A few days ago, at the fourth session of the China Cotton Association and the national cotton situation analysis conference, Wang Jianhong, vice president and Secretary General of the China Cotton Association, said that the weather was basically suitable for cotton growth in 2019, and the level of mechanized planting was improving. However, cotton production in China decreased.
The main reason for the decline is mainly the decline in the planting area in the mainland. According to the statistics of China Cotton Association, in 2019, the total area of cotton planting in China was 48 million 155 thousand and 900 mu, down 1.77% from the same period last year, with a total output of 5 million 906 thousand tons, a decrease of 3.35% compared with the same period last year. Among them, the planting area in Xinjiang increased by 0.2%, the output decreased by 1.9%, the planting area in the Yellow River drainage area decreased by 6.82%, the yield decreased by 9.8%, the planting area in the Yangtze River Basin decreased by 8.65%, and the output decreased by 11.3%.
Wang Jianhong said that in recent 5 years, China's cotton planting area has been broken evenly in the three major cotton areas, and Xinjiang has an obvious advantage. In 2018, the Yellow River basin only accounted for 13.65% of the cultivated area, 11.39% of the Yangtze River Basin, and less than 30% of the mainland. Cotton production has gradually shifted to Xinjiang, and the scale and mechanization level has been further upgraded. Cotton output in Xinjiang has reached a record high of 5 million 110 thousand tons in 2018, an increase of 39% compared with 3 million 677 thousand tons in 2014, and in 2018 it accounted for 84% of the country's total output.
However, on the one hand, cotton planting area decreased and output decreased. On the other hand, due to increased inventory and reduced demand, the pressure of cotton textile enterprises in 2019 was still higher than in previous years.
Since September this year, the price of cotton seed purchased by enterprises has decreased significantly. By the end of November, cotton picking in the whole country was over, and the sales progress was 92.4%, slowing down by 1.85 percentage points compared with the same period last year. The average purchase price of seed cotton is 5.56 yuan / kg, down 18% compared with the same period last year. Among them, the purchase price of Xinjiang was 5.47 yuan / kg, down 19.1% compared with the same period last year, and the purchase price of cotton seed in the mainland was 5.91 yuan / kg, down 14.5% compared to the same period last year.
Wang Jianhong said cotton terminal demand fatigue is continuing to lead to the upstream. In order to reduce inventories and increase liquidity, the sales volume of textile enterprises is mainly based on quantity and prices are short of support, which has continued to fall. This has led to shrinking profits and increasing operating pressure.
According to the China Cotton Association data, from 2019 to October January, the loss of cotton textile industry in China was 28.4%, an increase of 11.6 percentage points over the same period in 2018, and the main revenue decreased by 1.84% compared with the same period last year, and the total profit decreased by 10.17% compared with the same period last year.
"China Cotton Association predicts that from 2019 to 2020, cotton consumption will be 8 million 20 thousand tons, a decrease of 50 thousand tons compared with the previous year." Wang Jianhong believes that the overall recovery of cotton industry in the future can be expected, especially for China's cotton market, which is likely to lead the market of other countries. "Confidence comes mainly from the fact that the world economy is changing steadily, but China has huge consumption potential. But at the same time, it must also face challenges such as instability in the world economy, uncertainty, complex domestic and international situation, and external pressure. China's cotton industry should also develop towards high quality." Wang Jianhong said.
Gao Fang, President of the China Cotton Association, said that China's economy is shifting from a high growth stage to a high quality development stage. The development of China's cotton industry needs to focus on solving the imbalance between output and quality, unbalanced interests in all aspects of the industry chain, small scale, high cost, and insufficient innovation capability.