At the meeting of '2007 Chinese Cotton Situation' held on October 11 in Jinan City, cotton expert Mao Shuchun from Chinese Academy of Agricultural Science Institute said that country's cotton would enter a higher price era, considering the rise of agricultural resources and labor costs.
According to his analysis, this is the fourth year that will witness rises in both, agricultural materials and labor costs since 2003. The average cost of cotton production has exceeded 900 yuan per mu. The average cost for large growers and Xinjiang Production and Construction Corps has been over 1000 yuan per mu to 1,200 yuan per mu.
Due to the sharp and continuing hike in global oil prices, cash crop of cotton, with largest cash investment, will end its low price period to enter a high price era.
Mao introduced that cotton production means continued to rise this year. As the end of July, cash costs of cotton planting increased 22.3 yuan per mu, up 4.9 percent. Especially in Xinjiang cotton growing area, production means and labor costs kept rising. The estimated cost increased 20 to 50 yuan per mu. Of these, production cost for Xinjiang Production and Construction Corps, drip cotton field and large growers increased 40 to 50 yuan per mu (one hectare equals 15 Chinese mu).
Fibre2fashion, News Desk - China
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