Anqing Cotton Area: Small Factories Have Replaced Dachang As The Main Body Of Local Cotton Purchase.

Anqing is the largest cotton producing area in Anhui province. Wangjiang and Susong are the key cotton producing counties in the province. Only one county in seven counties, three districts and two state farms in the whole city does not produce cotton.

Since the implementation of the new cotton system reform, 21 cotton ginning plants have been put into operation in Anqing cotton area since 2006, excluding the administrative division adjustment to Zongyang County in Tongling.

Since the acquisition of new cotton in early September, cotton producing counties in Anqing cotton growing area in Anhui province have been involved in 200 cotton ginning plants purchased by seed cotton, and only 400 Wangchang and Susong have 1 scales.

Compared with previous years, the small factory has replaced Dachang this year as the main body of local cotton purchase.

Due to scale effect and national agricultural issue

The support of the national temporary purchasing and storage policy and the designated use of futures and matching hedging tools have been the main force for the acquisition of seed cotton in Anqing cotton region from 2008 to 2013.

In the year of cotton temporary storage and purchase, the 400 large plant in Anqing cotton area has delivered many quantity and quality reserve cotton for the country.

At the same time, with the scenery of big factories, the 200 small factories have neither the support of the relevant policies such as purchasing and storing, loans and so on, nor can they participate in futures and matching hedging.

In just a few years, the number of small factories in Anqing cotton region has shrunk, from more than 100 at the peak to a dozen now.

However, for a while.

Since 2014, the state canceled cotton temporary.

In the face of complex market competition, many large factories lose the support of state policy, have poor adaptability, weak market operation ability, poor management, and the rapid reduction of resources caused by the low efficiency of cotton planting, resulting in the high cost of purchasing and processing, and the pressure of repayment owing to high investment. Some big factories are out of business, and some big factories are forced to switch.

It is understood that in 2013, 21 large factories in Anqing cotton area were normally purchased and processed, and 44380 tons of lint were publicly tested; 16 in the 2014, 21682 tons in the public inspection, and 7 in 2015.

4000 tons; so far this year, only 2 have bought seed cotton.

Looking back at the 200 small factories that survive, through the brutal market competition in recent years, the market consciousness is stronger, the way to deal with the problem is more accurate, and the time is more accurate. Gradually, they have a firm foothold in the repeated turbulent cotton market, especially after many large factories are withdrawing.

According to the investigation, 2015 cotton mill in Anqing cotton processing factory has the largest quantity of processing and purchasing, and is a small 200 factory in Wangjiang county. The number of lint products is over 2000 tons, while the largest one in 400 type factories is less than 1200 tons.

So far this year, the largest purchase of seed cotton is also a small factory, the quantity of seed cotton has exceeded 1 million jin, and the largest plant is only 800 thousand jin.

Due to the sharp decline in the number of manufacturers entering the big factories, the total quantity of seed mills purchased by small factories must exceed that of large factories this year. Therefore, replacing small factories with large factories in Anqing cotton area is not only a contrast of the number of manufacturers, but also a reflection of the actual situation. That is to say, the 400 type factories have no capacity to undertake the main responsibility of seed cotton purchasing and processing.