Not long ago, the cotton industry in Xinjiang caused people's attention due to the implementation of a new reform. Xinjiang Tianfu Cotton Supply Chain Co., Ltd. (hereinafter referred to as “Xinjiang Tianfuâ€) has been widely concerned in the industry. This company, which focuses on building a complete cotton supply chain, will not only promote the textile and garment industry downstream of the cotton industry, but also help the company to reduce production costs. It will also improve the sales of cotton in the region by creating a complete logistics and trading platform. Bargaining power to increase the income of farmers growing cotton.
The most striking thing is that Xinjiang Tianfu is a brand led by the global color spinning industry. Huafu Color Spinning and Xinjiang Cotton Industry Group Co., Ltd. (hereinafter referred to as “Xinmian Groupâ€) belong to Jiashi, Yuepu Lake, Yecheng and Ze. Pusi County Cotton Industry Co., Ltd. and Xinjiang Cotton Trading Market and Aksu Mianma Station have been reorganized. State-owned enterprises and private listed companies have joined hands to build a mixed-ownership enterprise in the domestic cotton industry. The resources, technologies and markets of both parties are mastered. The advantage has created its innate strength.
Reform and upgrading of the cotton industry
In 2014, Xinjiang officially launched the pilot project of cotton target price reform, and no longer implemented the temporary cotton purchasing and storage policy that has been in use for many years. The price of cotton is determined by the market. The cotton production method that is accustomed to the bottom of the country has come to an end. After leaving the national protection price, the cotton market price in Xinjiang has dropped sharply compared with the previous one, and the cotton production efficiency has been tested. In order to improve the quality and efficiency of cotton production, since last year, the autonomous region has issued relevant guidance, reducing cotton planting area within the region, and guiding cotton to gradually withdraw from the secondary cotton area and the risk cotton area, and then to the high-yield cotton area. The adjustment of the planting structure in the whole district, which is mainly based on cotton reduction, has begun.
Cotton production is undergoing the test of market and efficiency. However, the cotton production in the whole district has been scattered for many years, and the phenomenon of farmers and downstream industries is out of touch. It also restricts the improvement of farmers' benefits to a certain extent, especially the price-oriented cotton planting. Mode, more cotton benefits have left hidden dangers. According to industry insiders, there are currently more than 50 varieties of cotton planted in the region. The demand for cotton planting and downstream enterprises has not been well connected. This has caused the decline in farmers' planting efficiency and created obstacles for downstream enterprises to purchase raw materials. The barriers between raw material planting and processing and sales are very important for the overall improvement of the cotton industry.
Complementing the advantages and building the whole industry chain
Huafu Color Spinning has become one of the world's largest suppliers and manufacturers of color spinning yarns. Xinjiang has always been an important raw material procurement base for Huafu Color Spinning. The annual cotton purchased from Xinjiang accounts for two-thirds of the cotton consumption of enterprises.
In April of this year, Huafu Color Spinning released the development plan for the next ten years (2016-2025). The outline proposes that in the future, it will transform from the world's largest color spinning manufacturer and supplier to the global textile and apparel industry fashion operator.
Sun Weiting, Chairman of Huafu Color Spinning, said that in order to achieve this transformation goal, enterprises should be required to build all the links from retailing, branding, clothing, fabrics, yarns and fibers to the whole industry chain. Spinning yarn, a "chip" known as the driving force of fashion in the industry, under the support of Internet technology, stringed up the entire industrial chain of cotton, providing strong support for the transformation. The establishment of Xinjiang Tianfu is one of the key battles for the implementation of the Huafu Color Spinning Decade.
For the New Cotton Group, opportunities are equally rare. Xinmian Group is one of the largest cotton trading and distribution enterprises in Xinjiang. It has 38 wholly-owned and holding companies and 121 ginning factories. It has 6 large-scale professional cotton transfer storage stations.
The cotton resources owned by the New Cotton Group is the “Tiantou†resource that Huafu Color Textile hopes to obtain. It is the front-end industrial chain that enterprises urgently need to improve. The resources of Huafu Color Spinning are cotton for the New Cotton Group. The extension of the downstream industry and the reorganization of the two companies have enabled the originally broken industrial chain to achieve convergence.
Xiao Yuqing, secretary of the Party Committee and Chairman of the New Cotton Group, said that the restructuring will help to achieve complementary advantages between the two companies, achieve production and marketing docking, and jointly enlarge and strengthen the cotton industry. With this opportunity, the New Cotton Group has not fully utilized the advantages of the cotton industry assets. After loading into the new target company, it can realize the preservation and appreciation of existing assets and maximize the vitality of assets.
Development space behind the industry chain
After the reorganization, Xinjiang Tianfu has formulated an ambitious development plan: it will realize 1 million tons of cotton trading volume within 3 years, and own 100 ginning factories to realize independent listing of the company.
What is the concept of 1 million tons of cotton trade? According to the 2015 data, 1 million tons is almost one-sixth of the country's annual cotton production. Also in 2015, Xinjiang's total cotton output was 3.503 million tons. Huafu Color Spinning consumed 300,000 tons of cotton throughout the year. It purchased 200,000 tons of cotton from Xinjiang. One million tons for Huafu Color Spinning and Xinjiang Cotton Industry are not. A small number.
What kind of benefits will such a large amount of cotton produce? Sun Weiting said that after the cotton industry chain has been opened, the upstream and downstream of the industry will be firstly docked. The raw materials for the production of the enterprise will be fully protected, and the risk of the cotton farmers will be resolved. In the future, Xinjiang farmers will be based on orders. Choose suitable cotton varieties for planting, meet the processing needs of enterprises, and improve the efficiency of cotton planting.
The greater benefits are hidden in the supply chain formed after the industry chain is continuously improved. This supply chain not only covers the production and processing of cotton, but also extends to the logistics, warehousing, agriculture and other fields associated with it. Sun Weiting said that a perfect cotton supply chain will form a gathering of cotton resources. Enterprises can improve their revenue and profitability through the trade gap between the supply chain and the trading market platform, the difference in investment rent, loan spreads, and modern services such as logistics and information. . At the same time, the mature supply chain will attract more ginning factories with certain strength to join, and realize the gathering and circulation of cotton resources through modern management methods. According to preliminary estimates, according to the average annual average, the completed cotton supply chain will generate about 20 billion yuan of income every year, and realize the whole industry link from cotton to textile and garment, which will create a broader development for the development of cotton industry in Xinjiang. Expansion capacity.
Highlight presentation
1. State-owned enterprises and enterprises will join forces to realize the preservation and appreciation of existing assets and maximize the vitality of assets.
2. The state-owned enterprises and enterprises reorganized to build a whole industrial chain from cotton planting to textile processing, realizing the deep connection between raw material production and intensive processing, and realizing the integrated operation mode of cotton production, sales and processing.
3. The integration of resources by state-owned enterprises and private enterprises to form a cotton supply chain not only satisfies the demand for processing cotton for enterprises themselves, but also attracts more downstream processing enterprises to diversify the operating benefits of cotton and further increase the added value. At the same time, the cotton logistics, trading and warehousing system of the supporting construction will also build a fully functional cotton trading market, thereby improving the bargaining power of cotton sales in Xinjiang and improving the planting efficiency of cotton farmers.
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