2015 Mainland Xinjiang Cotton Enterprises Situation Is Not Optimistic?

Since 2014

Since the implementation of cotton price subsidy policy, the mainland

Area and output suffered cliff type decline, relying on cotton resources survival of the mainland cotton enterprises are also facing the fate of being eliminated.

In addition to part of the pformation of enterprises, the only way to continue to persist is to gather flowers in Xinjiang.

Last year, cotton prices were high and low. Most enterprises in Xinjiang did not earn money and paid an expensive tuition fee.

And this year, how are these mainland Xinjiang cotton enterprises going to live?

With the double drop of cotton quality and output in Xinjiang this year, and the increasing number of enterprises in Xinjiang, the competition in cotton processing market is fierce.

Even if cotton production was as high as about 6000000 tons last year and cotton quality was good, about 90% of the enterprises did not make profits.

It can be seen that it is not an easy task to clean platinum in Xinjiang. Cotton resources are more intense this year. It is much more difficult for the mainland enterprises to make profits.

Rental and market factors are the main risks, and there are other factors, such as capital, customers and so on.

The first is the high cost of leasing contracts.

At present, the contracting enterprises in Xinjiang mainly adopt the way of commission processing and package operation, and sign an agreement with the local cotton enterprises in Xinjiang. The operation of the package plant is to sign a total lease contract with the local enterprises.

Generally, there are two indicators for entrustment processing, that is, the bottom and processing costs, and the minimum quantity is the minimum. The processing fee includes not only the cost of lint processing, but also the rental cost of the processing plant.

According to the understanding of Hubei Cotton Association, this year's processing guarantee of Xinjiang lint is 4000-5000 tons, and the rental fee of processing fee has dropped from 1050 yuan / ton to 950 yuan / ton. Even so, the pressure of Hubei bag factory is still very large, mainly because the purchasing amount is not up to standard, and the processing party will give the other party certain capital compensation in accordance with the contract.

There is market risk.

Now cotton prices show a downward trend, from acquisition to processing to sales, there is a time course. If the cotton price drops during this period, the terminal sales price may be lower than the cost price.

This year, many enterprises are faced with painful choices. Sales will be faced with losses and losses will be greater. Especially in this year, the quality of cotton in Xinjiang is poor. Most enterprises choose to sell lint in a small loss and not wait for cotton.

It is understood that in recent years, the number of foreign cotton enterprises in Xinjiang has increased year by year. The cotton processing enterprises in Hubei province accounted for 8% of the total purchase volume in Xinjiang, and the trade volume may reach more than 12%, which has a certain influence in the Xinjiang market.

Even so, there were not many enterprises that made profits last year, and this year the situation is not optimistic.

Therefore, for next year's enterprises in Xinjiang, it is an important problem for them to choose which way of cooperation and how to establish a set of operational mode to minimize the risk of enterprise operation. Otherwise, the market rule of survival of the fittest will make other profound lessons.