Promoting Development: The Development Of Peru'S Textile Industry Is Supported By Latin American Bank

Recently, the Latin American Development Bank has signed an agreement with Arequipa, southern Peru (Arequipa), to promote the development of private enterprises in the region, including the camel hair textile manufacturing industry and the clothing industry.

A statement by the government of Arequipa showed that the agreement was signed between Arequipa and Peru's representatives of the financial institutions in Arequipa at the SME summit. The agreement shows that through the cooperation with the camel textile and garment manufacturers from the state and private enterprises, and through the help of Peru countries and regions, we can seek to enhance the competitive edge of enterprises in Arequipa. Silva, the representative of the Latin American Development Bank, said the signing of the cooperation agreement represents Peru. Latin American Development Bank The extension of cooperation will take concrete measures to promote the sustainable development and healthy competition of SMEs in the future.

Due to limited cotton production, Peru's domestic cotton can only meet 40% of the domestic textile industry's demand, and the remaining 60% depend on the international market, especially from the United States. According to the Ministry of foreign trade and tourism of Peru, there are 350 thousand employees in Peru's agricultural textile industry, and the cotton industry accounts for 1.6% of Peru's gross national product.

Jose Ignacio Llosa, chairman of the SNI of Peru's Ministry of social industry, said that at present, the low yield of cotton has affected the development of Peru's textile industry chain. There are some structural problems in cotton cultivation in Peru, resulting in low yield of cotton. Peru's Agricultural Irrigation Department (MINAGRI) is making every effort to solve it, but so far it has not shown positive results. In response to this situation, the government of Peru has taken some new initiatives to promote the development of the cotton industry and textile and garment industry in the country.

　 International experts "consultation Prescriptions"

Jose Ignacio Llosa indicated that the reasons for the decline in cotton production included the small-scale farming methods of Peru cotton farmers, low mu yield, insufficient gene planting, lack of funds, and informal planting. The low output of cotton in Peru has greatly affected the development of 450 thousand direct jobs and 1 million 500 thousand indirect jobs in the Peru spinning industry and the entire textile industry chain.

To change this situation, a team of experts from Brazil and Peru agricultural food organization (FAO) recently inspected the development of Peru's cotton industry and provided solutions to promote its development. The visit is part of the international cooperation program of the Brazil agricultural food organization, which aims to help Peru improve the income of local farmers through this investigation. The team consists of experts from the Brazil Academy of Agricultural Sciences, Brazil Agricultural Research Corporation, Brazil foreign trade cooperation agency, FAO Regional Office in Latin America and the Caribbean, and Peru food and agriculture organization. The project is mainly aimed at Lan Bajak, Saint Martin and other areas in Peru. The delegation will also provide concrete solutions for cotton growers to increase cotton production, processing and processing cotton fibers according to the actual situation in Peru.

Formulating cotton production plan

According to the US Department of agriculture survey data, Peru reached a record of 89 thousand tons of cotton per year in 2006, but in 2010 the crop yield dropped to 25 thousand and 600 tons. In 2011, the recovery rate increased to 46 thousand and 900 tons, and 2012 2012, cotton production was 38 thousand and 500 tons, down 12% compared to the same period last year.

Peru's agriculture minister, Milton von Hesse, said the Peru government will work out 6 plans to increase the output of cotton in the country and promote the export of Peru's cotton. The proposal was put forward by the delegation of experts from Brazil and the representative of Peru agricultural food organization to formulate the "national competition plan" and take various measures to increase cotton production in Peru. Milton von Hesse indicated that the low utilization rate of improved cotton seeds and scientific planting technology is the main reason for the reduction of cotton yield.

The "national competition plan" hopes to help Peru out of the low yield predicament of cotton in 4 months and formulate the next 5 year plan to promote industrial development. The Ministry of agriculture of Peru said that the "national competition plan" is a long-term plan, which will enhance the application of science and technology in Peru's cotton industry chain and raise the income of Peru cotton farmers.

　 Cotton industry seeks government subsidies

Peru cotton imports are mostly from the United States, and Cesar Zapata Alzamora, chairman of the Piura cotton production association in the northwestern part of Peru, said that the United States government provides direct financial subsidies and credit subsidies to its cotton farmers' exports and sales of cotton. Therefore, the US cotton continues to enter Peru with subsidized prices, and its cotton price is lower than that of Peru's cotton price.

The cotton production association of Piura region in Peru has previously subsidized the loss of interests caused by bad competition brought to the local cotton farmers by importing American cotton. Cesar Zapata Alzamora, chairman of the Piura cotton production association, said: "it is very important to apply for financial subsidies to local cotton growers. Joint NGO of Peru national cotton production association, Anti-dumping subsidy Committee The national defense competition and intellectual property protection institute appealed, hoping to grant subsidies to local cotton farmers.

The Peru government has asked Peru's national defense and competition protection and Intellectual Property Protection Association (INDECOPI) to prepare a detailed data analysis on the Levy of countervailing duty on imports of cotton from the United States. The Peru anti-dumping and Investigation Commission also hoped that the Peru government would levy a 10% countervailing duty on imports of US cotton because they thought it was causing Peru cotton to lose its price competitiveness in the market. And the reasons for planting reduction. The Levy of countervailing duty on imported cotton in the United States will help improve the sale of cotton in Peru's local textile industry, which also affects the development of the textile and garment industry in Peru.

Developing new market of organic cotton garments

According to the North American Organic Trade Association (OTA) survey, the production of organic cotton in Peru ranks eighth in the world, and is one of the few producing countries with many varieties of Pima cotton in the world. Organic cotton clothing is a new market that is derived from market segments according to subdivision. Most consumers in the United States pursue innovative designs and healthier products. Peru's organic cotton clothing can attract consumers in the United States and expand a broader market in the United States.

A recent market research conducted by the Peru Trade Office in Losangeles, USA, shows that Peru has the potential to develop into an organic cotton production center. Textile exporters and enterprises looking for unique innovative products will also benefit from this.

The market share of Peru Pima cotton garments in the United States is also increasing. According to the data released by the North American organic trade association, in 2002, Peru exported $69 million worth of organic cotton products to the United States, and by 2012, this figure has increased to $826 million, which means that in the past 10 years, the export volume of Peru's exports of organic cotton products to the United States has increased. Nearly 11 times. If Peru garment exporters and organic cotton clothing manufacturers increase the added value of products and enhance their innovative ability in the area of freight transport, with the increase of the export of cotton products, Peru will become a global one. Pima cotton clothing The possibility of the centre will increase, and at the same time, promote the development of the cotton industry in the country.