Assistant Minister Fang Aiqing: Operation Report of Silk Industry (II)

Second, fully understand the complex situation of the development of silk industry is facing (a) of silk export growth, but not a fundamental improvement in external demand <br> <br> slow recovery of the world economy, prompting global boom of the textile industry rebounded, International Silk consumption Also gradually warmer. According to customs statistics, China's real silk merchandise exports during January-June 2010 amounted to US$1.51 billion, an increase of 8.3% year-on-year, reversing the downward trend for four consecutive years, and dominating the traditional sales market in Italy, India, Japan, and Germany, and Pakistan. Market exports are growing rapidly. However, it should be noted that the external demand for silk has not fundamentally improved. The reason why silk exports have stopped falling for four consecutive years is affected by the following unsustainable factors: First, commercial inventory is at a low level for a long time; *** The appreciation is expected to increase. Some foreign investors will order in advance. From the perspective of development trends, the endogenous impetus for economic recovery in major developed countries is insufficient, and the capacity of emerging markets will also become saturated, and developed countries such as the United States have proposed plans such as “multiplying exports” and “industry returns” after the financial crisis. Impact on China's exports. According to many export companies, orders in the 3rd and 4th quarters are not optimistic. Some foreign companies find it difficult to accept the current high prices and there are cases where other textiles are used as substitutes for silk fabrics.

(B) the silk industry production improved, but the business has significantly increased the pressure <br> <br> with the rising demand of silk, silk industrial output value and profit growth in both. According to statistics from the National Bureau of Statistics, total industrial output value of silk enterprises above designated size increased by 26.1% from the same period of last year, and profits increased by 75% year-on-year. Losses of enterprises decreased by 8% year-on-year, and losses decreased by 47%. However, the operating pressure faced by silk companies has increased significantly. First, the price of raw materials continues to rise. The price of silkworm cocoon remains high, resulting in the continuous emergence of "silk silk upside down" in the silk industry; and second, the factor cost has entered a period of concentrated rise. The rising costs of labor, energy, resources, transportation and environmental protection have brought pressure to silk companies. Third, the gradual appreciation of *** has led to an increase in export costs. In the first half of this year, the *** appreciated by 0.7% and 18.1% against the US dollar and the Euro, respectively, and the cost of silk exports increased. Foreign investors' expectations for the appreciation of the renminbi may continue to weaken the export competitiveness of silk products.

(C) the effectiveness of sericulture production increased substantially, but the upward trend can not be sustained <br> <br> presented this spring sericulture production volume and price situation, a substantial increase in production efficiency. The purchase prices of spring eel in major producing provinces such as Guangxi, Jiangsu, Zhejiang, and Shandong all exceeded the historical highest levels. According to the preliminary statistics from the Ministry of Commerce, the amount of spring bee seed was 7.11 million, an increase of 12.1% year-on-year; the output of silkworm cocoon was 248,000 tons, an increase of 9% year-on-year; the average price was 15,31 yuan per carat (50 kg), up 57.1% year-on-year.

However, the sharp increase in this efficiency is unlikely to continue. On the one hand, the high purchasing price of silkworm cocoon is a “double-edged sword”. Although it can stimulate the enthusiasm of silkworm farming, but in the context of the unclear recovery of silk exports, it may lead to the transformation of supply and demand, affecting the overall development of the industry; On the other hand, there is limited space for the development of sericulture production. According to statistics, the total area of ​​mulberry gardens this spring is 11.733 million mu, which is 59,000 mu less than that of the same period of last year. The area of ​​spring mulberry gardens has declined for three consecutive years. In addition, the rising labor costs of sericulture production all over the country will adversely affect the sustainable development of sericulture production.

In addition, there are still many bottlenecks in the development of the silk industry: the quality of the high-quality cocoon in the upper reaches is not strong, and the scale and intensification need to be further improved; the production and processing technologies in the middle reaches are poor, and the research and development of commonality and key technologies are insufficient. The tasks of emission reduction are heavy; the downstream marketing, product design and innovation ability are weak, and the brand competitiveness is not strong. All these issues require us to give sufficient attention and make great efforts to resolve them.

Third, take effective measures to promote the steady development of silk industry <br> <br> Although there are many uncertain factors in the development of silk industry, the silk industry prospects remain bright. China has a long-standing silk culture, which has accumulated profound knowledge for the silk and silk industry. Many contemporary art uses silk as raw material, which shows that silk has incomparable noble qualities. Silkworm gene map has made major breakthroughs, embodying silk and cutting-edge silk. The organic combination of science and technology; silk can also be developed into health products, cosmetics and artificial skin, indicating that the development of silk products also has a vast space.

To this end, we must strengthen the confidence of development. In the coming period, the general idea of ​​the silk work will be: taking the scientific outlook on development as the guiding line, and using “adjusting structure, creating brand, and promoting upgrading” as the main line, with the main content of improving agricultural production, improving industrial level, and optimizing trade structure. Platform construction, policy guidance, and reserve regulation are the means to vigorously promote technological innovation, brand building and industrial upgrading, comprehensively enhance industrial competitiveness, and promote the steady development of the silk industry.

The implementation of development ideas requires that we must further study the development trend and laws of the silk industry. I believe that the silk industry has the following development trends and laws:

First, the decisive role of the market has further increased. There are roughly two different models for the current business operations. One is to find the market first, and the other is to find the market first. Although this is a difference in philosophy, it affects the success or failure of the company. Only by adapting to the market can an enterprise survive, and the industry can develop. The size of the future development of the silk industry depends on whether it can adapt to changes in the market and whether it can organize production according to the needs of the market.

Second, the integration process at home and abroad is irreversible. Although after the financial crisis, global trade protectionism has risen, the trend of economic globalization is irreversible. This is determined by comparative costs and comparative benefits. It does not shift from the will of any person or any country. The pattern of "Chinese production and world consumption" of silk products has already taken shape. Faced with increasingly fierce market competition, enterprises must accelerate the pace of integration into the international market, make full use of both domestic and international market resources, reduce production costs, expand market space, and increase market competitiveness and market share.

Third, the organizational form of the supply chain will develop rapidly. The future competition between industries will be the competition between supply chains. The traditional supply chain organization methods are mostly loose supply and sales relationships, trading relationships, unstable cooperation relationships, and poor anti-risk capabilities. Only when you form a supply chain where you have me, you have me, you share risks, and your interests are shared, do you have long-term vitality.

Fourth, technological innovation has become the engine of industrial development. The explosive growth of the silk industry has been inseparable from the technological transformation. The silk socks of the 1930s, the sand-washed outerwear of the 1980s, the silk underwear of the 1990s, and the mixed textiles of recent years were the result of technological innovations. Future enterprise competition will mainly be the competition of technological innovation ability. Enterprises that stick to traditional technologies will be eliminated by the market.

Fifth, the brand will become an important factor in the distribution of wealth. The brand is the crystallization of independent innovation of enterprises, the carrier of quality and reputation, the identity card for enterprises to open up the market, and the pass for enterprises to enter the fast track. Whether or not brand-name companies and brand-name products can emerge will be an important indicator of whether they can become strong silk countries.