China Cocoon Silk Industry Report 2016~2017
According to the statistical data of National Cocoon Silk Office of China, in the year of 2016, the total area of mulberry field throughout China was 11.8951 million mu, reduced by 3.4%; the seed volume was 15.4813 million pieces, reduced by 1.8%; the silk cocoon yield was 0.6204 million tons, reduced by 1.2%, and the silkworm cocoon acquisition mean price was RMB38.35 per kg, rose by 12.9%. In recent five years, the silkworm cocoon yield was declined, but their total yield was still kept above the level of 600,000 tons (see Fig.1).
In view of the silkworm cocoon production of main provinces and municipalities of China: in the year of 2016, the total silkworm cocoon yield of Guangxi Province was 299,500 tons, rose by 4.5% and accounted for 48% of the total yield of China (see Fig. 2); the total silkworm cocoon yield of Sichuan Province and Guangdong Province increased little, but the total silkworm cocoon yield of the other nine provinces, namely Yunnan, Jiangsu, Zhejiang, Shandong, Anhui, Hubei, Chongqing, Shaanxi and Jiangxi, declined in various degrees, where Jiangsu, Zhejiang, Shaanxi and Jiangxi declined hugely by 15.7%, 21.2%, 12.5% and 13.7% respectively.
According to the incomplete statistics, the silkworm cocoon yield of different regions in 2017 was almost equal; however the silkworm cocoon acquisition price was maintained above the level of RMB50.00 per kg; it reached its historical high level.
(2) Stable industrial economy
1. Main product yield is basically equal.
In 2016, the yield of the main product of the enterprise above designated size increased and decreased somewhere. Among which, the raw silk yield was 158,400 tons, rose by 0.51% than that of 2015 (Note: the statistical quantity of the enterprise above designated size in this year reduced, so the data of total yield is lesser); the silk fabrics yield was 668,000,000 meters, rose by 5.82% than that of 2015; the silk quilt yield was 20,740,000 pieces, reduced by 14.62% than that of 2015. In recent five years, the total yield of raw silk was kept increasing at a small rate (see Fig.3).
Fig. 3 Nationwide Raw Silk Yield of China 2011 ~ 2016 (Unit: 10,000 tons)
During the period from January to July 2017, the raw silk yield of China was 85,300 tons, rose by 3.09% on the same period of 2016; the silk fabrics yield was 375,000,000 meters, rose by 1.33% on the same period of 2016; the silk quilt yield was 11,010,000 pieces, decreased by 1.58% on the same period of 2016. It is estimated that the raw silk yield and the silk fabrics yield of China would increase a little.
2. Industrial economy growth upturns gradually
According to the statistical data of the National Bureau of Statistics of China, the main business income of the enterprises above the designated size of the whole industry in 2016 (Note: excluding the silk garment and product enterprises, the same below) was RMB127.391 billion, rose by 4.48%; the profit was RMB6.947 billion, rose by 4.59%.
During the period from January to July 2017, the main business income of the enterprises above the designated size of the whole industry was RMB73.277 billion, rose by 9.71% than the same period of 2016; the profit was RMB3.566 billion, rose by 19.58% than the same period of 2016; where the main business and profit growth was respectively higher than the level of 2016; it reflects the progressive upturn of the industrial prospect (see Fig. 4 and 5).
Fig. 4 Growth (%) of main business of silk industry 2011 ~ 2017
图5 2011-2017年丝绸行业利润增速情况（同比%）
Fig. 5 Growth (%) of profit of silk industry 2011~ 2017
According to the statistics of China Customs, the real silk product export value of China in 2016 was US$2.936 billion, decreased by 6.69%; it had been decreased for consecutive three years. During the period from January to July 2017, the real silk product export value of China was US$2.49 billion, rose by 78.88% than the same period of 2016; where the silk product export value was US$0.303 billion, rose by 2.09% than the same period of 2016; the silk fabrics export value was US$0.357 billion, rose by 8.33% than the same period of 2016; the real silk garment export value was US$1.83 billion, rose by 159.26% than the same period of 2016. The huge growth of real silk garment export has become the biggest highlight of the industrial export this year. It is estimated that the silk product export value of China in the second half of 2017 would continue the trend of growth.
Fig. 6 Real Silk Product Export Value of China During July 2016 ~ July 2017 (US$10,000)
(4) Cocoon silk price reaches the historical high
Since the beginning of the year 2016, the cocoon silk price, pulled by the domestic and international consumption demand, has been adjusted upwards. By the end of September 2017, the price of dried cocoon and raw silk was RMB113,600 per ton and RMB468,900 per ton respectively, rose by 40.05% and 60.53% respectively than the beginning of 2016, both reached their historical high again (see Fig. 7 and 8).
Fig. 7 Trend Chart of Dried Cocoon Price During January 2016 ~ September 2017
(Price: RMB10,000 per ton)
Fig. Trend Chart of Raw Silk of 3A Level During January 2016 ~ September 2017
（ Price: RMB10,000 per ton）
Note: the price data aforesaid came from Chinese Cocoon Silk Trading Market.
II. Current development situations before Chinese cocoon silk industry
In view of the international and domestic situation, Chinese cocoon silk industry is still facing with a huge reform and innovation task, and thence is facing with the co-existence of opportunity and challenge in future. It is mainly represented by the following aspects:
(1) New opportunity
Secondly, it is the opportunity brought by the new round of industrial revolution and consumption revolution. China’s government has promulgated the Chinese Manufacture 2025 to focus on expediting the implementation of network-based powerful nation strategy and the “Internet +” action plan, so the personalized customization, mobile-end fast payment, shared economy and green consumption are tending to become the market consumption fashion, and which are beneficial to push the traditional silk cloth production technology, equipment and marketing mode to realize comprehensive transformation and upgrading.
Thirdly it is the opportunity brought by the division of global silk industry chain. In the context of global economy re-equilibrium and industrial pattern readjustment, Chinese cocoon silk industry has solid basis and the silk consumption habit has a long history, therefore there is bigger expansion space on the aspects of cocoon silk material production, silk cloth equipment research and manufacture and silk product creativity design.
Fourthly, it is the opportunity brought by the "One Belt One Road" national strategy. The “One Belt One Road” runs through the Eurasian continent, all countries along the line have close economic and trade contact, and the huge growth potential of the silk trade at home and abroad will create more and new business opportunities for domestic silk enterprises for “going out”.
Secondly, it is the challenge brought by the product structure change. China is transforming from the largest export country of raw silk and greige to the largest terminal silk product production and export country. So the one how to optimize product structure, take the terminal product of silk garment as the breakthrough, and open the survival space of silk industry efficiently is the issue related to the development of the whole silk industry.
Thirdly, it is the challenge brought by the market structure change. The whole domestic silk distribution market is transforming from the one dominated by the export in the past to the one in which the international and domestic market co-exist. So the one how to develop and maintain the international and domestic market, and let the export-oriented enterprise of domestic silk realize business transformation is the urgent affair.
Fourthly, it is the challenge brought by the competition of multiple fibers. As the global textile technology advances, the natural silk and other natural fibers are continuously impacted by other multiple low-priced synthetic fibers. So the issue how to give full play to the advantages of silk fiber, adopt goods points and avoid shortcomings, and make the best use of everything is the key to improve the competitiveness of silk product.
During the thirteen 5-year period, Chinese cocoon silk industry needs to further carry out the Outline of Constructing Powerful Nation of Textiles (2011-2020), Textile Industry Development Planning (2016—2020), Development Outline of Cocoon Silk Industry During Thirteen 5-yer Period, continues to insist in the market orientation and innovation drive, take the one to improve quality and efficiency as the center and the supply side structural reform as the main line, surround five development concepts of "innovation, coordination, green, openness and share", foster the new advantages and create new driving force, and then push to realize more comprehensive transformation and upgrading.
1. “Innovation” – new equipment, new technology and new product. The key is to aim to the technical bottle neck and weak link of the industry, and then consolidate the research cooperation of scientific research institutions and enterprises on the aspects of production, teaching and research, enhance the research, development and application of the silk cocoon harvesting and drying equipments, intelligentized silk reeling equipments, electronic detection of raw silk and other key equipments related to short-flow processing of raw silk, explore the way to solve the fundamental problem of high labor cost, low production efficiency and labor-intensiveness of the industry by applying the “robots”, consolidate the research, development and promotion of new digital printing, automatic dispatching of dyeing material, online monitoring and detection, and application of functional after-finish technology, and drive the construction of intelligent new silk factory. Besides, Chinese cocoon silk industry will consolidate the research, development, design and input of new silk product, expedite the development of composite, differentiated and functional new silk fiber and the products containing silk textile, and promote the upgrade of traditional silk products. Moreover, Chinese cocoon silk industry will vigorously develop the derivative new products suitable for ornament, health care and industry consumption, widen the application field of silk product, meet the diversified and multilevel new consumption demands.
2. “Coordination” – Adjusting structure, promoting upgrade and consolidating basis. Chinese cocoon silk industry needs to continue to adjust and optimize the industrial and regional structure, establish the new pattern benefiting to complement each other’s advantages of Chinese and western regions and realize their benign interaction and coordinated development. In the eastern region of China, Chinese cocoon silk industry will continuously give full play to the advantages on the aspects of technology, capital, talent and information, develop vigorously the terminal products of silk garments, dresses and home textiles, lead the product structure optimization and industrial quality improvement and synergy. In the western and middle region of China, Chinese cocoon silk industry will continue to consolidate and improve the premium mulberry silk base, explore to establish the supporting industry chain of silk reeling, silk weaving and dyeing, guarantee the fundamental raw material supply, promote the centralization of cocoon silk production in the advantageous regions and enterprises, continue to improve the industrial clustering level, take advantage of the national targeted poverty alleviation and land circulation policies to boost the cooperation mode of “Company + base + farmers”, family farms, silkworm raiser cooperatives, improve the benefit-bonded long-term mechanism, and consolidate the sustainable development basis of cocoon silk industry.
3. “Green” – clean production, resources recycling and ecological protection. Chinese cocoon silk industry will expedite to promote the wastewater zero discharging of silk reeling, wastewater and thermal energy recycling of dyeing and printing, new digital printing and electronic weaving and other advanced energy-saving and emission-reducing technology, as well as the clean production level of the whole industry. Besides, Chinese cocoon silk industry will further expedite the circulation and comprehensive utilization of cocoon silk resources, enhance the development in the industrialized field of food, medical service, health service and bioengineering, establish the comprehensive utilization pilot base and improve the comprehensive industrial benefits. Moreover Chinese cocoon silk industry will actively explore the practice for planting mulberry in the desertified lands, rocky- desertified regions and desertification regions so as to give full play to the ecological protection of mulberry on the aspects of wind prevention and sand fixation, water conservation and water and soil conservation.
4. “Openness” – going out, attracting and enhancing cooperation. Chinese cocoon silk industry encourages enterprises to focus on the countries along the line of “One Belt One Road”, conduct widely foreign investment cooperation, support the advantageous enterprises to acquire overseas research and development institutions, brand and marketing network, integrate global industry chain resource, increase enterprise scale and consolidate the international competitiveness of industry. Besides, Chinese cocoon silk industry encourages to import the badly-needed key equipments, technologies, services and talents, pay attention to their digestive absorption and integrated innovation, participate actively in the organization of international silk exchange activity and folk contact, fulfill the due responsibility and liability of powerful silk nation, and then further deepen the trade interaction, as well as the all-around and multi-level cooperation among all countries.
5. "Share” - intangible heritage protection, cultural inheritance and connectivity. Chinese cocoon silk industry will consolidate the protection for the historical cultural relics and remains of cocoon silk fabrics, intangible cultural heritage, as well as the traditional silk skill of Sichuan figured satin, Song brocade, Yunnan brocade, silk textile, embroidery and gambiered canton silk, encourage different regions to construct silk museum, special silk town, cocoon silk tourism science base, inherit and carry forward Chinese silk culture. Besides, Chinese cocoon silk industry will lead enterprises to realize organic integration between silk culture elements and market demands, improve the cultural added value of silk product, integrate with the Internet economy actively, boost the integrative development of non-store retailing and online and offline mode, and explore to establish multiple new and experience-oriented consumption channels and modes. Moreover Chinese cocoon silk industry will consolidate the specification and construction of bulk commodity electronic trading market of cocoon silk, promote the connectivity and share of information resources of cocoon silk’s production, trade and price with the international silk industry.
by Qian Youqing, the vice chairman and secretary general of Chinese Silk Association
(October 20, 2017)
