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Trend of China’ s jute and kenaf textile production: There are some outstanding problems facing China’ s jute and kenaf textile industry. Firstly, the production capacity of this industry remains much higher than actual requirements. Secondly, the production scale of China’ s jute and kenaf textile mills is generally too small due to the lack of effective guidance and clear standard set by the government policy. Thirdly, as a result of long years of operating in deficit, jute and kenaf textile mills are short of funds for technical renovation. Their equipment is old and backward with poor working conditions with workers doing heavy manual labour. Fourthly, the mills are producing very simple products, and are unable to develop new products to meet the changing market demands. |
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China's Jute and Kenaf Market: Review and Prospects | |||||
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Therefore, it appears that China’ s jute and kenaf textile industry has to continue to reduce its production capacity. At the same time, it should raise its capacity to develop new products and to adjust the product mix by expanding the use of jute and kenaf for more purposes. We believe that in the next 10 years, China’ s jute and kenaf textile industry will face both challenges and opportunities. On the one hand, if the industry continues to rely on producing gunny bags and does not make big strategic changes, it will gradually wither. |
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On the other hand, if the industry can make a breakthrough to some extent in developing new products, this industry will have an opportunity to renew itself. Because China is a populous nation with very limited forestry resources, the use of jute and kenaf for making paper will have broad potential to exert far reaching influence on jute and kenaf consumption. If, in the year of 2010, consumption for making paper can account for 30 to 50 percent of the total consumption of China’s jute and kenaf fibre, it may thoroughly reverse the long trend of declining demand for jute and kenaf in the country. On the basis of the above analysis, we believe that, in the year of 2010, China’ s jute and kenaf textile industry could demand 250 000 to 300 000 tonnes of jute and kenaf each year. |
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The production, marketing and
industrial processing of jute and kenaf in China will face serious challenges
and meet with development opportunities in the next 10 years. If China’ s jute
and kenaf industry can make a breakthrough in using jute and kenaf for the
manufacture of paper and for other non-traditional purposes, the trend of
declining demand and production of jute and kenaf since the eighties can be
reversed. Then jute and kenaf production and demand will be able to maintain a
basic balance with annual jute and kenaf output kept at 250 000 to 300 000
tonnes. Annual output of gunny bags will remain below 200 million and the
imports of jute and kenaf will be kept at 10 000 to 20 000 tonnes. |
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