The China Securities Journal Online Article-The misunderstand of Organic cotton industry

Nowadays, we are misunderstand about the organic cotton industry easily. Here are some main issue why:

 First issue: The input of the organic cotton industry are very big

There is no doubt the human resources of organic cotton industry are big, and the cost of it are rocketry increase in recently years. Those are the issue effect people to misunderstand. According to the business representative of Mecilla LTD, Fung Lo, the salary of local workers usually between 70-110 RMB, and now is about 100-150 RMB. ' Compare to the traditional cotton industry, it doesn't mean that the development cost of are way bigger than traditional cotton industry. ' Fung continue' Because the cost of fertilizer and agricultural chemical are increase, somehow to a large extant situation, if we use the farm manure and farmland soil can offset the cost. So, in overall the cost of organic cotton industry are not always better than the traditional cotton industry.

  Second issue: The output of organic cotton industry are very low

In the early production period, the organic cotton industry production system usually will drop down the production quantity. But in the long terms, if the organic cotton industry grow up regularly, not only the output can be as much as the traditional cotton industry, but also can over the output of traditional cotton industry. Somehow, the production quality and the mass of production of the organic cotton industry are far away better than the traditional one if the grow up are regularly. The re presenter of  ' Pu Han Community ' said' In first year we did the production which was 2010, we admitted that the production mass were drop down,but in the upcoming year which was 2011, the production mass rebounded and over the traditional cotton production.

 Third issue: The organic cotton items should be high price

It is normal when the input high, the output low,the sell price will be high.In the market of organic cotton product we can see some of the organic cotton items are expensive than traditional one,people sell as the high end gifts.Some reporter of our Journal saw some cooperative sell the 4 pieces gift box as 200RMB. But in the 'Pu Han Community' cooperative selling the organic products with market price as the traditional cotton products.

Fourth issue: Organic cotton industry can be mass production

' First of all, if the organic cotton industry develop widely, how can we get enough farmland soil to do develop? ' said the Deputy Director of YongJi Agriculture Bureau. In  'Pu Han Community ' , the main reason why the can grow up welly is the members of cooperative can feed the livestock at the same time to ensure the input of the farmland soil. However, not only the agriculture effect itself.  YongJi website editor said' The technology of organic cotton are mature, but the key point effect the industry are about the environment, for example the air, landfill, and water, those conditions are hard to control by human being. So, we want the place can fulfill the production standard thought Marco to Micro are very hard in my opinion. '

Nowadays in mainland, the organic cotton market are chaos, it prove that the grow of the organic cotton industry are not healthy, it harms the organic products in market become flood and can' t be certification in market. So, it we want to grow the very mature organic cotton industry, there are still long way to go.




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