One of the most significant challenges facing the Chinese cotton industry involves labor – both in terms of cost and location. As the countryΆs economy continues to expand, higher-paying jobs are increasingly moving to urban areas, while the cost of paying those who stay in farming areas continues to rise.

As a result, cotton growers are beginning to pool their efforts and combine their farms to achieve economies of scale, said Lu Huaiyu, president of the Cotton Farmer Cooperative Branch (CFCB) of the China Cotton Association, during an exclusive interview with Cotton International in Beijing.

“For example, if six farmers came together in a given region, five of them might rent their land to one grower, who will stay and cultivate cotton while the others go to the urban areas to find other types of work,” Huaiyu said. “By consolidating smaller farms in this way, all of the growers are able to maximize their incomes.”

Huaiyu added that the problem of rising labor costs is not exclusive to cotton, but is affecting all sectors of China's agriculture industry. Improving and increasing the use of technology in cotton farming is one of the top goals of CFCB. Bt seed was introduced to China nearly 15 years ago and has helped the country dramatically improve its yields, and cotton industry stakeholders are now incresingly mechanizing the process, including increased use of machine pickers.

CFCB is a non-profit trade organization inside of China's Ministry of Civil Affairs. It is voluntarily formed by cotton farmers, relevant cotton enterprises and cotton farmer cooperatives, under the leadership of China Cotton Association. CFCB aims to provide service,
coordination, autonomy, organization and rights-protection in cotton planting, thus serving as a link between the cotton farmers and the government and to promote the healthy, sustainable development of Chinese cotton industry.