Downstream industries include: cotton oil, cottonseed meal, cottonseed and so on. Factors affecting the cotton industry: Analysis of the current situation of China's cotton industry development In recent ten years, the openness of China's cotton industry has gradually increased, and the upstream and downstream products of cotton have been hit by the international market in all directions. 1。 Import and export trade of cotton. From the perspective of cotton trade, China's cotton imports have shown an overall growth trend since 1990, especially since 2003, the import growth rate is very fast, and the total import scale has increased greatly. In the case of relatively small cotton export scale, the cotton market as a whole presents an absolute net import state. In 2005, cotton imports accounted for more than 1/3 of domestic cotton consumption, and it was highly dependent on foreign countries. 2. Import and export trade of cotton downstream products. From the downstream products of cotton textile and clothing market, the export volume is increasing year by year, which not only occupies an important position in China's foreign trade, but also occupies a large proportion in international textile and clothing trade. According to the statistics of China Customs, the total import and export value of textiles and clothing in China in 2005 was US$ 654.38+034.634 billion, an increase of 654.38+07.90% over 2004, accounting for 9.47% of the total import and export value of China. The total export value of textiles and clothing in China is11753.5 billion USD, which is 20.69% higher than that in 2004, accounting for 15.42% of the total export value of China. In 2005, the international textile and garment trade only increased by 5%, while China's textile and garment exports increased by 2 1%, accounting for 24% of the global textile and garment trade. 3. Cotton circulation. From the perspective of cotton circulation, after the reform of cotton circulation system, China's cotton purchase has basically been fully liberalized in China. 4. Characteristics of cotton industrial chain. With the gradual liberalization of cotton industry, cotton planting, circulation, processing and many other aspects will be affected by the international market. As shown in figure 1. Theoretically speaking, opening up is not the goal, but the ultimate goal should be to improve the competitiveness of China cotton industry and enhance its value-added ability. So, is China's opening to the outside world really close to this goal? Through analysis, we will find that the opening prospect of cotton industry is not optimistic. The opening of cotton industry has brought about the redistribution of cotton industry interests among related subjects. The final result is that China is a cotton farmer, a circulation enterprise and a processing enterprise. Will be losers. Most of the benefits have been transferred to international cotton producers, cotton consumers and international cotton merchants. The opening process of soybean industry and wool industry in China shows that excessive opening and lack of effective countermeasures have led to the shrinkage of the whole domestic industry, which is a lesson of cotton industry. Second, the theoretical analysis of cotton pricing power In the cotton industry chain, the level and change of cotton and manufactured goods prices is the key to determine the distribution of benefits. So, what is the fundamental factor that determines the pricing power? According to economic theory, the price is determined by both supply and demand. From this perspective, it seems to explain why China's cotton industry is at a disadvantage in pricing power: China is one of the countries with the largest demand for cotton, and the increase in domestic demand leads to a gap between supply and demand, and cotton prices will inevitably rise; China is the largest textile supplier in the world. If the supply of domestic textile enterprises is too large, their prices will inevitably fall. However, it should be noted that in a perfectly competitive market, the law of supply and demand can play an effective role, but in reality, a perfectly competitive market does not exist, and more is an incomplete market. In an imperfect competitive market, the determinants of price are much more complicated. There is a more important factor behind pricing power, that is, the behavior of enterprises. For example, in a year's time, the overall demand for cotton in China is increasing, but at a certain point, due to the purchase restriction of cotton enterprises, the tight supply and demand situation can be alleviated and its price level may be stable. Therefore, on the issue of pricing power, the behavior of enterprises is very important. According to the theory of industrial organization, the pricing behavior of enterprises should be influenced by the following factors: 1. The characteristics of industrial organization structure such as the number and scale of enterprises. The more enterprises there are, the smaller the enterprises are, the weaker their influence in the market and the more passive their price acceptance is. When the number of enterprises is limited and the scale is large, the rights of enterprises in pricing will be enhanced; 2. Degree of product differentiation. The greater the degree of product differentiation, the stronger the irreplaceability of the enterprise, the stronger the market monopoly and the stronger its position in pricing; 3. Horizontal and vertical integration, etc. The degree of horizontal integration actually reflects the expansion of enterprise scale. This actually affects the pricing ability of enterprises by affecting the scale and quantity of enterprises. In vertical integration, enterprises can prevent the risks brought by capital specificity through the integration of upstream and downstream links in the industrial chain. And in the incomplete market, vertical integration is conducive to eliminating the information asymmetry between upstream and downstream and obtaining financing convenience. 4. The system of regulating the behavior between enterprises. In an imperfect competitive market, enterprise behavior is a typical game behavior. Some form of agreement reached between enterprises can, to a certain extent, be a guarantee for coordinating and restraining enterprise behavior. 5. Trading institutions. The price of goods is finally realized through trading behavior, and the degree and way of organization of trading will also affect the formation of prices to some extent. In international commodity trading, there is a way to use the futures market for spot trading, which is essentially that futures prices set the price for spot trading. Then, the development of the selected futures market and the characteristics of futures market participants will have a certain impact on the price level of spot trading. Iii. Analysis of Factors Affecting the Pricing Power of Cotton in China 1. The textile industry in China is highly competitive, with a large number of enterprises and many horizontal enterprises. The degree of vertical integration is generally low. Due to low entry threshold, low exit cost and low technical requirements, the textile industry has experienced a period of rapid expansion in China. By the end of 2004, there were 13900 textile and garment enterprises in China, including 87000 textile enterprises and 52000 clothing, shoes and hats enterprises. Among them, there are as many as 30 thousand enterprises engaged in textile and garment import and export business. The overall market concentration of textile industry is low. According to the statistics at the end of June 2006, there were 6980 cotton textile enterprises above designated size in China. Among them, there are 295 state-owned and state-holding enterprises, accounting for 4. 2%。 The sales revenue of cotton textile industry above designated size in China is 264 billion yuan, and the total profit is 8.365 billion yuan. Among them, the sales revenue of state-owned and state-holding enterprises is 287 18 billion yuan, accounting for/kloc-0.87%, the profit is 65.438+2.9 billion yuan, accounting for only 0.89%, the profit rate is only 0.45%, and the loss is 40.68%. The losses of state-owned and state-controlled cotton textile enterprises in the western region are relatively high. Low industrial concentration and low profit are the important internal reasons for the serious lack of pricing power of cotton enterprises in China. 2. The product difference is small. As far as the differences between textiles and clothing products are concerned, there are few distinctive and influential brands in China. According to statistics, 98% of the export products of China textile industry are OEM products of foreign brands, and only 2% of the products belong to brands with independent intellectual property rights. The lack of independent brands and the continuous expansion of cotton production and processing capacity will inevitably lead to the following situations: when the cotton market is in short supply, resources are snapped up and prices are driven up; Rich cotton resources, falling cotton prices, idle equipment and waste, resulting in economic losses. Due to the frequent fluctuation of cotton price. This has a negative impact on cotton farmers' planting decision. China's cotton industry is "multi-headed", which is greatly affected by the fluctuation of international cotton and its finished products prices, affecting the stability of the entire industrial chain. Domestic cotton is at an obvious disadvantage in international competition because of its high cost and low quality. Domestic processing enterprises turn to use imported cotton in large quantities, which leads to the shrinking of domestic cotton planting area and the decline of pricing power of domestic enterprises. The key to deal with the current grim situation of cotton industry is to recognize the situation, grasp the trend, take effective measures and actively respond. 1. Pay attention to cotton industry and prevent cotton production from ups and downs. Stable planting area is the basic guarantee for the stable and healthy development of cotton industry. At present, the relatively stable cotton field area in our city accounts for about 1/4 of all cultivated land, covering nearly 200,000 farmers, which is not only the requirement of natural planting conditions, but also the choice of long-term comparative interests. According to the statistical analysis of the supply and marketing departments over the years, the average net income per mu of cotton planting is about twice that of rice. It can be seen that the cotton industry is of great significance to increase farmers' income, expand employment and increase taxation. Therefore, all localities and relevant departments should attach great importance to cotton production to prevent ups and downs, especially in the current grim situation. On the one hand, we should study and implement various support measures to protect cotton farmers' enthusiasm for production; On the other hand, it is necessary to further publicize and guide the vast number of cotton farmers. At the moment of crisis, there are both dangers and opportunities. We should calmly look at the immediate difficulties, firmly develop our confidence, and at the same time stabilize the planting area, focus on improving varieties, scientifically plant, and focus on yield per unit area to increase the total output. In addition, in accordance with the requirements of intensive development, farmers should be guided and encouraged to concentrate the contracted land management right to large cotton growers and cotton growers in the form of subcontracting, exchange and joint-stock cooperation, so as to optimize the planting layout and realize moderate scale operation. The key point is to build centralized cotton planting bases in the east and west of Wuwei, south of Hanshan, north of Lujiang and north of Juchao, and promote the construction of scale, standardization and brand. 2. Increase policy support to help cotton farmers and enterprises tide over the difficulties. At present, the difficulties faced by cotton farmers and enterprises are unprecedented in history. How to support them to tide over the difficulties smoothly is a major responsibility of all parties concerned. According to the current situation, the support suggestions for cotton farmers are as follows: according to the grain purchase policy, cotton is purchased at the protective price, and the current protective price is seed cotton 5.2 yuan/kg (planting cost); Direct subsidy for cotton paste will be implemented, and the previous practice of purchasing seed subsidies will be adjusted to direct subsidy according to planting area to ensure that cotton farmers have more choices in purchasing seeds. Suggestions on supporting measures for cotton ginning enterprises: increase the national reserve, lower the threshold of purchasing and storage, directionally purchase and storage in the main cotton producing areas in the middle and lower reaches of the Yangtze River, and adjust the moisture regain index to 10% according to the actual climate conditions in this area. At the same time, it is suggested to implement provincial cotton purchasing and storage, give discount loans to textile enterprises and cotton purchasing stations, encourage more purchases, and protect the enthusiasm of cotton farmers. Reduce taxes and fees, adjust the value-added tax from 5‰ of sales to the value-added amount as the base, and cancel all unreasonable charges in strict accordance with policy requirements; Support the superior and the strong, and implement policy support for provincial and municipal leading enterprises or enterprises with processing capacity of 65,438+10,000 tons or more. If the enterprise's overdue repayment in the bank this year will not affect the credit rating, the interest rate of technical transformation loan will be adjusted from 7.48‰ to the equivalent interest rate of credit loan of 5.98‰, and loan risk compensation, loan interest subsidy and lost freight subsidy will be implemented for cotton-related small and medium-sized enterprises, and so on. 3. Accelerate industrial extension and promote the in-depth development of cotton products. The first is scientific planning. According to the distribution of cotton industrial bases in our city, the overall planning of ginning, cotton spinning and related supporting industries should be compiled as soon as possible to make it rationally distributed and develop healthily. At present, especially in view of the small, chaotic and scattered ginning enterprises, high cost, low efficiency and serious waste of processing capacity, through rectification, merger and reorganization, scientific and rational layout, we will speed up the pace of technological transformation and eliminate backward production capacity to help leading enterprises become bigger and stronger. The second is to attract investment. It is necessary to focus on planning and long-term, compile projects, increase promotion efforts, introduce powerful enterprises, support existing enterprises, actively develop spinning-weaving-printing-dyeing-finished products industry, extend the industrial chain, and improve the value-added ability of cotton processing. City Economic Development Zone should speed up the implementation of textile industrial park planning, focus on the introduction of textile, printing and dyeing, clothing and other related enterprises, and implement 500,000 spindle textiles, 2,000 air-jet looms and supporting projects as soon as possible, especially in the recent adjustment and transfer of textile industry, and the cost of fixed assets is low. It is necessary to encourage and guide the textile enterprises in this city to seize the opportunity, take the initiative, actively undertake and expand production capacity, and transform the advantages of cotton resources in our city into development advantages as soon as possible. The third is to optimize the environment. Experience shows that reasonable government policy guidance and regulation can accelerate the development of cotton industry. Mainly in improving infrastructure construction, strengthening technology promotion, increasing financial support, promoting social services, establishing risk prevention mechanisms, standardizing market order, and strengthening public opinion guidance, we will strive to create a good external environment for the development of cotton industrialization. 4. Pay close attention to the integration of forces and improve the socialized service system. The upgrading of cotton industrial structure requires large-scale production, intensive processing, networked circulation, and the establishment and improvement of socialized service system. Supply and marketing cooperatives should give full play to the role of industrialization leading departments, strengthen guidance and deepen services; Agricultural technology extension, seed supply and other units should further improve the promotion of improved varieties and technical training; The cotton association should continue to play the role of service, coordination, self-discipline and rights protection of the industry and become a bridge and link between cotton farmers, cotton enterprises and the government; Cotton ginning enterprises should play a leading role and form interest relations with cotton farmers through orders and other forms; In particular, it is necessary to speed up the construction of specialized cotton cooperatives and cotton brokers, improve the degree of organization of cotton farmers and their ability to adapt to the market as soon as possible, and strive to build a new agricultural socialized service system with public service institutions, cooperative economic organizations and leading enterprises as the backbone, supplemented by other social forces, combining public welfare services with operational services, and coordinating special services with comprehensive services through three to five years of efforts, so as to "escort" the sound and rapid development of the cotton industry.