Cotton industry: Embedding high quality from the planting end
Nowadays, pure cotton life has increasingly become a consumer trend. The yield and quality of cotton directly affect the progress of cotton textile enterprises and the experience of consumers. Since the implementation of the cotton target price reform pilot policy, my country’s cotton prices have returned to the market, cotton farmers’ income has been guaranteed, market demand has tended to improve, and the international competitiveness of cotton textile enterprises has significantly enhanced. But at the same time, problems such as the lack of high-quality cotton supply, the high cost of cotton planting, and the lack of momentum among cotton textile finishing companies still need to be solved
Recently, the 2017 China International Cotton Conference, hosted by the China Cotton Association and the National Cotton Trading Market, was held in Chongqing. Many representatives from the cotton textile industry attended the meeting. After several market fluctuations, the domestic cotton industry is seeking new ways to reshape the future of the cotton industry.
Target price reform is showing initial results
At the beginning of this year, the National Development and Reform Commission and the Ministry of Finance announced the “Notice on Deepening the Cotton Target Price Reform” and continued to implement the three-year cotton target price reform pilot policy from 2014 to 2017. , the cotton target prices determined every year are 19,800 yuan, 19,200 yuan, 18,600 yuan, and 18,600 yuan per ton respectively. The overall trend is downward, and the price difference between domestic and foreign cotton has narrowed significantly. “The linkage with the international cotton market has increased. In 2016, the price difference narrowed to 1,260 yuan/ton, and the price difference will be even smaller this year.” Ke Bingsheng, president of China Agricultural University, said that the gradual formation of a separate price subsidy mechanism has reduced a lot of cost burdens for downstream fabric companies. .
“The sown area of cotton has reached a low point since the reform and opening up.” Ke Bingsheng said. According to data released by the National Bureau of Statistics, in 2016, the national cotton sown area was 50.642 million acres, a decrease of 11.1% from 2015, and the national total cotton output was 5.343 million tons, a decrease of 4.6% from 2015. The cotton planting area has been successfully reduced, the output has declined, and the continuous selling of stocks has brought the high inventory to a reasonable level, and the cotton supply and demand relationship has become more balanced.
At the same time, the quality of domestic cotton has been significantly improved. Zhang Zhiyang, vice president of Henan Chaoge Fabric Group, said that market guidance is working, and cotton producers are paying more attention to improving the quality of cotton. The main producing areas of Xinjiang and other places have improved in terms of seed selection, cultivation mode, cotton finishing and transportation, etc. The high-quality cotton produced has also become the first choice of some mid-to-high-end cotton textile companies.
Market awareness in the upstream and downstream industries has increased. Farmers pay more attention to marketability when choosing cotton seeds, and ginners pay more attention to subdivision levels. The cotton industry after a “cold winter” has begun to pick up. Ke Bingsheng gave a set of data. Last year, my country’s cotton fiber finishing volume increased to 7.15 million tons, a year-on-year increase of 6%. Foreign cotton imports dropped to 960,000 tons, a year-on-year decrease of 42.5%. Cotton yarn imports dropped to 1.97 million tons. , a year-on-year decrease of 16.1%.
“Policy changes have brought about adjustments in production and finishing layout, and the market has fluctuated several times, and the fittest in the industry have survived.” Dai Gongxing, president of the China Cotton Association, said that during the pilot period of the cotton target price reform, the overall operation of the cotton industry was stable. The income of cotton farmers has been guaranteed. In the next five to ten years, China’s cotton output is estimated to be no less than 5 million tons, which can meet two-thirds of the fabric market demand.
High-quality cotton is still a shortcoming
“The quality of domestically produced cotton is generally better this year, but high-quality cotton is still lacking.” Zhang Zhiyang said that with the transformation of domestic fabric companies, the demand for high-quality cotton in the downstream of the cotton industry chain continues to increase. , but the domestic production of high-quality cotton is difficult to meet the increasing demand for fabric consumption.
At the same time, the high-quality cotton in the cotton reserves continues to decrease, and fabric companies have strong calls to increase imported cotton. Zhu Beina, president of the China Cotton Textile and Weaving Industry Association, said that Chinese cotton looks to Xinjiang, but the quality of Xinjiang cotton is good, but compared with the mainland, there is still a big gap compared with foreign countries. The high-quality cotton needed by downstream enterprises cannot be met, which has become a “worry” for cotton textile enterprises.
“The low degree of mechanization is one of the main factors affecting the quality of domestic cotton.” Gao Fang, executive director of the All-China Federation of Supply and Marketing Cooperatives, said that due to reasons such as small production scale and low land intensity, advanced cotton The domestic application of cotton planting technology is restricted. In terms of mechanization level, Xinjiang’s mechanical harvesting rate is only 31%, of which 70% is produced by the Production and Construction Corps. In the Mainland, manual harvesting is the main method. The resulting problems of chemical fiber, hair and other foreign fibers have been criticized. At the same time, manual picking increases production costs. At present, the total cost of growing local hand-picked cotton in Xinjiang isAn area of acre amounts to about 2,000 yuan, and the labor cost of manual picking accounts for more than 50% of the total cost. “High costs and low returns. Without subsidies, Xinjiang’s cotton production profits are negative.”
Upstream planting costs remain unchanged. Affected by weak market demand, the momentum of the downstream finishing market is still not strong enough. Many cotton finishing companies have overcapacity. The operating rate of type 400 finishing companies nationwide is only 31%, among which Xinjiang The operating rate is 80%. Luo Lin, a member of the Party Committee of the All-China Federation of Supply and Marketing Cooperatives, said that the industry lacks motivation for innovation and there is still a long way to go from “Made in China” to “Made in China”. Faced with a large market group with spending power, many companies are difficult to provide high-quality products. Quality products and high level service.
Transformation and innovation are key
“The gap between domestic cotton supply and demand will still exist in the future, especially the lack of high-quality cotton, which has seriously affected the competitiveness of the industry. Therefore, we must first spare no effort to improve cotton quality and expand effective and mid-to-high-end supply to meet market demand. “Gao Fang said that there is a process to improve the intrinsic quality of cotton, which requires orderly guidance and governance from policies and markets.
To grasp the quality of cotton, we must start from the planting end and from the source. Cao Huiqing, chairman of the Xinjiang Xiaomianjiao Cotton Farmers Professional Cooperative, suggested: “The establishment of a multi-industry consortium allows consumption to force production. What kind of cotton is needed by the fabric factory, the producer will produce what kind of cotton. Cotton farmers form a production through order production. The planting model of one district, one product, and one county solves the problem of many and miscellaneous cotton varieties, scattered and small cotton farmers, and achieves large-scale production.”
Zhu Beina also believes that China’s cotton production needs to follow the path of intensive and large-scale production, and it is necessary to encourage advanced production methods and technologies to effectively reduce costs. “Currently, some cotton textile companies have rapidly transformed, and digital production is making great strides. Chemical fiber production technology is at the forefront of cotton textiles, and its progress will definitely promote the technological progress of cotton textile companies.”
Emphasizing quality means emphasizing brand building. Sun Xiaoting, president of the Cotton Consumption Branch of the China Cotton Association, said that the market is pregnant with a turnaround in the downturn. The improvement of cotton production quality and efficiency can not only promote the transformation and upgrading of the cotton industry, but also promote the progress of fabric companies. Fabric products The added value will be improved, which will help eliminate backward production capacity, develop mid-to-high-end cotton products, and create well-known brands.
In addition to properly handling the relationship between supply and demand, connecting production and marketing, and “reshaping the future of cotton,” Luo Lin suggested that the “two hands” of the government and the market need to be coordinated to further Deepen the reform of cotton target price. In addition, we need to find a way out through innovation. “Whether it is ‘Internet + Agriculture’ or the progress of online and offline integration, innovation at all levels will inject new vitality into the traditional cotton industry and stimulate the innovation vitality and potential of the entire industry.”
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