General Situation Analysis Of Australian Cotton

Last month 27, Australia quality

The price quoted is On July ICE+1400, which is very attractive to Chinese buyers.

High-end

Producers need high-end textile materials to protect them, so high-end textile materials on the Chinese market have become scarce products.

In May 3, 2016, the first day of state dumping was observed, and the first "bid king" was the Australian trader who imported cotton.

In recent years, the result of industrial upgrading of China's textile enterprises is that the low-end textile production market is gradually replaced by Southeast Asian countries, and the products produced by China's textile industry are pferred to high-end market (more than 80 products).

Recently, Chinese textile enterprises have become more and more interested in the quality cotton produced in Australia.

The quality of Australia's cotton is also favored by Chinese textile enterprises.

It can be said that cotton producers will concentrate on the competition of high quality cotton resources in the future.

For the high-end textile industry, "get cotton in Australia, the world", this is not false.

In mid April 2016, a delegation from China Cotton Textile Industry Association visited Australia's Mori area. More than ten representatives from cotton textile enterprises and cotton suppliers exchanged in-depth exchanges with the local Cotton Corp on the planting, picking, processing and testing of Australia cotton.

A) production growth is expected to grow.

Australia has always been one of the largest exporters of cotton in the world, and Australia cotton is basically used for export. Its main export destinations are China, Vietnam, Indonesia, Thailand, India and Turkey.

In recent years, with the pformation and upgrading of China's cotton textile industry and the increasing demand for high-quality cotton, Australia cotton has been favored by Chinese textile enterprises for its quality.

According to the data of the General Administration of Customs of China, China imported about 3 million tons of cotton in Australia in 2011~2015, accounting for about 20% of the total imports from the world, a significant increase from 2011.

In 2015, Australia's cotton output was 523 thousand tons, and its net export volume was about 609 thousand tons.

In 1~2 months this year, China imported 20 thousand and 200 tons of cotton from Australia, a significant increase of 668% over the same period last year. It is basically the same as the amount of cotton imported from India, Brazil and the United States. It is the only five country with the largest import volume.

In 2015/2016, due to the decline in quality of domestic cotton due to the purchase and storage in successive years, it can only meet the needs of low-end textile production. There is a certain gap in the demand for high-quality cotton. Australia cotton will continue to receive high attention in order to ensure the high quality spinning requirements.

Since the entry into force of the Sino Australian FTA, trade between the two countries has entered a new stage, and there will be greater cooperation in textile raw materials and textiles in the future.

B) lower planting costs and higher processing costs.

Australia's cotton fields are owned by farmers. There are about 800 cotton farmers in the country, and 3 varieties are planted every year. And 1 new varieties are selected each year to try or improve on the basis of the original varieties.

Compared with other crops, cotton is more competitive. Therefore, when farmers arrange their planting, they will leave the most fertile land to cotton, even if they are not suitable for growing cotton. They prefer to leave the land unused for fallow or to plant other crops.

The average yield per unit area of cotton in Australia is basically close to that of the Xinjiang regiment in our country. Because the cotton planting varieties are very concentrated and the same species are planted in a large area, the same production mode is adopted, so the consistency of the quality of Australian cotton is very strong.

Australia cotton from the site preparation, sowing, watering, fertilization, spraying, to harvest, pportation, processing, packaging have achieved mechanization, manpower investment is less, picking all mechanical picking, efficiency is very high, some farms per capita planting area can reach nearly 10000 mu, planting costs are low, such as 500 thousand acres of farm labor less than 40 people.

At the same time, the harvester will roll up the seed cotton and make about 2.2 tons of seed cotton per roll. The pport truck can pport 12 cotton seeds, about 26.4 tons of seed cotton to the cotton ginning plant at a time.

The processing cost of Australian cotton is relatively high, for example, the wages of the workers in the ginning mill are about 150 yuan per hour. Besides processing, the cotton mill needs to pay extra for the cotton growers, so the total cost of cotton ginning is higher than that of our country.

According to the current exchange rate conversion, the processing cost per Australian cotton is more than 1700 yuan per ton, and the lint cost after processing is about 10000 yuan per ton.

{page_break}

The non official organization of the inspection room of Australia cotton adopts the charging system.

Where is the lint factory decided to send the lint to the inspection institution?

All Australian cotton will be inspected during the selling period.

The cotton samples of Australia cotton were taken by sampling, and the cotton samples were divided into three parts. When the test results of three samples were different, they were marked with the principle of "low but not high".

For the color level test, when the HIV instrument is different from the manual visual result, the result is based on manual observation.

According to the comparative test of the inspection institutions, the higher the color level is, the more obvious the color level degradation is after long storage, but the effect is less.

The experimental results show that compared with the color level, the intrinsic index of cotton is more valuable for spinnability.

There are about 20 Cotton Traders in Australia. The sale of cotton is mainly in three modes: first, pre-sale before planting, and for long-term stable customers, it can even sell cotton after three years;

Second, direct sale of seed cotton from cotton farmers.

Third, cotton growers will sell seed cotton to lint and sell them according to the test index, which can be sold directly to traders or through futures markets.

The sales of the first two models are priced at the base level, and then the premium is added according to the actual delivery quality.

The third model is priced according to the actual quality indicators.

It is understood that Australia cotton cultivation without any government subsidies, but the government attaches great importance to cotton scientific research and technology promotion work, production and research closely, the government in all cotton producing areas are specially responsible for the promotion of cotton technology officials, so new varieties, new technology can quickly be applied in cotton production.

The "improved cotton seed fund" which the government pays a certain amount according to the sale of cotton is used as a fund to improve cotton seeds.

There is only one cotton seed company in Australia.

In terms of planting commercial insurance, the loss caused by hail is underwritten, but there is no guarantee for flood disasters.

The representatives of the Chinese delegation made a comprehensive understanding of the whole process of cotton planting, production, picking, processing and marketing, and indicated that the current cotton structure in China is constantly changing. The domestic cotton market is more difficult to meet the demand for high-quality cotton in the textile industry. The quality of AAO cotton has an advantage and can fill the gap between supply and demand of high-grade cotton in a certain extent.

The representatives hoped that Australia cotton could maintain a stable quality and further enhance its competitiveness in terms of price, thus becoming one of the stable sources of cotton resources in the future development of China's textile industry.

At the same time, it is also expected that Xinjiang cotton will improve its mechanization degree and improve cotton varieties as soon as possible so that cotton spinning enterprises in China can use domestic cotton equivalent to those of Australian cotton varieties.