Shandong seed cotton acquisition has ended cotton farmers, cotton enterprises infinite desolation

As of December 26, major acquisitions of seed cotton in all parts of Shandong have ended, with only a few 200-type small plants being started and a few cotton brokers acquiring “secondary cotton”. With the acquisition and processing of seed cotton coming to an end, most of the 400 companies concentrate on selling inventory.

In 2014/15, the income of most cotton farmers in Shandong reduced or even failed to recover their capital. According to an old farmer in Wucheng, Texas, this year, 7 mu of cotton was planted. Because of the rainy weather and lightless weather in July-August this year, the cotton production was not ideal. The average yield was only 395 kg/mu. In addition, the price of Shandong cotton dropped sharply this year. To 2.90-3.10 yuan / ton, the average net income per mu is only 395 × 3.0 = 1185 yuan / mu. "This is not enough for our investment." Lao Li said that this year's cotton input fertilizer, pesticides, seeds, irrigation and artificial labor and other spending on the line of 1200 yuan / mu, which is not his own and their family's working hours. Lao Li believes that the risk of cotton is too high.

"I don't know if the situation of the cotton planting in 2015 will be better, but this kind of heartbreaking day will never be considered again." Lao Li said he will firmly no longer grow cotton next year. There are many cotton farmers who have the same ideas as him, including some "big people" and professionals. A “major family” in Liaocheng said that the most sad thing about this year is that no one is interested in seed cotton, and most cotton farmers suffer from “selling cotton”.

"Selling cotton is difficult" is reflected in three aspects: First, ginning factories are scarce and farmers need to travel long distances to sell cotton. Most of Shandong's cotton is responsible for cotton farmers. Generally, the output of one family's seed cotton ranges from a few hundred pounds to more than 1,000 kilograms. The “carriage yak” sells cotton in dozens of places, and the overall cost of manpower, time, and transportation is too high. Second, the price of seed cotton fell sharply. The average selling price of seed cotton in 2014/15 fell by 1.5 yuan/kg compared with 2013/14. This made cotton farmers frustrated and frustrated. What everyone suffered was a cotton “price reduction” that had not been seen in the past 10 years. . Third, since the withdrawal of cotton brokers and other acquisition entities, this year, apart from the acquisition of a handful of ginning factories in Shandong, it is almost impossible to see other acquisition entities.

Some people think that "this is a signal of a downturn in the cotton industry." Due to business difficulties, the ginning factory has a hard time. It is understood that since the current year, Shandong 400 ginning plant operating rate of about 40%, but almost all ginning mill processing volume has reached the level of last year. A person in charge of a factory in Heze said that they processed 1200 tons of lint this year, 13.79% of the 8,700 tons last year. Although the amount of processing is so small, it ends up at a loss. At present, there are still about 500 tons of cotton still sold in their factories, and the average cost is as high as 12,900 yuan/ton. However, according to the current price of 12,800 yuan / ton of cotton in Shandong Province, the cotton is estimated to have a loss of 200-300 yuan / ton.

"So far, about 80% of the companies have stocks, and individual companies have large inventories." A market source said that in addition to previous losses, the pressure of the ginning factories this year is also about 50-70% of the processed lint. It is still being sold in warehouses. Late-stage risks include the "cold" procurement attitude of textile companies and intermediate traders, and the price of cotton may fall in the period of 2-3 months of 2015 and the pressure for companies to repay loans after the end of the year. "Most of the ginning factories this year will suffer a lot of damage. I am afraid there will be no strength in entering the market next year," said the market person.