What Is The New Development Pattern Of Cotton Industry?

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The supply and demand situation of the market is high inventory, declining production, reduced demand, low cotton prices, narrowing of domestic and foreign cotton prices, and reduced import of cotton. Under the new market situation, China's cotton industry is facing new challenges and development.

At the 2016 China Cotton Development Summit held in Wuhan in May 12th, experts, academics, government officials and cotton from the major cotton producing countries and regions in the world

Nearly 700 people in the industry have jointly explored how China's cotton industry will take advantage of the new pattern.

Gao Fang, executive vice president of China Cotton Association, said that after a period of rapid development, China's cotton industry needs structural adjustment and necessary recovery. This is a new pattern for China's cotton industry.

Development status of cotton industry in China

Gao Fang said that if we want to find out the development of cotton industry in China, we must start with the output and demand of cotton.

And so on.

At present, the stock of China's reserve cotton is known as "daily inventory".

From 2011 to 2013, the total amount of storage and storage in the past 3 years was 16 million 430 thousand tons, and 6 million 910 thousand tons were put into operation. At present, there are still more than 11 million tons of cotton stocks in China.

According to data from the US Department of agriculture, China's cotton stocks account for more than 50% of global cotton stocks.

In order to digest domestic cotton stocks, the country began to reduce cotton planting area in a planned way.

According to the National Bureau of statistics, the cotton planting area in 2015 is 56 million 980 thousand mu, the lowest in nearly 13 years. The cotton output in the whole country is 5 million 610 thousand tons, of which the output of cotton in Xinjiang is 3 million 500 thousand tons.

With the decline of cotton production, the layout of cotton processing in China has also undergone great changes.

Gao Fang said that China's cotton production was concentrated in Xinjiang and other advantageous regions, which brought about regional changes in cotton processing layout, and the number of cotton processing enterprises in the mainland was relatively reduced.

As of May 10th, data from China Fiber Inspection Bureau showed that 1100 cotton processing enterprises in fair inspection in 2015 were reduced by more than 441 compared with the same period last year.

Among them, 752 enterprises in Xinjiang, accounting for 68% of the whole country, decreased by 53 compared with the same period last year, and 348 mainland enterprises, accounting for 32% of the whole country, down 388 from the same period last year.

Xinjiang cotton notarization test cotton accounted for 91% of the national total.

Domestic cotton prices fall below the main melody.

At present, China's cotton prices are gradually integrating with the international market, and the difference between domestic and foreign cotton prices is gradually narrowing.

In April, China's cotton price index was 12478 yuan / ton, down 6.8% compared to the same period last year. This is because the cotton spot price has returned to the market after the implementation of the target price subsidy policy, and the cotton price has changed greatly.

Gao Yong, vice president of China Textile Industry Federation, said that in the past 4 years, the development of China's textile industry mainly depended on the growth of chemical fiber consumption. In contrast, the proportion of cotton consumption decreased, but the total consumption of cotton fiber in China was not much reduced.

He said: "in 2015, cotton consumption in China was about 6 million tons, which was reduced by about 4 million tons compared with the peak period, but the consumption of about 2 million tons was made up of imported cotton yarn. Therefore, compared with the maximum value, the actual consumption of cotton in China has decreased by about 1000000 tons, and I believe this about 1000000 ton will also be recovered."

Gao Yong analysis, from the end of last year to the last few months, when domestic and foreign cotton price difference was below 1500 yuan / ton, low coarse cotton yarn imports began to reduce, domestic cotton yarn processing began to grow, and domestic cotton yarn exports began to recover.

What is the new development pattern of cotton industry?

China's cotton industry will inevitably face difficulties in the throes of structural adjustment, the digestion period of the previous financial crisis stimulus and the shifting speed of growth.

Gao Fang said that since China's accession to the WTO, cotton production has shown a trend of rapid growth. In 2001, China's cotton production was 5 million 320 thousand tons, during which the cotton production dropped to 5 million 610 thousand tons in 2015.

After 15 years of development, the output of cotton in China has returned to the initial stage of WTO accession.

Cotton demand is also the same. In 2001, China's cotton demand was 5 million 660 thousand tons. During the period of growth and decline, the demand for cotton in China was 7 million 80 thousand tons in 2015, according to the data released by the United States Department of agriculture (most of the industry thought it was about 6000000 tons).

"These two aspects are all an interesting regression," she said. "From production to demand, we are back to the level of the beginning of this century."

In this regard, Gao Fang believes that after a period of rapid development, China's cotton industry needs structural adjustment and necessary recovery, which is a new pattern for China's cotton industry.

Under the new pattern, the state strongly promotes structural reforms on the supply side.

Dai Gongxing, President of China Cotton Association, said that China's cotton and textile industry is also facing serious structural contradiction between supply and demand. As far as cotton industry is concerned, its price is not competitive, and its quality is difficult to meet the needs of downstream textile enterprises.

The goal of the supply side reform of cotton industry is to enhance the quality of cotton, make cotton production meet the needs of consumption upgrading, and promote the matching of supply and demand; two, improve production efficiency, reduce production costs, promote the scale, mechanization and intensification of cotton production, solve the competitiveness of cotton in China from the source; three, promote the pformation and upgrading of cotton circulation enterprises, and improve the efficiency and competitiveness of enterprises.

It is a systematic project to improve the quality and competitiveness of cotton in China. It needs government guidance, industry participation and association promotion, and puts forward the overall development idea.

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Under the new pattern, China's cotton production pattern has changed from the "three pillars" trend of the three cotton regions of the Yellow River, Changjiang and Xinjiang to the situation of gradually shrinking Xinjiang and two inland watersheds in the mainland.

At the same time, cotton processing, distribution and layout of cotton textile industry are adjusting. The traditional cotton growth mode and path are facing challenges. Under the new pattern, we should speed up the pformation of structural adjustment and development mode.

In the field of production, China's cotton production is faced with problems such as "small scale, low efficiency, high cost, aging of agricultural labor force and quickening of land pfer process".

In the field of circulation, it is faced with the problems of speeding up the integration and reorganization of processing trade enterprises.

In the field of textiles, "competition intensifies, survival of the fittest, pformation and upgrading" has become the main theme.

Put quality first in the first place

Cao Xuejun, deputy director of the Department of consumer goods industry of the Ministry of industry and information technology, referred to the future planning and development prospects of the textile industry. As an important raw material of the textile industry, the development of the cotton industry is very important for the pformation and upgrading of the textile industry and the success or failure of the "three products" strategy. The key to the cotton industry now seems to be quality.

Cao Xuejun said that since May 3rd, the total turnover rate of cotton reserves has been around 99%, and the import cotton has achieved a turnover rate of 100%, and some even increase the price by more than 3000 yuan / ton.

It is not difficult to see from the hot degree of the cotton reserve paction that as long as the quality of cotton is guaranteed and the demand of textile enterprises can be satisfied, the demand for cotton is still quite strong.

Besides, the development of cotton industry needs brand.

Not only should we continue to increase the construction of the national cotton brand, but also carry out the regional brand and brand building. We should take the concept of building the golden signboard into the hearts of the people, do a solid job in cotton related work, really do well in quality, improve services and win the trust of consumers, so that textile enterprises and consumers are willing to spend more on domestic cotton.

Cao Xuejun believes that as long as the quality of cotton is good, the consumption of cotton still has broad space.

Cotton is the most important natural fiber and is widely loved by consumers.

Although the consumption of cotton in China seems to be decreasing in recent years, cotton and cotton yarns have been imported, and China's overall consumption of cotton fiber has been maintained at around 10 million tons per year.

In the future, our country will move towards a strong textile power. The scale of the textile industry and the consumption of textile and clothing will continue to grow. This has laid a solid foundation for cotton consumption.

Gao Yong believes that the decline of cotton quality should be viewed from different angles. From the perspective of China's spinning industry, the spinning and weaving mills in China have been carrying out automation and intelligent pformation in recent years, employing less and less mechanization and increasing the degree of mechanization. Therefore, the demand for cotton fiber is getting higher and higher.

For this point, the summit clearly pointed out that the cotton industry should change its development mode from heavy quantity to heavy quality, which is good news for the spinning industry.

Gao Yong said that during the "13th Five-Year" period, the domestic cotton consumption could be restored to 7 million 500 thousand tons per year.

"The growth rate of 1 million tons in 5 years is not high, but this is a prediction and expectation based on the current state of raw material inventory, the difference between cotton prices at home and abroad, and the situation of international cotton cultivation and production over the years."

Dai Gongxing said: "under the new pattern, the cotton industry needs to uplift the spirit, face difficulties directly, and strive to explore the way to adapt to the new normal.

That is, we need to deepen reform, adjust the structure, enhance the quality, innovate the production and operation mode, and promote the pformation and upgrading of the entire industry. We should start with the reform of the supply side to produce cotton suitable for the textile industry and realize the healthy development of the industry.