Cotton Production in Xinjiang, China

During the past three decades, China’s cotton production has varied significantly. The success of land reform in the late 1970s led cotton production to peak at 6.26 million tons in 1984. However, huge yield loss in 1992 and 1993, due to a severe bollworm infestation in the Yellow River valley and other factors (such as labor price and alternative crop returns et al.), resulted in cotton production decreasing to 3.74 million tons, only 57% of that in 1991. The adoption of Bt cotton, increasing price and favorable government policies in the late 1990s led to a rebound increase in cotton production to increase again. In 2007, total cotton production reached 7.62 million tons.

Another important characteristic of China’s cotton production over time has been  regional changes in production. The major cotton producing areas in China can be divided into three : the Yellow River valley, the Yangtze River valley, and the Northwest. Prior to agricultural reform at the end of 1970s, the Yangtze River valley was the primary production base. However, the share of Yellow River valley in China’s total cotton production rose dramatically from 30 percent in 1978 to over 60 percent in 1984. The Yellow River valley remained the largest cotton production region for over 20 years. Cotton production in northwestern region steadily increased and now this region has replaced the Yellow River valley and become the largest cotton production region in China. The Northwest cotton production region includes primarily the Xinjiang Uighur Autonomous Region plus northwestern Gansu province.

The study provides a detail description of the unique characteristics of the cotton supply chain in this important production region, Xinjiang.  An analysis of the major drivers of the expansion of cotton production in the area and comparisons of relative competitiveness with other regions is provided