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On Aug. 29, sponsored by State Cocoon & Silk Coordination Office, 2007 China Spring Silkworm Cocoon Harvest Conference was held in Beihai, a coastal city in Guangxi Zhuang Autonomous Region. 90 people including heads of relatives departments of Ministry of Commerce, Ministry of Agriculture and State Administration for Industry and Commerce and commercial chiefs and company representatives from over 20 provinces, municipalities and autonomous regions attended the conference. The conference summarized the spring cocoon production, price and quality in the first half of this year and predicted the price trend in the second half of this year.

Figures released by the conference show that total area under mulberry of China’s 17 provinces and autonomous regions rises by 11.36 percent to reach 13.7332 mullion mus. Total distribution volume of spring silkworm eggs rises by 10.52 percent to reach 9.5609 million boxes. Total spring cocoon output rises by 11.38 percent to 359.4 thousand tons. Average purchasing price of spring cocoons dropped by 10.99 percent to 936.10 yuan per 520kg.

The conference also predicts there will be some modest growth in the cocoon output during the second half of this year. However, due to pressure on RMB appreciation, increase on silk production costs and expectation on export tax rebate reduction, the export situation in the next coming months is not optimistic. Meantime, rapid development of China’s silk industry lead to the strong demand for silkworm cocoons. On the other hand, silk export situation continues to be relatively weak. Hence, the cocoon and silk materials demand tends to be slowly loose.

In this context, in order to balance the market supply and demand, we see a consensus among the conference participants to sustain stable purchasing price, increase cocoon quality and protect silkworm raisers’ interest as well as stimulate domestic demand and widen consumption space.

Source: 2007 China Spring Silkworm Cocoon Harvest Conference