Xinjiang'S Cotton Industry Has Attracted People'S Attention Due To The Implementation Of A Brand New Reform.

Not long ago, Xinjiang

The industry has aroused people's attention due to the implementation of a brand new reform.

Xinjiang Tianfu cotton supply chain Co., Ltd. (hereinafter referred to as "Xinjiang Tianfu") has been widely concerned in the industry.

The company that focuses on building a complete cotton supply chain will not only drive the downstream of the cotton industry.

Improving quality and efficiency, helping enterprises to reduce production costs, will also improve the cotton sales bargaining power in the whole region by creating a perfect logistics and trading platform, and increase farmers' income in planting cotton.

The most striking thing is that Xinjiang Tianfu is reorganized by the global color textile industry leader brand Huafu color spinning and Xinjiang Cotton Industry Group Co., Ltd. (hereinafter referred to as the "new cotton group"), Jiashi, Yuepuhu, Yecheng, Zapp four county cotton companies and Xinjiang cotton trading market and Akesu cotton and Ma Station 6 enterprises. The state-owned enterprises and private listed companies work together to build a mixed ownership enterprise in the domestic cotton industry.

Cotton industry in reform and upgrading

In 2014, Xinjiang officially launched the pilot project of cotton target price reform, and no longer implemented the cotton temporary purchase and storage policy which has been used for many years, and the price of cotton was determined by the market.

The cotton production way that has been used to the bottom of the country has come to an end. After the price is cut off from the state, the price of Xinjiang's cotton market has dropped sharply, and the cotton production efficiency has been tested.

In order to improve the quality and efficiency of cotton production, since last year, the autonomous region has issued relevant guiding opinions, reducing cotton planting area in the whole region, guiding cotton to gradually withdraw from sub suitable cotton area and risk cotton area, and concentrating on high-yield cotton area.

Cotton production is experiencing the test of market and benefit. However, the cotton production in the whole region has been dispersed for many years, and the phenomenon of farmers' disconnection with downstream industries has also restricted the improvement of farmers' efficiency.

According to the analysis of the insiders, there are more than 50 varieties of cotton planted in the whole region. The demand for cotton planting and downstream enterprises fails to achieve a good convergence. This has not only caused the decline of farmers' planting efficiency, but also caused obstacles to the procurement of raw materials by downstream enterprises, and the barriers between raw material cultivation and marketing of cotton industry have been very important to the overall upgrading of cotton industry.

Complementary advantages to build the whole industrial chain

Huafu color spinning has become one of the largest supplier and manufacturer of colored spun yarn in the world. Xinjiang has been an important raw material sourcing base for Huafu color spinning. The annual purchase of cotton from Xinjiang accounts for 2/3 of the total cotton consumption.

In April this year, Huafu color spinning released its outline for development in the next ten years (2016-2025).

The outline puts forward that the world's largest color spinning manufacturer and supplier will be pformed into the fashion operator of the global textile and garment industry in the future.

Sun Weiting, chairman of Huafu color spinning, said that in order to achieve this goal of pformation, enterprises are required to build all links of the entire industrial chain from field head to shop head, through retail, brand, clothing, fabrics, yarns, fibers and so on. The color spinning yarn is called the "chip" by the industry as the fashion driving force. With the support of Internet technology, the whole cotton industry chain will be strung together to provide strong support for pformation.

The establishment of Xinjiang Tianfu is one of the key battles for Huafu color spinning ten year strategy implementation.

For the new cotton group, opportunities are also rare.

New cotton group is one of the largest cotton circulation enterprises in Xinjiang. It has 38 wholly owned and controlled enterprises, 121 flower ginning plants, and 6 large-scale specialized cotton pfer and storage stations.

The cotton resources that the new cotton group grasps is the "field head" resources that Huafu color spinning hopes to acquire. It is the urgent need to perfect the front-end industrial chain, and the resources of Huafu color spinning is the extension of the downstream cotton industry for the new cotton group. The reorganization of the two enterprises has made the industrial chain of the original fracture achieve convergence.

Xiao Yuqing, the party secretary and chairman of the new cotton group, said that the restructuring will help to achieve mutual complementarity between the two enterprises, achieve docking between production and marketing, and jointly expand and strengthen the cotton industry.

With this opportunity, the new cotton group has not yet made full use of its advantages in cotton assets. After loading into the new Target Corp, it can realize the preservation and increment of the existing assets and maximize the vitality of the assets.

The development space behind the industrial chain

After the reorganization, Xinjiang Tianfu set up an ambitious development plan: 3 years to achieve the volume of cotton trading 1 million tons, with 100 ginning plants to achieve the company's independent listing.

What is the concept of cotton trade volume of 1 million tons? According to the data in 2015, 1 million tons are almost 1/6 of the cotton output in the whole country.

Also in 2015, Xinjiang's total output of cotton was 3 million 503 thousand tons. Huafu color spinning consumes 300 thousand tons of cotton throughout the year. The purchase of 200 thousand tons of cotton and 1 million tons of cotton from Xinjiang is not a small figure for Huafu color spinning and Xinjiang cotton industry.

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What kind of benefits will such a large amount of cotton produce? Sun Weiting said that after the cotton industry chain was opened, the industry's upstream and downstream docking was realized first, and the raw materials of enterprises were adequately protected, and the market risk of cotton farmers was resolved. In the future, cotton growers in Xinjiang will choose suitable cotton varieties according to their orders, so as to meet the needs of enterprise processing and realize the improvement of cotton planting efficiency.

Greater benefits are hidden in the supply chain formed after the continuous improvement of the industrial chain.

This supply chain not only covers the production and processing of cotton, but also extends to many fields such as logistics, warehousing, agriculture and so on.

Sun Weiting said that a perfect cotton supply chain will form the accumulation of cotton resources. Enterprises can enhance their revenue and profitability through the trade gap between supply chain and trading market platform, rent difference, loan interest rate and logistics, information and other modern services.

At the same time, the mature supply chain will attract more ginning plants with a certain strength to join, with the help of modern management, to realize the accumulation and circulation of cotton resources.

After preliminary calculation, the cotton supply chain will be generated around 20 billion yuan per year by the average annual average value. The link from cotton to textile and garment will create a broader development space for the development of Xinjiang's cotton industry.

Highlights appear

1, state-owned enterprises and private enterprises will join forces to realize the preservation and appreciation of existing assets and maximize the vitality of assets.

2, the restructuring of state-owned enterprises to build a whole industrial chain from cotton planting to textile processing, to achieve deep docking of raw material production and deep processing, and to realize the integrated production and marketing processing mode of cotton production.

3, state-owned enterprises and private enterprises integrate resources to form a cotton supply chain, not only to meet their own demand for processing cotton, but also to attract more downstream processing enterprises, so as to diversify the operating efficiency of cotton and further increase the added value.

At the same time, the cotton logistics, trading and warehousing system will also build a functional cotton trading market, so as to enhance the bargaining power of Xinjiang's cotton sales and improve the efficiency of cotton growers.