Wang Wanxiang Of China Cotton Group Talks About 20% Decrease In Cotton Planting Area In The Mainland

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Net Xiaobian to introduce the Chinese cotton group Wang Wanxiang: Mainland cotton planting area decreased by 20%.

In October 18, 2014, the Zhengzhou mercantile exchange held the "2014 Zhengzhou agricultural products (cotton) futures forum" in Zhengzhou.

The forum aims to explore ways and means of innovating agricultural products futures to serve the real economy, giving full play to futures market functions and promoting sustained and healthy development of agricultural industry.

Ho sum futures was invited to cover the meeting.

Wang Wanxiang, general manager of China cotton group, said that since the announcement of the target price reform policy, the cotton planting area in the mainland has dropped significantly, which has dropped by about 20% this year, while Xinjiang is basically the same as last year.

The following is a record:

Wang Wanxiang: Hello, everyone! Thank you very much for giving me the opportunity to participate in this forum. Our cotton group is committed to the circulation of cotton and is committed to the industrialization and internationalization of the cotton industry.

This year, the government launched the pilot project of target price, which has been spoken by many leaders in the morning. Its purpose is first to ensure the profits of cotton farmers, while paying attention to the market to form prices, reasonably guiding production, circulation and consumption, and promoting the competitiveness of our textile enterprises. In general, it wants to make the whole industry coordinate, healthy and sustainable development.

After the pilot started, it should be said that the financial environment of the whole market has undergone significant changes and has significant impact on every link of the industrial chain.

First of all, from cotton planting, this is the first to ensure the income of cotton farmers, but also helps us to grow and optimize the layout of cotton production, and facilitate the mechanization and scale production of cotton. Because it is mainly a pilot project in Xinjiang. Xinjiang is the most important cotton producing area in our country. It is very suitable for planting cotton and is suitable for mechanization and large-scale production.

Judging from the actual implementation, since the announcement of the target price reform policy, the cotton planting area in the mainland has been greatly reduced, which has dropped by about 20% this year, while Xinjiang is basically the same as last year.

This shows that our policy has initially shown some success. Judging from the development of cotton industry in Xinjiang, I think it is in the process of intensive and large-scale production and pformation. In many places, the use of machine instead of labor has reduced the cost and promoted the production of cotton.

Judging from the acquisition and processing of cotton by our company in Xinjiang this year, the number of cotton picking has greatly improved compared with previous years. This also shows that this policy is playing its role.

Of course, I have always thought that the price of the 19800 target is still a little high. The cost of cotton planting is ten thousand three or four, which is about 19800 of the investment return rate. The business is too good. In addition, it is only a little bad to support only one part of Xinjiang. It is open to question. If this continues to happen, the next step is that the domestic cotton will only be left with Xinjiang cotton, and there will be very little elsewhere.

The second aspect is also very helpful for textile enterprises. The main reason is that the market determines prices, which helps to straighten out the price relationship of cotton spinning and make the competitiveness of our textile factories recover and improve.

This is also obvious from the beginning of the new cotton market. The price of new cotton is down all the way after the listing of new cotton, although the price of cotton yarn is also dropping, but the rate of decline is far less than that of cotton.

The profit margin of enterprises should be relatively obvious.

In addition, from the data of customs import cotton yarn, the first two years are about 2 million tons, from April this year should begin to decline, the decline is also more obvious.

In this way, the use of domestic cotton yarn has been greatly improved than before. This is also very beneficial for our cotton textile industry to promote their healthy development.

The third is for us circulation enterprises, I think this is a great good thing, mainly reflected in stimulating the vitality of the market, so that our cotton circulation enterprises can basically return to the main business, but also can promote our market-oriented, modern business model to develop our enterprises.

In the past few years, the circulation enterprises are basically a purchasing processing plant. The cotton is bought and processed and handed over to the central reserve, and the remaining reserves are done. As we have, some of them have international cotton, also have domestic cotton, and some ginning plants. Some cotton enterprises only make domestic cotton, and there are no ginning plants.

After the implementation of the target price pilot, the domestic cotton can be fully circulated in the market.

Therefore, many of our cotton distribution enterprises have returned to the main business of cotton, and at the same time, the market has formed a price. It should be said that our business risk has increased more than before. However, this is just the concept of promoting pformation of business philosophy and changing the need to rely on national policies to develop business, and to develop the business philosophy of marketization and internationalization.

At the same time, we also pay more attention to the quality of cotton purchasing and processing, pay attention to the combination of risk prevention and control, and pay attention to domestic and international cotton management. This will also help us to implement the strategy of going out and participate in international competition.

Finally, I would like to say that as for futures and the circulation of us, I think it also greatly activates the trading of Zheng cotton futures, so that it can really play the function of finding price and hedging, which is very important to us.

Because the domestic market is now increasing in domestic and international price linkage, and the price difference has also been narrowed, but it should be said that there is relative independence in the domestic market. This year, we still need to strictly control imports. This makes our domestic cotton prices not only depend on the price of the international market, but more importantly, I think it depends on the affordability of our domestic textile enterprises and the price we receive from the processing enterprises, and Zhengzhou cotton futures should be the most accurate and accurate market reflecting the cotton market in the domestic market.

So I think that not only circulation enterprises, but also the whole cotton enterprises should make full use of its function of hedging and discovering prices, making our business more robust and risk averse.

In short, I think the goal.

The policy should have a positive effect on all aspects of our industrial chain, although some policy details may still need to be improved, but in general, it should be very useful.

I hope that our cotton growers, circulation enterprises and textile enterprises will achieve win-win development this year.

Thank you!