Review of Cotton Production in 2012

By CnAgri2013-10-09 11:36:36 Print

According to the State Development Commission, cotton yield and price were 1,373kg/hectare and RMB912/50kg in 2012, suggesting a revenue of RMB29,475/hectare, up 8.94%, 1.06% and 10.4% respectively over the previous year.
 
The cost of cotton production hit RMB29,096/hectare in 2012, an upsurge of 22.97% on the year-on-year basis, mainly because labor cost swelled 40.65% to a level of RMB15,918/hectare. The cost of material and service was RMB8,123/hectare, up just 1.3% on the year-on-year basis. The profit/cost ratio was as low as 1.3%.
 
Due to low returns, cotton acreage shrank 7.18% in 2012 and 5.45% in 2013, falling to 5.183 million hectares and 4.901 million hectares respectively. Cotton acreage reduction mainly occurred in eastern provinces. Cotton production generated a net profit of RMB1.964 billion in China in 2012, a collapse of 88.42% from the previous year.

 From “China Cotton Bi-Weekly Market Report”