The Analyses Of Raw Cotton Production Cost In China

China is one of the biggest cotton producing and consuming countries in the world, and cotton production plays a vital role in the national economic development. Being a member of the WTO, China is presently faced with the fierce competitions from other cotton producers in the world because of the decrease of the tariff and the increase of importing raw cotton allocation. How to improve the competitive ability of cotton production and reduce the effect of import raw cotton on Chinese cotton production from other countries relate closely with future development of both cotton producers and cotton consumers in China. Cotton production cost is the fundamental factor that determines raw cotton price, and the price of raw cotton is most important factor that affects the competitive ability in the market, it is important to make policy of reducing cotton production cost by analyzing the cost systematically. This research was conducted to investigate the status quo of cotton production cost in China, based on the data from "the Collection for the Cost and Profit of China Agricultural Products" published by China Plan Committee, website of America Cotton Society and International Cotton Consultation Committee. The present situation of cotton production cost, probable preference of cotton production cost in the key cotton producing provinces in China, the factors that affect the cotton production cost were analyzed from the introduction of the definition, classification and development of cotton production cost by the methods of comparison, probable preference, and multiple regression analysis. The data of cotton production costs in the USA, India, Australia and Pakistan were used for comparison. The main results are as follows:The planting expenditure was main cost in China cotton production, and labor, chemical fertilizer and insecticides were main composition of the cost. The difference of the cotton production cost between the provinces in China was significant. In compare to the other countries of the planting cotton, the production cost per 666.7m2 was high, and the cost per 50 kg lint was low, however, the composition of the cost was not reasonable. There were multiple linear regression relationships between production cost per 50 kg lint cotton and labor cost per day, planting area per family and the lint yield per 666.7 m2. The market regulation of cotton production was more efficient than that of the national policy. These results suggest that the reduction of cotton production cost in China require to make policy on planning cotton production region reasonably, developing cotton industries quickly, applying scientific technology greatly and give more governmental support.