The New Cotton Industry Structure Is Building In The Mainland Cotton Industry.

From the analysis of the actual planting area and yield of cotton in the real estate area this year, the trend of cotton area and total output in the mainland is declining.

In the past winter, when driving through the main cotton producing areas in Hubei, Hebei, Shandong and Henan, we often see the red brown cotton piled on the earth. The farmers' courtyards in the producing areas are filled with cotton, firewood and cotton shells. These scenes are rarely seen nowadays.

According to Zhao Zide, cotton farmers in the mainland are not very cost-effective now.

Although the purchase price of cotton seed is higher in the mainland this year, the income of planting cotton has increased, but the investment has increased a lot.

After calculating, planting cotton is not as good as planting crops such as wheat, rape or vegetables.

Near the end of the year, driving through Jingchu and Qilu earth, looking at it, it is not a green wheat field, but a dark yellow paddy field. In the past years, there were several cotton sticks that hung in the cold wind.

Shandong Heze grain trader Wang Zhong Shi told the futures Daily reporter that the cotton growing area in the mainland is getting smaller and smaller. The large cotton fields have not been found well, and many downstream cotton enterprises are not shutting down or going out, and the entire cotton industry in the mainland is shrinking.

"Land resources in the mainland are limited. With the advancement of urbanization, the cultivated land that can be used for planting cotton in the mainland is declining year by year.

At the same time, natural resources such as agricultural water in the mainland are also increasingly scarce. For example, Hebei's agricultural water is almost entirely extracted from groundwater.

More importantly, the labour market in the mainland market is in short supply, and the labor cost of planting cotton has increased rapidly.

Zhao Zide, a cotton processing industry in Hengshui, Hebei, told reporters that cotton is planted in the mainland. One is the lack of resources, the two is to invest large and low income.

In the future, the probability of maintaining stable cotton production in the mainland is very low.

In the case of insufficient raw materials, the downstream cotton industry in the mainland will only survive or pform if it wants to survive.

Reporters in the mainland cotton production area interview found that the mainland cotton planting area and production stability remained more and more difficult.

Because of the shortage of land and many people, the farmers in the mainland are characterized by small scale and punctuated cotton. They are simply unable to carry out mechanized operations of cotton planting, spraying, fertilizing, watering and picking. The production of cotton in the mainland is still mainly manual labor, which is time-consuming, laborious and laborious, which makes it difficult for cotton production to be highly subsidized.

In the real estate area, it is inevitable that farmers should turn a large number of cotton fields into wheat fields, rape fields and spring corn fields.

In December 20th, the national cotton production statistics released by the National Bureau of statistics showed that cotton output was 5 million 343 thousand tons this year, a decrease of 4.6% tons compared with 260 thousand tons in 2015.

Overall, the reduction of planting area is the main reason for the reduction of cotton production this year.

Following the decrease in cotton planting area in 2014 and 2015, this year it continued to decrease.

This year, the cotton planting area in China is 50 million 642 thousand mu, a decrease of 6 million 308 thousand mu compared with 2015 and a decrease of 11.1%.

According to the regional perspective, the cotton planting area in Xinjiang decreased by 1 million 488 thousand mu compared with 2015, and decreased by 5.2%. The cotton planting area in other provinces decreased by 4 million 820 thousand mu and decreased by 17%.

What is worth the market concern is that the the Yellow River and Yangtze river basins are mainly divided into cotton growing areas.

Continuation of the trend of more reduction in production in 2015.

Among them, the cotton area in the the Yellow River River Basin decreased by 2 million 217 thousand mu, down by 14.3%.

Although the yield per unit area increased by 63.3 kg per hectare and increased by 6%, the total output decreased by 100 thousand tons and decreased by 9.2%.

The cotton area in the Yangtze River Basin decreased by 2 million 411 thousand mu, a decrease of 19.8%, while the per unit area yield decreased by 68.3 kg per hectare and decreased by 5.9%, resulting in a total reduction of 230 thousand tons in cotton production and a decrease of 24.6% in this area.

"The continuous decline of cotton planting area and output in the mainland has made it difficult for downstream industrial enterprises to survive, resulting in an increasing risk of cotton business, which is mainly due to excessive volatility in raw material prices."

In the first half of this year, a large number of industrial enterprises suffered losses in the first half of this year. One of the important reasons is that these enterprises have too little cotton resources in hand.

Because of the shortage of supply resources and fast price changes, many downstream enterprises dare not store up cotton in large quantities.

And when cotton prices continue to rise, these downstream businesses lose market initiative, and the procurement contracts for raw materials are often defaulted.

According to the reporter's understanding, due to the shortage of cotton resources and the increase of labor costs, the downstream industries of the inland producing areas are developing slowly. Many large and medium-sized cotton enterprises have begun to move out. First, they have entered new factories in Xinjiang, and the two is to set up factories in Southeast Asia.

"Taking into account the production costs of electricity, labor and taxes, many textile enterprises, especially large and medium-sized enterprises, are pferring their production capacity to foreign countries, such as the leading enterprises of color spinning in Jiangsu and Zhejiang provinces, and have built factories in the United States and Vietnam.

Compared with China, the cost of production abroad is lower, and those enterprises built abroad will certainly not buy domestic cotton as raw materials, and some of their products will also be pported back to domestic sales.

Zhou Dalong said that from the current layout of the domestic textile industry, the trend of textile industry migrating to Xinjiang and abroad is more obvious. For example, when factories are built in Xinjiang, the local government adds all kinds of subsidies to the enterprises, which is equivalent to the reduction of production cost per ton of cotton yarn by about 3000 yuan.

For mainland textile enterprises, this is very attractive.

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