's largest cotton producing country, and China is also a well deserved textile country. In 2010, China's textile industry accounted for more than half of the world's total fiber processing, and total textile exports amounted to 212 billion US dollars, accounting for about 34% of the world's total exports.
However, in recent years, influenced by the economic fluctuations in Europe and the United States, the order of cotton products has been reduced, and under the competition of Southeast Asian countries such as India, fewer orders have come to China, which is also an important reason for the decline of cotton prices.
In the same period (Gao Fang, executive vice president of China Cotton Association): in recent months, the ratio of ring to back and year-on-year exports have been decreasing.
Studio 4: with the cotton in the traditional sense of agricultural products, in 2010, the financial market has become the leader in the price rise of bulk agricultural products, and now the price has declined, the cotton industry has been baptized.
How can enterprises and cotton farmers change their minds to better cope with the ups and down of financial markets?
Commentary: in the survey, the reporters found that most farmers in China did not grow in scale, which led to the unordered development of cotton seed farming throughout the country.
In 2009 alone, the area of cotton cultivation in China was 80 million 180 thousand mu from 77 million 780 thousand acres.
The output is also from 6 million 640 thousand tons to 7 million 280 thousand tons now.
More farmers have widened the planting area blindly, and the market has formed a situation of supply exceeding demand.
In the same period (Li Xianming, Secretary of the Party committee of Zhengzhuang village, Wuqiao County, Cangzhou, Hebei): so many cotton varieties were planted this year because cotton prices were high last year, so cotton was planted this year.
In the same period (Gao Fang, executive vice president of China Cotton Association): our country especially cotton planting, it is still dominated by small-scale peasant economy.
And that is to look at the current price. The price is higher this year. I will have more variety next year. Next year, the price will be lower.
Commentary: in addition, farmers lack information on the cotton market, what kinds of money they make and plan for planting is also an important reason why cotton farmers can not resist the cold current in the market.
The same time: (reporter): do you not understand the market price of cotton?
The same period (Zheng Furong, Cao Wa village, Wuqiao County, Cangzhou, Hebei): I don't know.
The same period (Hebei province Cangzhou Wuqiao County Cao Wa village villager Zhang Huizhen): light knows cotton price.
In the same period (Gao Fang, executive vice president of China Cotton Association): all government departments or trade associations are good.
We should provide farmers with a bridge for information communication so that farmers can understand in time, not only the domestic situation, but also the international situation, and can row their own planting from Changan.
Commentary: under the adverse situation of cotton price fluctuation, the local government is also actively looking for sales channels for cotton.
In the same period (Zhang Chao, deputy magistrate of Wuqiao County, Cangzhou, Hebei): we seek the efforts of all parties and call on the social forces to help solve our problems.
Commentary: in the local investigation, the reporter learned that none of the local cotton growers had signed the purchase contract with the local enterprises.
In the same period (Zhang Huizhen, Cao Wa village, Wuqiao County, Cangzhou City, Hebei province): the self-employed person came to collect the cotton and sold it to the factory after it was collected.
Same time (reporter): did you sign a contract to protect the price?
The same period (Zheng Furong, villager of Cao Wa village, Wuqiao County, Cangzhou, Hebei): No.
Commentary: insiders call for cotton prices to fluctuate not only in cotton producing areas, but also in the corresponding protection policies.
In the same period (Gao Fang, executive vice president of China Cotton Association): the state has given a stable policy mechanism to protect farmers, and the company and farmers have established a cotton specialized agency and a leading enterprise to link up the cotton industry so that it can have a stable and sustainable development.
Moderator 5: industry experts said that the two years of the cotton market's spectacular ups and downs, it is precisely we do not pay attention to the consequences of long-term risk analysis, painful lessons.
Some experts have suggested that enterprises in the cotton industry chain, especially cotton enterprises as the middle link, must look at the whole world with a macroscopic view, and timely deliver the goods according to the law of price fluctuation.
As for cotton farmers, we should grant subsidies to farmers as well as grain subsidies, and encourage cotton farmers to set up cotton cooperatives to reduce planting costs.
Otherwise, this year's price slump will lead to a sharp shrinkage of planting area in the coming year, which will bring new hidden dangers for the sharp rise and fall of agricultural products.
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