CNCotton: Similar to textile production in China, the cotton-processing units are also facing an excessive capacity. One cotton ginner in Shandong province pointed out that if all Chinese cotton ginners run at full capacity, the whole ginning period will be less than one month. Currently, many ginners operate between 1000-2000 tons a year.
The excessive processing capacity could mean several derivatives in the market. First, small ginners have limited techniques and equipment, a lot of high grade cotton are wasted in their battle for cotton. Second, mixed grade and contamination occurs in poorly-managed small ginners that will eventually affect the overall quality of domestic crop. Third, the oversized cotton processing sector also means difficulties in any scaled purchases of ideal fiber unity by the spinning mills, which is also unfavorable for the consumption of domestic cotton. Therefore, a fundamental reform may takes place in the processing units.
