Cost of Cotton Production in 2012 and 2013

By CnAgri2013-06-05 11:24:53 Print Seed cotton procurement price averaged RMB8,331/MT in 2012/2013, up 1.32% on the year-on-year basis. As cotton yield went up 11.5% last year, the returns from cotton production were RMB29,712/hectare in 2012/2013, up 11.28% on the year-on-year basis. The net profit and profit/cost ratio of cotton production were RMB4,906/hectare and 19.78% respectively, up 61.52% and 54.56% respectively on the year-on-year basis.
 
The total cost of cotton production was RMB25,393/hectare in 2013, up 2.37% on the year-on-year basis. Of the total, fertilizer cost was RMB2,795/hectare, labor cost RMB13,171/hectare and land cost RMB3,570/hectare, down 2%, up 2.22% and up 5% respectively on the year-on-year basis.
 
Planted cotton acreage is predicted to be 4.895 million hectares this year, 5.56% less than last year. Specifically, cotton acreage and shrink 10% in Henan, Jiangsu, Anhui, Shandong, Shaanxi, etc. and 1.5% in Xinjiang. Judging by cotton production in the last five years and the trend of cotton yield, BOABC anticipates a cotton production of 7.262 million MT this year.
 
Cotton price is predicted to move up 3% this year over last year, considering growing demand in the market and reduction of cotton acreage. The net profit and profit/cost ratio of cotton production are predicted to be RMB5,058/hectare and 19.92% respectively this year.



From “China Cotton Bi-Weekly Market Report”