The Pain Of The Pformation Of Cotton Enterprises In Mainland China! Survival Of The Fittest

Since 2014

After the implementation of the new target price policy, the cotton planting area in the mainland has been decreasing year by year. Cotton enterprises lacking the raw material processing resources of cotton are in trouble. How to solve this problem is a thorny problem faced by many cotton enterprises in the mainland.

According to the national cotton market monitoring system carried out in May cotton sowing area survey showed that in 2015, the national cotton sowing area was 51 million 189 thousand mu, a decrease of 12 million 909 thousand mu compared with the same period, a decrease of 20.1%.

Among them, the sowing area of cotton in the the Yellow River River Basin was 11 million 67 thousand, a year-on-year decrease of 30.8%, and the sowing area in the middle and lower reaches of the Yangtze River was 7 million 947 thousand mu, down 37.2% compared to the same period last year; the sown area in the Northwest inland area was 31 million 499 thousand mu, down 9.4% from that of the same period last year.

Year-on-year decline of 8.7%.

In addition to the relatively stable cotton planting area in Xinjiang, cotton in other areas showed a sharp downward trend.

Shandong Dezhou Wucheng county a cotton enterprise official said, now the local cotton resources are limited, generally are the acquisition of Hebei cotton processing and sales.

At present, only 4-5 enterprises start production, and nearly 40 enterprises fail to carry out the acquisition work normally.

In addition, cotton enterprises are also in a difficult position in the sales link.

The company official said that as of mid December 2015, the total processing of the enterprise this year.

About 1000 tons, while processing 4000 tons of lint last year, down 75% compared with the same period last year. The main reason is that the quality of cotton has declined this year and the demand of downstream customers has decreased.

It is understood that the main length of the local processing cotton lint is between 27-28mm, the horse value is mainly around 5, and the quality of cotton is low, which can not meet customer requirements.

In addition, the textile industry downturn also has a great impact on downstream customer orders.

2015 domestic textile enterprises continue to decline in the rate of start-up, the demand for cotton has been greatly reduced.

According to the national cotton market monitoring system, the domestic production and marketing forecast in November showed that domestic demand for cotton in 2015 was 7 million 150 thousand tons, compared with 7 million 550 thousand tons in 2014, a decrease of about 5.3% over the same period last year.

On the one hand, the amount of cotton in the mainland has dropped sharply. On the other hand, the downstream demand has been decreasing. In the face of the two difficult problems, how should cotton enterprises seek breakthroughs?

First, developing Xinjiang and shifting positions.

At present, Hebei, Shandong, Hubei, Zhejiang and other provinces have gone to Xinjiang packing plant, but the cotton enterprises in 2014 are not running well. Nearly 90% enterprises in Xinjiang have not made any profits.

This year, the situation is not optimistic. If cotton enterprises want to continue to engage in the cotton industry, they can only stick to Xinjiang and have no other choice.

The two is homeopathic pformation.

In Shandong, we found that some cotton enterprises began to pform and buy processed corn and other food crops.

Local cotton professionals said that because of the increased market risk and the lack of cotton, enterprises were forced to pform and buy processed grain.

The three is to sell assets and shut down completely.

Faced with some enterprises that do not have any advantages in equipment, technology, personnel or customers, it is not an ideal choice to quit earlier.

With the implementation and influence of Xinjiang's cotton target price policy, the curtain of domestic cotton enterprises' survival of the fittest is slowly pulling away.

Of course, there are still some cotton enterprises are not ready to stand on the stage, but the market left its buffer time is not much.