Chapter 7 Chapter 06 The Cotton War: The Manipulation Has Begun
Imperialism is the highest stage of capitalism
Translated into the language of ordinary people, this means that capitalism has developed to such an extent that commodity production, although still "dominant", still regarded as the basis of the entire economy, has actually been destroyed, and most of the profits They were all taken away by those "geniuses" who were engaged in financial activities.The foundation of this financial sleight of hand and deceit is the socialization of production, a great progress that human beings have made so hard to achieve, but for the benefit of... speculators. (Lenin: "Imperialism is the Highest Stage of Capitalism" People's Publishing House, April 2001, 3rd Edition, p. 20)
Cotton country suffered the pain of cotton.
Why did China's cotton production and quality drop sharply in 2009?
The pillar industry of export is facing a menacing impact.
From July to August 2005, a large amount of American cotton was shipped to bonded areas in China, and the price was dumped in China.
To meet the challenge, what attitude will you use to face it?
If you attack American corn and American cotton, you go to the WTO to sue it. If you succeed, you will hit the United States so hard that it will be afraid.
I have recently done a lot of research on agricultural issues and found some very interesting problems.In the previous chapters, the soybean and corn issues have been discussed. So, is China's textile export the most important export?That being the case, if Americans want to make a fortune, how can they not start with textiles?Think about it, even such a small amount of tires has to be inserted, let alone textiles?If I were an American, I would definitely have the idea of Chinese textiles.How to do it?Winter is here, if you want to wear cotton clothes, start with cotton.This was originally my speculation. I thought that the United States would definitely attack the raw materials of textiles, so we spent a long time researching.The results blew my mind, they were not just beginning, they were almost over, the US had fully manipulated the cotton market, and our future cotton would no longer be our own.
On October 27, 2009, the China National Textile and Apparel Industry Association pointed out that due to the impact of the financial crisis, from January to August 2009, the export volume of China's textile industry was US$107.5 billion, a year-on-year increase of -1.78%.However, the market share of the three major trading partners in the United States, the European Union and Japan has shown an upward trend.Among them, the market share in the United States has increased from 36% to 37.5%. The EU market is similar to the United States, and more than 87% of Japan's total clothing imports are Chinese clothing.However, due to the severe decline in global consumption, China's textile industry, like other export-oriented industries, is facing the challenge of industrial upgrading.In the entire textile industry chain, cotton is located in the downstream of the industry and is the foundation of the textile industry.So, what is the status of this basic industry, and how will changes in the cotton market affect China's textile industry?
According to the National Cotton Growth Survey Report released by the National Cotton Market Monitoring System in September 2009, the total national cotton output will drop by 12.4% from the previous year to 7 million tons in 2009-2010, which is the largest cotton output since 2000. Decrease, the market gap is about 2 million tons.At the same time, cotton prices have fluctuated violently and elusively from the global market to the domestic market in the past few years, directly affecting the planting choices of domestic cotton farmers. For this reason, the country continues to introduce regulatory measures every year to stabilize the cotton market.So how did the problems in the cotton market arise?Who caused a series of problems in cotton cultivation?
Who is doing cotton?It is Monsanto again, which has developed a new genetically modified cotton product called GM cotton 33B.So why is this cotton an opportunity?For example, on September 28, 2009, the media reported that in Dezhou, Shandong, one of the largest cotton spinning bases in China, textile companies have begun to use wood pulp to make up for the shortage of cotton. In 2009, China's cotton consumption was about 9 million tons, and the gap was about 2 million tons.This is not the most frightening thing. Looking further down, the demand for cotton in 2005 was 9.5 million tons, while our production was only 5.7 million tons, so there was a gap of about 40% at that time, and now it is a gap of 30%. On September 28, 2009, according to the monthly report on China's cotton situation published on the website of the China Cotton Association, it is expected that the demand for cotton will pick up after entering the new year, while the decline in output is a foregone conclusion, and the gap between supply and demand of cotton will expand. How much to expand, no data.Just on September 27, Zhang Xiaoqiang, deputy director of the National Development and Reform Commission, said at the 2009 National Cotton Work Telephone Conference that from the perspective of the whole year of 2009, the production and export of the textile industry will gradually pick up.Please note that the export and production of the textile industry will gradually pick up, which means that the growth of cotton demand will pick up steadily, and the gap between cotton production and demand will expand compared with the previous year.I don't know how much it will expand, but in 2009, the national cotton planting area was about 75.92 million mu, a decrease of 10 million mu compared with 2008, a decrease of more than 10%. This is the current situation.The National Development and Reform Commission is relatively optimistic. It is estimated that this year's consumption will not be 9 million tons, but 8 million tons.This is a bit too optimistic, because the growth rate of cotton consumption in the first eight months of 2009 has exceeded that of the same period last year, so this figure is likely to exceed 9 million tons.According to our estimates, the gap between supply and demand will probably reach two to three million tons. In addition, we also found other phenomena.Taking Texas as an example, according to media reports, the five consecutive days of rainy weather in early September greatly affected the quality and production of cotton, reducing production by more than 20%. More importantly, the quality of cotton also dropped significantly.This surprised us. Why did China's cotton production and quality drop sharply in 2009?The reason was not mentioned in the report, and I found it very curious, so we started to do research.It was found that the clothing fraction rate dropped to 34%.What is clothing fraction rate?The cotton grown by farmers has cotton seeds in it, called seed cotton, which cannot be directly used for spinning, but must be transformed into lint before spinning. How many catties of lint can be converted into 100 catties of seed cotton, this ratio is called the percentage of clothing.China's standard clothing percentage should be about 37%, but this year's clothing percentage is only 34%.The unit yield of cotton has declined, the quality has declined, and the percentage of clothing has also decreased. What is going on?The average quality of cotton has decreased by 10%, the yield per unit area has decreased by 10%, and the area of cultivated land has decreased by 10%. This is the current situation.I was very curious about such a big change. After investigation, I found that all these problems started with Monsanto. In 1997, we introduced the genetically modified insect-resistant cotton 33B from Monsanto in the United States.We found that this variety has an advantage, because it is resistant to cotton bollworm, so from 2001 to 2004, the use of pesticides in our cotton planting decreased by 50% to 60%, thus reducing the cost of planting by 25%, and the yield per acre It has increased by 20%, and the clothing percentage has also increased to 42%.Judging from various data, the situation from 2001 to 2004 was very good.But Monsanto knows very well that the Chinese Academy of Agricultural Sciences or farmers will propagate their own insect-resistant cotton, and then produce their own seeds to produce their own cotton.It knew we would do this, but it didn't tell us.Why not sue?Because there is a very interesting phenomenon in China, you can't report it. The quality and safety of agricultural products has always been highly concerned by all countries, and some countries even regard it as the fourth largest social problem on a par with population, resources and environment.For China, after joining the WTO, on the one hand, agricultural production is facing enormous pressure, and on the other hand, the weak intellectual property rights in the field of agricultural technology are also facing severe challenges.Although China has become the world's largest cotton producer, consumer and importer, for a long time, "the world's cotton situation depends on China, and the international cotton price depends on the United States." The United States has firmly controlled the international cotton pricing power.Then, as an American agricultural company with strong scientific and technological strength, how does it use its own scientific and technological strength, and what impact will the genetically modified American cotton take root in China?
There is a very interesting case. A Denghai company in Shandong sued Shandong Laizhou Agricultural Science Institute, claiming that its seed Denghai No. 9 was plagiarized by Laizhou Agricultural Science Institute, and after plagiarism, it became Huiyuan No. 53.After being identified by the Maize Research Center of Beijing Academy of Agriculture and Forestry Sciences, it was found to be plagiarism, because the gene of Huiyuan 53 did come from Denghai 9.Therefore, the Supreme People's Court published a case in 2004 to guide the trial of similar cases. As long as the genes are the same, it is called plagiarism. Therefore, Laizhou Agricultural Science Institute lost the lawsuit. Later, the same thing happened again, and the product of this company, called Denghai No. 1, was copied by Jinshan Seed Company and became Jinshan No. 2.Denghai Company took Yu Wei, who had won the case last time, to an intermediate court in Inner Mongolia to sue Jinshan Seed Company, but lost the case.The reason for losing the lawsuit is very ridiculous: the Corn Research Center of the Beijing Academy of Agriculture and Forestry Sciences does not have the function of a notary office, and its notarization results will not be accepted.The Corn Research Center of the Beijing Academy of Agriculture and Forestry Sciences was recommended by the Ministry of Agriculture of China. There is no publicly certified institution in the world that can do this evaluation. It is a state-owned institution recommended by the government as a neutral institution for evaluation.As a result, our court actually took this as a reason and ruled that Denghai Company lost the lawsuit. Denghai Company had the opportunity to become a large-scale enterprise that controls the seed industry like Monsanto. China's protection of intellectual property rights has always been imperfect, so China will not have Monsanto, but it gave Monsanto an excellent opportunity to enter China and sweep China. market.After Monsanto entered China, we found that it had absolutely no rivals. Monsanto is very smart. It knows that the cotton seed GM cotton 33B it brought in will be plagiarized, and it also knows that the result of the prosecution is likely to be lost, so it does not sue at all.then what should we do?In fact, its insect-resistant cotton 33B has the same problem as the corn we mentioned earlier.This genetically modified cotton has no problems in the first three years. After three years, if you don’t continue to buy seeds from it, the cotton you grow will not be as good as the next generation.So in 2009, our cotton production dropped by 10%, and the quality dropped by 10%. What's more frightening is that the clothing percentage dropped from 42% in the past to 34%, which was worse than our previous traditional cotton.This is the brilliance of Monsanto. In order to control the cotton market in China, it has developed such a special insect-resistant cotton 33B, which guarantees that after three years, the next generation will not be as good as the first generation, and what is even more frightening is that they have the ability to prevent cotton bollworms. After the cotton bollworm was eradicated, aphids came out, spider mites came out, whiteflies came out, and various other pests came out from 2006.This led to more serious consequences, and the quality of Chinese cotton fell sharply. Now, our cotton farmers in China are faced with several choices, which are the same as those for corn.If you want to kill aphids, spider mites and whitefly, you need to buy pesticides. There are only two companies that can provide pesticides. One is Monsanto, and the other is its cooperative enterprise, BASF in Germany. If you want to buy pesticides, they can make a fortune.Otherwise, the seeds can no longer be used, because the percentage of seedlings is also reduced, and the yield is also reduced. What can you do?Then buy seeds from it, and it will make another fortune.In the end, you found that there is another more terrifying phenomenon, that is, what should I do with the shortfall of two to three million tons of cotton in China?It is too late to plant cotton now, and the only way to meet such a big gap is to rely on imports. The U.S. government has provided a large amount of subsidies in order to allow U.S. corn to be exported to China.The same is true for cotton. From August 1999 to July 2003, US cotton producers received a total of US$12.4 billion in subsidies, while the US cotton production value during the same period was only US$13.9 billion, and the subsidy rate was as high as 89% of the output value.That is to say, for every dollar of cotton grown by American farmers, the U.S. government gives them a subsidy of $0.89.By 2001 and 2002, the cotton production value of the United States was 3 billion US dollars, and the US government provided 4 billion US dollars in subsidies.That is to say, for every dollar of cotton produced, American cotton farmers can get a subsidy of $1.29.In addition, data shows that for every ton of American cotton imported by China, the U.S. government gives American farmers a subsidy equivalent to RMB 600. From July to August 2005, a large amount of American cotton was shipped to bonded areas in China and dumped in China at very low prices. As early as December 6, 2005, a survey report by Oxfam Hong Kong showed that the highly subsidized US cotton would make millions of Chinese farmers face the fate of being squeezed out of the international cotton market.According to the 2006 estimate of the Rural Economic Research Center of the Ministry of Agriculture, since China joined the WTO in 2001, in the six years since importing cotton, my country’s farmers have lost more than 25 billion yuan, which is equivalent to a loss of 250 yuan for each cotton farmer. .On the one hand, high government subsidies make the price of American cotton about 2,000 yuan per ton lower than that of domestic cotton on average; China promotes the "American Cotton" logo.The cotton industry involves multiple links such as planting, storage, textiles, printing and dyeing, and clothing. The industrial chain is long and the scale of the industry is huge. It is also the main support point for my country's foreign trade exports and economic growth. The impact of American cotton will have a negative impact on the entire Chinese textile industry What kind of impact will it have?
This is how the U.S. government subsidizes, so American cotton is very cheap.I don't even know what we should do now, the shortfall of two to three million tons is already a fait accompli, what should we do?Winter is coming, you want to change cotton clothes, how do you change?As long as you import cheap cotton from the United States, the story of soybeans and corn will surely repeat itself, and there will be no room for Chinese cotton to compete.We used to import Monsanto's insect-resistant cotton 33B to produce it ourselves, but once we start importing American cotton, China's cotton market will fall after the soybean and corn markets.And this time the consequences of the fall were even more serious. After the fall of soybeans, it affected grain and oil. After the fall of corn, it affected livestock, poultry and derivative products including eggs and dairy products, which in turn affected China's food and China's consumer price index. .But once cotton is under control, the most important commodity exported by China, the raw material for textiles, will be under the control of the United States. What will be the result in the end?China's textile industry is specialized in manufacturing, so it needs to buy raw materials, from whom?Buy from the United States, and now the pricing power of cotton is in the hands of the United States.Our textiles are exported to the United States. Since we only do manufacturing and the other six links in the industrial chain are all controlled by the United States, the pricing power of our textiles is also controlled by the United States.The pricing power of raw materials is controlled by the United States, and the export sales price is also controlled by the United States. Chinese textile manufacturers neither control the pricing power of raw materials nor sales pricing power. Putting the manufacturing process in China will also damage our environment and waste our resources. resources and exploit our labor.All the profits we have worked so hard to create have been absorbed by the United States.China's textile industry will be very hard in the future, working hard, but not even earning a dime profit.In the end, the more China exports, the richer the US will be. The competitive advantage of U.S. cotton is due to the high subsidies of the U.S. government, which not only distorts international cotton prices, but also puts great pressure on cotton-producing countries, directly affecting the cotton farmers' income. On October 19, 2009, at the invitation of the National Cotton Federation of the United States, a high-level delegation of the cotton industry of the China Cotton Association, composed of representatives of cotton farmers, cotton professional cooperatives, cotton trading companies, and cotton spinning companies, went to the United States for inspection and exchange.The delegation went to the southeastern, central south, and southwestern cotton regions of the United States for investigation and exchange.Relevant analysis believes that the purpose of the China Cotton Association's visit to the United States during this extraordinary period of turbulent domestic cotton prices and reduced production of new cotton should not only be for inspection and exchange.Recently, the national cotton-related departments have been active, and it remains to be seen what kind of big moves they will make.So, what should our attitude be in the face of the US government's high government subsidies for cotton?
In addition to the soybeans, corn and cotton mentioned above, other agricultural products are also hard to escape.Take rice and wheat, the most important staple foods in China, as an example. At present, our government suppresses prices in terminal retail and prohibits price increases; on the other hand, it requires high prices to purchase rice and wheat from farmers. Can afford it?Buy at a high price when buying, and sell at a low price when selling, which will inevitably lead to losses.As a result, some granaries had difficulty in operating and were heavily in debt.At this time, facing the hydrangea thrown by the four major foreign grain merchants with strong strength, many grassroots granaries thought it was a good way to solve the problem, so they were heavily invested in or acquired.According to media reports, the granaries in Heze, Yanzhou, Liangshan, Shandong, and Cangzhou, Hebei are all owned or controlled by Yihai.Specifically how many granaries were acquired?When our research assistants went to various places for research, the granaries in various places refused to disclose the details of the acquisition by foreign capital on the grounds of grain confidentiality, thus protecting foreign capital.And the fact that we don't know how many granaries have been acquired is a ticking time bomb. What about our other important agricultural product—vegetables?According to the results of our research, the three major foreign-funded seed companies—Monsanto, DuPont in the United States, and BASF in Germany—have already controlled 50% of the market share of vegetable seeds in China. Pork, the most important food for Chinese people, is also being acquired by foreign businessmen, and the pig raising industry chain is also being acquired by Wall Street's Goldman Sachs. In 2004, Goldman Sachs acquired Yurun Group, a downstream pork processing plant. In 2006, Goldman Sachs acquired Henan Shuanghui, a downstream pork processing plant, at a price of 2 billion yuan.Once the downstream is settled, then the upstream is settled, so Goldman Sachs bought dozens of pig factories in Hunan, Fujian and other provinces for US$300 million in 2008.After finishing the upstream and downstream, in 2009 the midstream channel was established, thus completing the integration of the pig raising industry chain.Controlling the entire industrial chain will greatly reduce costs, thereby controlling the pricing power of pork at the lowest cost, without the need to fully acquire China's pork industry. What other agricultural and animal husbandry products have we not been purchased?Chickens and ducks may not have been acquired yet.Still, if even I can figure out that Chicken and Duck hasn't been acquired, it probably has, we just don't know it yet.We haven't reacted yet, and when we do, it will be too late. Since we don’t even have the minimum sense of crisis, and instead handed over the entire agricultural and animal husbandry industry to the European and American interest groups headed by Monsanto—the Modern East India Company, including the four major grain merchants and Wall Street’s financial capital, then our future in China What should be done about food security?
According to the National Cotton Growth Survey Report released by the National Cotton Market Monitoring System in September 2009, the total national cotton output will drop by 12.4% from the previous year to 7 million tons in 2009-2010, which is the largest cotton output since 2000. Decrease, the market gap is about 2 million tons.At the same time, cotton prices have fluctuated violently and elusively from the global market to the domestic market in the past few years, directly affecting the planting choices of domestic cotton farmers. For this reason, the country continues to introduce regulatory measures every year to stabilize the cotton market.So how did the problems in the cotton market arise?Who caused a series of problems in cotton cultivation?
Who is doing cotton?It is Monsanto again, which has developed a new genetically modified cotton product called GM cotton 33B.So why is this cotton an opportunity?For example, on September 28, 2009, the media reported that in Dezhou, Shandong, one of the largest cotton spinning bases in China, textile companies have begun to use wood pulp to make up for the shortage of cotton. In 2009, China's cotton consumption was about 9 million tons, and the gap was about 2 million tons.This is not the most frightening thing. Looking further down, the demand for cotton in 2005 was 9.5 million tons, while our production was only 5.7 million tons, so there was a gap of about 40% at that time, and now it is a gap of 30%. On September 28, 2009, according to the monthly report on China's cotton situation published on the website of the China Cotton Association, it is expected that the demand for cotton will pick up after entering the new year, while the decline in output is a foregone conclusion, and the gap between supply and demand of cotton will expand. How much to expand, no data.Just on September 27, Zhang Xiaoqiang, deputy director of the National Development and Reform Commission, said at the 2009 National Cotton Work Telephone Conference that from the perspective of the whole year of 2009, the production and export of the textile industry will gradually pick up.Please note that the export and production of the textile industry will gradually pick up, which means that the growth of cotton demand will pick up steadily, and the gap between cotton production and demand will expand compared with the previous year.I don't know how much it will expand, but in 2009, the national cotton planting area was about 75.92 million mu, a decrease of 10 million mu compared with 2008, a decrease of more than 10%. This is the current situation.The National Development and Reform Commission is relatively optimistic. It is estimated that this year's consumption will not be 9 million tons, but 8 million tons.This is a bit too optimistic, because the growth rate of cotton consumption in the first eight months of 2009 has exceeded that of the same period last year, so this figure is likely to exceed 9 million tons.According to our estimates, the gap between supply and demand will probably reach two to three million tons. In addition, we also found other phenomena.Taking Texas as an example, according to media reports, the five consecutive days of rainy weather in early September greatly affected the quality and production of cotton, reducing production by more than 20%. More importantly, the quality of cotton also dropped significantly.This surprised us. Why did China's cotton production and quality drop sharply in 2009?The reason was not mentioned in the report, and I found it very curious, so we started to do research.It was found that the clothing fraction rate dropped to 34%.What is clothing fraction rate?The cotton grown by farmers has cotton seeds in it, called seed cotton, which cannot be directly used for spinning, but must be transformed into lint before spinning. How many catties of lint can be converted into 100 catties of seed cotton, this ratio is called the percentage of clothing.China's standard clothing percentage should be about 37%, but this year's clothing percentage is only 34%.The unit yield of cotton has declined, the quality has declined, and the percentage of clothing has also decreased. What is going on?The average quality of cotton has decreased by 10%, the yield per unit area has decreased by 10%, and the area of cultivated land has decreased by 10%. This is the current situation.I was very curious about such a big change. After investigation, I found that all these problems started with Monsanto. In 1997, we introduced the genetically modified insect-resistant cotton 33B from Monsanto in the United States.We found that this variety has an advantage, because it is resistant to cotton bollworm, so from 2001 to 2004, the use of pesticides in our cotton planting decreased by 50% to 60%, thus reducing the cost of planting by 25%, and the yield per acre It has increased by 20%, and the clothing percentage has also increased to 42%.Judging from various data, the situation from 2001 to 2004 was very good.But Monsanto knows very well that the Chinese Academy of Agricultural Sciences or farmers will propagate their own insect-resistant cotton, and then produce their own seeds to produce their own cotton.It knew we would do this, but it didn't tell us.Why not sue?Because there is a very interesting phenomenon in China, you can't report it. The quality and safety of agricultural products has always been highly concerned by all countries, and some countries even regard it as the fourth largest social problem on a par with population, resources and environment.For China, after joining the WTO, on the one hand, agricultural production is facing enormous pressure, and on the other hand, the weak intellectual property rights in the field of agricultural technology are also facing severe challenges.Although China has become the world's largest cotton producer, consumer and importer, for a long time, "the world's cotton situation depends on China, and the international cotton price depends on the United States." The United States has firmly controlled the international cotton pricing power.Then, as an American agricultural company with strong scientific and technological strength, how does it use its own scientific and technological strength, and what impact will the genetically modified American cotton take root in China?
There is a very interesting case. A Denghai company in Shandong sued Shandong Laizhou Agricultural Science Institute, claiming that its seed Denghai No. 9 was plagiarized by Laizhou Agricultural Science Institute, and after plagiarism, it became Huiyuan No. 53.After being identified by the Maize Research Center of Beijing Academy of Agriculture and Forestry Sciences, it was found to be plagiarism, because the gene of Huiyuan 53 did come from Denghai 9.Therefore, the Supreme People's Court published a case in 2004 to guide the trial of similar cases. As long as the genes are the same, it is called plagiarism. Therefore, Laizhou Agricultural Science Institute lost the lawsuit. Later, the same thing happened again, and the product of this company, called Denghai No. 1, was copied by Jinshan Seed Company and became Jinshan No. 2.Denghai Company took Yu Wei, who had won the case last time, to an intermediate court in Inner Mongolia to sue Jinshan Seed Company, but lost the case.The reason for losing the lawsuit is very ridiculous: the Corn Research Center of the Beijing Academy of Agriculture and Forestry Sciences does not have the function of a notary office, and its notarization results will not be accepted.The Corn Research Center of the Beijing Academy of Agriculture and Forestry Sciences was recommended by the Ministry of Agriculture of China. There is no publicly certified institution in the world that can do this evaluation. It is a state-owned institution recommended by the government as a neutral institution for evaluation.As a result, our court actually took this as a reason and ruled that Denghai Company lost the lawsuit. Denghai Company had the opportunity to become a large-scale enterprise that controls the seed industry like Monsanto. China's protection of intellectual property rights has always been imperfect, so China will not have Monsanto, but it gave Monsanto an excellent opportunity to enter China and sweep China. market.After Monsanto entered China, we found that it had absolutely no rivals. Monsanto is very smart. It knows that the cotton seed GM cotton 33B it brought in will be plagiarized, and it also knows that the result of the prosecution is likely to be lost, so it does not sue at all.then what should we do?In fact, its insect-resistant cotton 33B has the same problem as the corn we mentioned earlier.This genetically modified cotton has no problems in the first three years. After three years, if you don’t continue to buy seeds from it, the cotton you grow will not be as good as the next generation.So in 2009, our cotton production dropped by 10%, and the quality dropped by 10%. What's more frightening is that the clothing percentage dropped from 42% in the past to 34%, which was worse than our previous traditional cotton.This is the brilliance of Monsanto. In order to control the cotton market in China, it has developed such a special insect-resistant cotton 33B, which guarantees that after three years, the next generation will not be as good as the first generation, and what is even more frightening is that they have the ability to prevent cotton bollworms. After the cotton bollworm was eradicated, aphids came out, spider mites came out, whiteflies came out, and various other pests came out from 2006.This led to more serious consequences, and the quality of Chinese cotton fell sharply. Now, our cotton farmers in China are faced with several choices, which are the same as those for corn.If you want to kill aphids, spider mites and whitefly, you need to buy pesticides. There are only two companies that can provide pesticides. One is Monsanto, and the other is its cooperative enterprise, BASF in Germany. If you want to buy pesticides, they can make a fortune.Otherwise, the seeds can no longer be used, because the percentage of seedlings is also reduced, and the yield is also reduced. What can you do?Then buy seeds from it, and it will make another fortune.In the end, you found that there is another more terrifying phenomenon, that is, what should I do with the shortfall of two to three million tons of cotton in China?It is too late to plant cotton now, and the only way to meet such a big gap is to rely on imports. The U.S. government has provided a large amount of subsidies in order to allow U.S. corn to be exported to China.The same is true for cotton. From August 1999 to July 2003, US cotton producers received a total of US$12.4 billion in subsidies, while the US cotton production value during the same period was only US$13.9 billion, and the subsidy rate was as high as 89% of the output value.That is to say, for every dollar of cotton grown by American farmers, the U.S. government gives them a subsidy of $0.89.By 2001 and 2002, the cotton production value of the United States was 3 billion US dollars, and the US government provided 4 billion US dollars in subsidies.That is to say, for every dollar of cotton produced, American cotton farmers can get a subsidy of $1.29.In addition, data shows that for every ton of American cotton imported by China, the U.S. government gives American farmers a subsidy equivalent to RMB 600. From July to August 2005, a large amount of American cotton was shipped to bonded areas in China and dumped in China at very low prices. As early as December 6, 2005, a survey report by Oxfam Hong Kong showed that the highly subsidized US cotton would make millions of Chinese farmers face the fate of being squeezed out of the international cotton market.According to the 2006 estimate of the Rural Economic Research Center of the Ministry of Agriculture, since China joined the WTO in 2001, in the six years since importing cotton, my country’s farmers have lost more than 25 billion yuan, which is equivalent to a loss of 250 yuan for each cotton farmer. .On the one hand, high government subsidies make the price of American cotton about 2,000 yuan per ton lower than that of domestic cotton on average; China promotes the "American Cotton" logo.The cotton industry involves multiple links such as planting, storage, textiles, printing and dyeing, and clothing. The industrial chain is long and the scale of the industry is huge. It is also the main support point for my country's foreign trade exports and economic growth. The impact of American cotton will have a negative impact on the entire Chinese textile industry What kind of impact will it have?
This is how the U.S. government subsidizes, so American cotton is very cheap.I don't even know what we should do now, the shortfall of two to three million tons is already a fait accompli, what should we do?Winter is coming, you want to change cotton clothes, how do you change?As long as you import cheap cotton from the United States, the story of soybeans and corn will surely repeat itself, and there will be no room for Chinese cotton to compete.We used to import Monsanto's insect-resistant cotton 33B to produce it ourselves, but once we start importing American cotton, China's cotton market will fall after the soybean and corn markets.And this time the consequences of the fall were even more serious. After the fall of soybeans, it affected grain and oil. After the fall of corn, it affected livestock, poultry and derivative products including eggs and dairy products, which in turn affected China's food and China's consumer price index. .But once cotton is under control, the most important commodity exported by China, the raw material for textiles, will be under the control of the United States. What will be the result in the end?China's textile industry is specialized in manufacturing, so it needs to buy raw materials, from whom?Buy from the United States, and now the pricing power of cotton is in the hands of the United States.Our textiles are exported to the United States. Since we only do manufacturing and the other six links in the industrial chain are all controlled by the United States, the pricing power of our textiles is also controlled by the United States.The pricing power of raw materials is controlled by the United States, and the export sales price is also controlled by the United States. Chinese textile manufacturers neither control the pricing power of raw materials nor sales pricing power. Putting the manufacturing process in China will also damage our environment and waste our resources. resources and exploit our labor.All the profits we have worked so hard to create have been absorbed by the United States.China's textile industry will be very hard in the future, working hard, but not even earning a dime profit.In the end, the more China exports, the richer the US will be. The competitive advantage of U.S. cotton is due to the high subsidies of the U.S. government, which not only distorts international cotton prices, but also puts great pressure on cotton-producing countries, directly affecting the cotton farmers' income. On October 19, 2009, at the invitation of the National Cotton Federation of the United States, a high-level delegation of the cotton industry of the China Cotton Association, composed of representatives of cotton farmers, cotton professional cooperatives, cotton trading companies, and cotton spinning companies, went to the United States for inspection and exchange.The delegation went to the southeastern, central south, and southwestern cotton regions of the United States for investigation and exchange.Relevant analysis believes that the purpose of the China Cotton Association's visit to the United States during this extraordinary period of turbulent domestic cotton prices and reduced production of new cotton should not only be for inspection and exchange.Recently, the national cotton-related departments have been active, and it remains to be seen what kind of big moves they will make.So, what should our attitude be in the face of the US government's high government subsidies for cotton?
In addition to the soybeans, corn and cotton mentioned above, other agricultural products are also hard to escape.Take rice and wheat, the most important staple foods in China, as an example. At present, our government suppresses prices in terminal retail and prohibits price increases; on the other hand, it requires high prices to purchase rice and wheat from farmers. Can afford it?Buy at a high price when buying, and sell at a low price when selling, which will inevitably lead to losses.As a result, some granaries had difficulty in operating and were heavily in debt.At this time, facing the hydrangea thrown by the four major foreign grain merchants with strong strength, many grassroots granaries thought it was a good way to solve the problem, so they were heavily invested in or acquired.According to media reports, the granaries in Heze, Yanzhou, Liangshan, Shandong, and Cangzhou, Hebei are all owned or controlled by Yihai.Specifically how many granaries were acquired?When our research assistants went to various places for research, the granaries in various places refused to disclose the details of the acquisition by foreign capital on the grounds of grain confidentiality, thus protecting foreign capital.And the fact that we don't know how many granaries have been acquired is a ticking time bomb. What about our other important agricultural product—vegetables?According to the results of our research, the three major foreign-funded seed companies—Monsanto, DuPont in the United States, and BASF in Germany—have already controlled 50% of the market share of vegetable seeds in China. Pork, the most important food for Chinese people, is also being acquired by foreign businessmen, and the pig raising industry chain is also being acquired by Wall Street's Goldman Sachs. In 2004, Goldman Sachs acquired Yurun Group, a downstream pork processing plant. In 2006, Goldman Sachs acquired Henan Shuanghui, a downstream pork processing plant, at a price of 2 billion yuan.Once the downstream is settled, then the upstream is settled, so Goldman Sachs bought dozens of pig factories in Hunan, Fujian and other provinces for US$300 million in 2008.After finishing the upstream and downstream, in 2009 the midstream channel was established, thus completing the integration of the pig raising industry chain.Controlling the entire industrial chain will greatly reduce costs, thereby controlling the pricing power of pork at the lowest cost, without the need to fully acquire China's pork industry. What other agricultural and animal husbandry products have we not been purchased?Chickens and ducks may not have been acquired yet.Still, if even I can figure out that Chicken and Duck hasn't been acquired, it probably has, we just don't know it yet.We haven't reacted yet, and when we do, it will be too late. Since we don’t even have the minimum sense of crisis, and instead handed over the entire agricultural and animal husbandry industry to the European and American interest groups headed by Monsanto—the Modern East India Company, including the four major grain merchants and Wall Street’s financial capital, then our future in China What should be done about food security?