Comparative Analysis Of Cost And Profit Of Cotton Production Between China And The United States

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< p > at present, there are mainly three major cotton producing areas in China, namely the northwest cotton region (including Xinjiang and Gansu), the the Yellow River River Basin cotton region and the Yangtze River valley cotton area.

Judging from the change of cotton planting area and output in recent years, Xinjiang is the largest cotton producing base in the country. Although the cotton planting area is less than 40%, its output of cotton exceeds 60% of the whole country.

The target price subsidies in Xinjiang from 2014 to 2015 will undoubtedly continue to consolidate the status of Xinjiang's cotton industry in the whole country.

Among them, the yield of cotton production in Xinjiang Corps is at least 40% higher than that in other regions, and a set of high quality, high yield and efficient cultivation technology has been explored, which has always been the representative of the advanced level of cotton planting in China.

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< p > this paper takes cotton cultivation in Xinjiang corps as a sample: in the process of cotton production, there are mainly two kinds of products, namely lint and cottonseed.

In China, cotton growers and ginning plants usually undertake two parts of cotton cost, seed cotton production cost and lint processing cost.

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< p > the production cost of seed cotton consists of two parts, namely production cost and land cost.

Production costs include direct costs (seeds, ploughing, plastic film, water charges, pesticides, fertilizers, irrigation equipment, fuel power charges, technical service fees, tools and materials costs, repair and maintenance costs), indirect costs (depreciation of fixed assets, taxes, management, finance, sales, insurance (Fang Xinbao)) and labor costs (household labor discounts and employee costs, mainly for field management fees and pick up costs).

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< p > land costs are mainly rents and self rent.

The Xinjiang area is mainly embodied in land contract and management cost.

The Xinjiang Corps adopts the way of paying a certain amount of seed cotton per mu to pay the annual land contract management fee, while the Xinjiang area can pfer the land contractual management right directly by cash.

The cost of land contracting is far lower than the market average for some private and enterprises involved in land contracts earlier and continuously.

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< p > processing costs are mainly borne by cotton ginning plants. In accordance with the methods of independent purchase, self processing and self sale, the general cost includes seed cotton purchase cost, manufacturing cost (electricity, packaging, mechanical maintenance and depreciation, personnel wages) to allocate management fees and share financial expenses.

Because the price of seed cotton purchased by processing enterprises is mainly based on market price, the price of seed cotton is different from that of cotton farmers.

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< p > < strong > US < /strong > /p >

< p > in the United States, processing costs (ginning fees) are directly paid to cotton ginning plants by cotton growers, so the production of American cotton growers refers to the cost of lint production.

Its production cost consists of two parts: operating cost and sharing management cost.

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< p > operating costs include seed, pesticide, fertilizer, irrigation fee, fuel power fee, repair cost, temporary labor and rental costs, cost of rolling, production input and interest.

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< p > the apportionment management fee includes the cost of labor, the opportunity cost of unpaid labor costs, depreciation of machinery and equipment, land opportunity cost, taxes and insurance premiums, and comprehensive farm management fees.

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< p > < strong > the cost of cotton production in China and the United States is less than /strong > /p >

< p > taking into account the differences in cost structure between China and the United States, in order to facilitate comparison, the cost of cotton and cotton embossing is deducted.

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< p > according to the production cost data released by the US Department of agriculture, the US dollar / acre is converted into yuan / kg.

The exchange rate is calculated according to the average exchange rate of RMB against the US dollar in 2013 6.1932.

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< p > from the cost of cotton planting between China and the United States, the cost of planting the Chinese Xinjiang Corps is 3 times more than that of the United States. The labor cost is 21 times the cost of the United States cotton planting, and the direct investment of physical and mechanical inputs is 2.4 times that of the United States. The depreciation cost of mechanical depreciation is 1/4 of the United States and the land cost is 5 times that of the United States.

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< p > the table shows that the cost of planting cotton in China and the United States is less than /p.

< p > because the United States cotton can grow mechanically from planting to harvesting, and China is still in the semi mechanized era in cotton cultivation.

Because cotton cultivation costs more time than other crops, so the labor input is greater, and under the same income, farmers are more willing to choose crops with higher mechanization.

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< p > in the Xinjiang Corps area, although most of them adopt the machine picked cotton planting mode, and 50% to 80% of the divisions use machine picked cotton, but the actual production efficiency is still lower than that of the US level.

The average cotton planting cost is far lower than that of the low cotton field with a higher proportion of machine picked cotton.

It can be predicted that although there are still many problems in the process of actual picking, processing and selling, it has not been fully recognized and accepted by the downstream consumer market. However, with the substantial increase in labor costs, the future use of mechanical harvesting is the general trend.

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< p > < strong > the yield of cotton production in China and the United States is less than /strong > /p >

< p > from the perspective of the benefit of the two countries' cotton production, the cotton production per unit area of Xinjiang Corps is 3.2 times the average yield of the United States cotton, because the selling price of lint cotton is 1.7 times that of the United States cotton, and the price of cotton seed is basically the same. The income of cotton growing in Xinjiang Corps is 5.2 times that of the cotton planting in the United States.

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< p > the cost of cotton planting in Xinjiang Corps is higher, but the comprehensive income is higher than that of American cotton.

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< p style= "text-align: center" > > strong > the table shows that the income of Sino US cotton planting is less than /strong > /p >

< p > note: 1. according to the sown area of American cotton, the yield per unit area is calculated, and the yield per unit area is different according to the harvest area.

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< p > 2.. The lint price of Xinjiang Corps is calculated at 20400 yuan / ton.

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< p > from the profit ratio of cotton main products lint and by-product cottonseed, the yield of cotton in Xinjiang Corps is around 6.8, while the yield of cotton is about 3.9.

Cotton by-products yield higher income in American cotton cultivation.

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< p > if the price per unit area, lint percentage and cottonseed price is calculated in 2013, regardless of the cost of cotton ginning, the cost of cotton planting in Xinjiang Corps will be 14193 yuan / ton, and the cost of cotton planting will be 13395 yuan / ton.

The cost of planting cotton in the United States is slightly lower than that in Xinjiang Corps.

However, the cost of cotton rolling per mu is 104.3 yuan, and the cost per ton is 2363 yuan / ton.

This cost is much higher than that of Xinjiang cotton.

If they do not consider subsidies, the cost of US cotton is comparable to that of Xinjiang cotton and there is no obvious price advantage.

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< p > in addition, the US cotton export to the Far East, plus freight, marine insurance, import duties, value-added tax and other paction costs, the US cotton import cost theory should be higher.

Without subsidies, the US cotton does not have an obvious competitive advantage.

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< p > overall, domestic cotton, especially Xinjiang corps cotton, is basically the same as American cotton in terms of production cost, and its main advantage lies in high output.

The main advantage of US cotton lies in its high level of scale and mechanization.

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< p > from the perspective of industrial policy, China's pilot cotton target price subsidy is gradually separating market prices from subsidies and reducing direct intervention in market prices by policies.

The new US agriculture act is gradually reducing the impact of direct subsidies on US cotton production.

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According to the development trend of global agricultural policy, the trend of green box policy of agricultural policy is more obvious. Under the background of gradually reducing the impact of direct subsidies on the market and trade, establishing a reasonable agricultural insurance system and attaching importance to the combination of agricultural science, technology, production, education and research will gain more advantages in the future cotton trade competition. P

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