China Cotton Production in 2012

By CnAgri2012-11-28 10:59:31 Print     BOABC estimates that China’s planted cotton acreage and cotton production may be 5.234 million hectares and 7.516 million MT respectively this year, down 6.27% and 2.68% respectively from last year. Xinjiang’s cotton production is about 3.774 million MT, up 8.3% on the year-on-year basis.
 
    Thanks to favorable weather, cotton yield averages 1.44 MT/hectare this year, up 3.83% over last year.
 
    Seed cotton procurement price averages RMB8,365/MT this year, up 0.22% on the year-on-year basis. Cotton seed price averages RMB2,205/MT, up 0.3% on the year-on-year basis. The output value of cotton is RMB27,375/hectare this year, up 2.53% on the year-on-year basis.
 
    Considering the growth of labor cost and fertilizer cost (5.19%), cotton production cost averages RMB25,428/hectare this year, up 7.47% on the year-on-year basis.
 
    Calculated by the government’s farm product cost and yield data, farmers’ cash income from cotton production is RMB16,321/hectare this year, down 2.97% on the year-on-year basis. The net profit of cotton production is RMB1,947/hectare, down 35.91% on the year-on-year basis. The profit/cost ratio of cotton production is 7.66%, down 5.18% on the year-on-year basis.
 
    By comparison, grain production generates RMB9,054/hectare yields and RMB2,475/hectare net profit this year, down 6.01% and 34.19% respectively from last year. The profit/cost ratio of grain production is 16.91%.
 
    Xinjiang’s cotton acreage is expected to go up next year, since cotton harvest cost is increasingly reduced by the use of machines. Cotton acreage may go steady in Hubei, Shandong, Anhui and Jiangxi next year on account of a reasonable procurement price, but cotton acreage may shrink in Henan, Jiangsu and Shanxi because of low procurement price.




From “China Cotton Bi-Weekly Market Report”