China Cotton Association (CCA) is a China non-profit federation in the area of cotton, which is voluntarily established by cotton farmers, cotton farmers' cooperative organizations, enterprises engaged in cotton production, purchase, processing and operation, cotton textile enterprises, cotton research institutes and other organs and which accepts the supervision and management of the Chinese Ministry of Civil Affairs and the professional guidance of the All-China Federation of Supply and Marketing Cooperatives.
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The CCA is made up of players from the cotton sector, cotton farm groups, those in the cotton production sector, buyers, sub-contractors, vendors, exporters, warehousing companies, the clothing industry and cotton research organisations.
Members of the association are either organisations or businesses working in the cotton sector that wish to participate in a Chinese consultation structure. Set up in September 2003, the association has since actively developed numerous service and conciliation activities, set up a code of ethics and internal regulations as well as professional protection services within the sector.
The association has become one of the major partners and an important relay between official organisations, governmental structures and agricultural and industrial players in the Chinese cotton sector.
It is a major player in the steady and stable development of the Chinese cotton sector. In relation to international trade, over the last four years it has established numerous working relationships and many regular exchanges with organisations in the cotton trade and industry in the main producer and cotton buying countries worldwide.
Chinese cotton production in 2006 related to a planted area of nearly five and a half million hectares (5,410,000 hectares), i.e. eighty one million ‘mous’ (a ‘mou’ is the traditional area unit used in rural China, which is about a fifteenth of a hectare ) (81,130,000 ‘mous’). According to the official Chinese Statistics Office figures, production in 2006 was 6,730,000 tonnes. Of this, a third of the production came from the Xinjiang province, 2,180,000 tonnes. Based on these production figures, it is estimated that it was needed to import 4,300,000 tonnes of cotton in order to meet the demand, but in actual fact between September 2006 and August 2007 (which is the annual cotton season in China) the country only had to import 2,280,000 tonnes of cotton, i.e. 47% less than predicted. Two million tonnes less than predicted. Actual production in Xinjiang was over 3,200,000 tonnes of cotton. Production in China is in the region of 7,700,000 tonnes.
Mill production is increasing quite rapidly. According the Chinese Statistics Office, between September 2006 and August 2007 China produced 19,030,000 tonnes of yarn. It is up 18.8 %, but is however an increase that is 8 points down on the same period in the previous year.
According to a study undertaken by the Chinese Cotton Association, in 2007 in China the planted area of cotton was 82,600,000 ‘mous’ (around 5 and a half million hectares), a slight increase on the previous year. Production forecasts anticipate production remaining stable against the previous year, with perhaps a slight increase to reach around 7,700,000 tonnes once again.
Demand in China is constantly increasing. Specialists estimate that textile production for 2007 will continue to grow. It is thought that the production of cotton thread will increase 10% to reach around 21 million tonnes. With a cotton requirement of 12 million tonnes, China needs to import around 4 million tonnes of cotton.