China'S Cotton Production Mode Has Not Adapted To Market Competition

This summer, especially from the end of July to the first ten days of August, most of the cotton producing areas in the country experienced continuous rainfall to varying degrees, resulting in a sharp decrease in the number of cotton bolls and a serious reduction in cotton production. The reporter learned from an interview in Dongying, the main cotton producing area in our province, that many cotton farmers will not plant cotton again next year. In this regard, relevant agricultural experts believe that China's cotton production mode has not adapted to market competition, and cotton production needs to be "upgraded" as soon as possible.

A lot of losses were incurred in cotton planting this year

"I planted 36 mu of cotton this year. In previous years, the production capacity per mu has reached more than 400 jin, but this year it is less than 200 jin. It is estimated that a total of seven or eight thousand jin will be lost." On October 13, Wei Xiangming, a villager in Xingwu Village, Huanghekou Town, Kenli County, Dongying City, told reporters. It is understood that almost every household in Xingwu Village grows cotton. This year, farmers like the old Wei family, whose output has been reduced by about half, account for most of the village. The severely affected plots are even nearly out of production. Villager Wang Xiucheng's three mu of land is low-lying and seriously affected. This year, the yield per mu is only 20 to 30 jin, while last year, it reached more than 400 jin per mu.

The only good news for cotton farmers is that since the middle and late August, cotton quality has been improved due to the continuous sunny weather, sufficient sunlight, and faster boll opening of cotton peaches. Miao Xingwu, the head of the cotton station of Dongying Municipal Bureau of Agriculture, told reporters: "This year, the seed cotton is white, long and mature. The quality of seed cotton is mainly white cotton grade 2 and 3, with a very small amount of light spot dirty cotton grade 2."

The reduction of cotton production and the improvement of cotton quality are followed by the rise of cotton prices this autumn. The reporter learned that at present, the purchase price of seed cotton is about 4.2 yuan to 4.4 yuan per kilogram, up 0.5 yuan to 0.6 yuan compared with last year.

What is the income of cotton farmers when cotton production is reduced and prices rise? Wei Xiangming calculated an account for the reporter. From planting to harvesting, the input of agricultural materials such as seeds, pesticides, fertilizers and agricultural film for one mu of cotton is about 300 yuan, the pre harvest labor costs are about 180 yuan, the contracted land is 480 yuan/mu, and the cotton pickers' wages are 0.9 yuan/jin. In this way, the input for planting one mu of cotton, excluding the harvest, is about 960 yuan; According to the average yield of 200 jin per mu this year and the price of 4.4 yuan/jin, the gross income per mu is 880 yuan. If cotton pickers are employed, 180 yuan will be removed. Without considering the labor of cotton farmers, cotton farmers will lose 80 yuan to 260 yuan per mu.

Cotton price rise is limited to seed cotton purchase

The lint processing enterprises at the upstream of the cotton processing industry chain are the first to be affected in the process of cotton production reduction and price increase.

As of October 10, the seed cotton purchased by Kenli Tianyuan Cotton Industry Co., Ltd. this year decreased by nearly half compared with the same period last year. Li Jinliang, the head of the acquisition department of the company, told reporters that this year's lint processing enterprises were affected by the rise in seed cotton prices, and their profit margins were severely compressed. The operating pressure was higher than in previous years. Although the purchase price of seed cotton this year is much higher than that in previous years, the seed cotton is basically used for delivery and storage after being processed into lint, and there is a clear price for delivery and storage, which is 20400 yuan/ton this year as last year. In addition, since September 1 this year, China has begun to implement the new cotton standard GB1103-2012 Cotton Fine Linter Cotton, which has more stringent requirements on the quality of cotton storage. This year's cotton has high lint percentage and good quality, but the rainy weather has resulted in short cotton fiber, which is not conducive to delivery and storage. This has increased the pressure on the lint processing enterprises to collect and store.

As for the price trend of cotton, Miao Xingwu believes that China's cotton has a clear price for collection and storage, and delivery and storage are the only way out for most lint processing enterprises. The standard line of 20400 yuan/ton includes cotton planting costs, cotton farmers' income, and cotton processing enterprises' profits. If the market purchase price is too high, but the quality cannot reach the ideal level, lint processing enterprises are bound to lose money. In addition, China has implemented the cotton purchase and storage policy for several years, and now the national cotton inventory is sufficient. Although the new cotton production has been reduced, it will not have a great impact on the overall cotton supply and demand relationship in China. On the whole, China's cotton supply is stable, and there will be no phenomenon of cotton enterprises scrambling for cotton, and it will not have a great impact on cotton enterprises.

Miao Xingwu believes that at present spin Enterprise demand for cotton is not strong, and many enterprises are unwilling to use domestic cotton. With tariffs, the price of imported cotton is almost the same as that of domestic cotton, but the quality of foreign cotton is generally higher than that of domestic cotton. Textile enterprises will give priority to the use of import quota cotton. Therefore, although the cotton price has increased due to the impact of production reduction, the increase is not significant and is limited to the purchase price of seed cotton market.

Cotton prices hurt farmers, and cotton farmers "vote with their feet"

In recent years, Dongying cotton has suffered many disasters, and the price is much lower than before. When cotton prices fall, cotton farmers' income will be greatly affected; Cotton prices rose, but cotton farmers' income did not increase much. The phenomenon of "cotton price harms farmers" appears repeatedly, but some cotton farmers choose to "vote with their feet" - abandon cotton instead of planting.

The reporter learned from Dongying Agricultural Bureau that in recent years, farmers' enthusiasm for cotton planting has declined due to low cotton prices, increased planting costs, and declining cotton planting benefits. This year, the cotton planting area of Dongying City is 2048400 mu, 540100 mu less than last year's 2588400 mu. It is expected that the cotton planting area will be reduced next year.

There is another reason why cotton farmers are unwilling to plant cotton again. Planting cotton is a production activity that costs more labor. At present, the rural labor force is mainly middle-aged and old, and it is difficult to adapt to the tired cotton planting operation; Even in good years when planting cotton, the profit per mu is less than 1000 yuan. Farmers who abandoned cotton also switched to other crops, but they had the idea of transferring their land. Wei Xiangming told the reporter: "Some time ago, I heard that an enterprise would come to the village to transfer land, plant efficient vegetable greenhouses, cultivate seedlings, etc., many villagers said that they would transfer the land. After the transfer of land, the transfer cost can earn thousands of yuan a year, and they can work nearby. At least, the annual income is more than 20000 yuan, so it doesn't have to be as hard as planting cotton."

Miao Xingwu believes that from a broader perspective, China's cotton production costs are high, mechanization level is low, and sales channels are not smooth. The cotton imported from the United States, Australia and other countries in China is produced in a centralized way, which is highly mechanized, so the cost is relatively low. From this point of view, it is difficult to rely on traditional production methods to promote the development of cotton production. We must improve the scientific and technological level of cotton planting, reduce production costs, improve the mechanization of cotton production, and reduce labor input. Only in this way can the competitiveness of domestic cotton be improved, and then can we jump out of the strange circle of "cotton prices hurt farmers".