Dominoes Effect Caused By Low Cotton Prices

At the time when new cotton was on sale, at this time of the year, small traders in the field were buying cotton.

However, reporters recently went to Ji'nan Jiyang county new town and Dezhou Xiajin County cotton production area investigation found that

Business downturn, cotton prices continue to slump, processing enterprises operating rate is very low; many cotton farmers because of cotton seed is not making money, are abandoning cotton planting grain, cotton production area of cotton planting area is decreasing year by year.

Shandong cotton enterprises operating rate is only 20%

For Sun Shizhong, the sale of cotton sold to the state this year is earlier than in previous years.

26, in the new town of Jiyang County, Ji'nan Dongxu cotton Co., Ltd. is ready to send the stored lint has been packaged properly. Sun Shizhong, general manager of the company, told the reporter, "the 120 tons of cotton storage and storage is the third batch of cotton picking and storing cotton purchased this year, and it will be delivered today."

"According to today's batch, the company has 360 tons of cotton this year.

The storage began last November 12th, and this year it was a lot earlier.

Sun Shizhong said that not only the time, but also the situation of purchasing and storing.

Cotton prices last year were higher and then gradually sluggish, and cotton farmers were reluctant to sell. This year, the price of the cotton mills began to decline, and cotton growers did not expect to pick up again.

Looking back like a roller coaster ride in recent years.

Sun Shizhong felt quite a lot: "the price of the previous year is the best, the purchase price of the 4 grade cotton is 7 yuan per kilogram, cotton price began to drop last year, this year has continued the downturn of last year, and the purchase price of the 4 grade cotton is as low as 4.2 yuan a kilogram."

According to reports, over the years, Dongxu cotton industry has been the supplier of many textile enterprises in the province. The sale of lint only to more than 1000 yuan was sold to Wei Qiao the year before last.

But since last year, the amount of cotton used by textile enterprises has decreased significantly.

"Last year, only more than 90 tons of goods were supplied to textile enterprises, and we do not intend to supply this year, all of which are sold to the state for storage and purchase."

In Sun Shizhong's view, this year's market cotton price will not be higher than the state's purchase and storage price.

According to the relevant national policies, the cotton processing enterprises of the 200 type packaging equipment have been abolished in September this year.

Affected by processing qualification, at present, the operating rate of cotton processing enterprises in Shandong province is only around 20%.

Sun Shizhong, who took the opportunity to launch the new 400 type equipment, was glad that if he had not changed the new equipment himself, he would have been eliminated from the market just like any other enterprise. "Nowadays, there are only 4 left in the 400 type processing enterprises in the whole county."

What makes him feel lucky is that there is a national reserve price, which makes the company still have a small profit to make.

Because of low cotton prices and low profits, many cotton processing plants and acquisition sites in new towns have ceased production or even closed down.

Ma Junkai, President of Dezhou Cotton Association, told reporters that Dezhou has 87 cotton processing enterprises certified by the Shandong provincial government, with about 400000 tons of processing capacity, but the current operating rate is only 1/3.

"Frustrated by the cotton farmers reluctant to sell, enterprises do not have raw materials processing, start losing money, do not start work even more money loss."

Large shrinkage of cotton planting area

The downturn in cotton prices caused by the sluggish operation of textile enterprises has also spread to cotton farmers, who have strong feelings of abandoning cotton and growing grain.

On the morning of 26 am, Sun Yuhua, a villager of the new town Bai Jia village, was fertilizing 4 acres of cotton in the field.

"4 mu of cotton, an average of more than 400 Jin, sold less than 5000 yuan.

I can't keep up with my work in Qingdao last year.

Lu Shisheng, mayor of the new town, said that at present, only 10 yuan per mu of cotton is subsidized, while wheat and other grain subsidies are more than 100 yuan per mu.

In the past, farmers queued to sell cotton no longer. Nowadays, the cotton planting area in the whole town is less than 1000 mu.

In Xiajin county and other places, cotton farmers pluck cotton stalks and replant wheat.

In Luozhuang village, Xiajin Town, Xiajin County, the reporter met Zhang Longqiang, a cotton grower who was applying fertilizer to grow winter wheat.

"Feeling cotton is really not profitable, not as good as planting wheat."

Zhang Longqiang said cotton in Dezhou is one season a year, and grain can grow in two seasons.

Moreover, the harvesting and harvesting of grain crops has basically been mechanized. Farmers can go out to work in their spare time. The total income of a year is far greater than that of cotton.

Cotton growers have abandoned cotton crops, resulting in a significant reduction in cotton production in many cotton producing areas.

Take the cotton producing area of Dezhou as an example, in 2008, the cotton planting area was 2 million 890 thousand mu, 2 million 300 thousand mu in 2009, 1 million 550 thousand mu in 2010, 1 million 630 thousand mu in 2011, and 1 million 300 thousand mu in 2012.

"Next year's Dezhou.

The planting area will continue to decrease by more than 15%, and it will be difficult to recover to more than 2 million mu.

Ma Junkai said without worry.