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China’s small-scale hog production and implications for trade: Evidence from a farmer survey

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  • Wang, Qingbin
  • Zhang, Guangxuan
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    Abstract

    Using primary data of 3,327 Chinese farmers and their villages collected through a survey in 2010, this study identifies the factors that affect farmers’ decision to raise hogs and the factors that determine the hog farmers’ production scale and discusses the likely future of small-scale hog production and its potential impacts on China’s pork market and trade. Estimation results of a Heckman model suggest that labor availability, the opportunity of earning income from nonfarm jobs, and the existence of large-scale hog farms and processing facilities in the local area are among the major factors of the participation and scale decisions. As China’s demand for pork has been increasing at a relatively stable rate, China’s pork imports from the U.S. and other nations are increasingly determined by its domestic pork supply, especially the production of small-scale hog farmers due to its sensitivity to price, disease, subsidy, and other factors.

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    File URL: http://purl.umn.edu/125288
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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 125288.

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    Date of creation: 2012
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    Handle: RePEc:ags:aaea12:125288

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    Related research

    Keywords: China’s pork market; U.S. pork exports; Heckman model; Agricultural and Food Policy; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; International Relations/Trade;

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    1. Dermot J. Hayes & Roxanne Clemens, 1997. "Chinese Market for U.S. Pork Exports, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 97-bp14, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    2. Hayes, Dermot J., 1997. "The Chinese Market For U.S. Pork Exports," Trade Research Center Policy Issues Papers 29173, Montana State University, Department of Agricultural Economics and Economics.
    3. Peng, Xuehua & Marchant, Mary A. & Qin, Xiang Dong & Zhuang, Jun, 2003. "Chinese Consumers' Preferences for Livestock Products," 2003 Annual meeting, July 27-30, Montreal, Canada 22253, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    5. Somwaru, Agapi & Zhang, Xiaohui & Tuan, Francis C., 2003. "China'S Hog Production Structure And Efficiency," 2003 Annual meeting, July 27-30, Montreal, Canada 22003, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. William A. Amponsah & Xiang Dong Qin & Xuehua Peng, 2003. "China as a Potential Market for U.S. Pork Exports," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 259-269.
    7. Ortega, David L. & Wang, H. Holly & Wu, Laping, 2009. "Consumer Preferences for U.S. Pork in Urban China," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49184, Agricultural and Applied Economics Association.
    8. Pan, Chenjun & Kinsey, Jean D., 2002. "The Supply Chain Of Pork: U.S. And China," Working Papers 14300, University of Minnesota, The Food Industry Center.
    9. Lohmar, Bryan & Gale, H. Frederick, Jr., 2008. "Who Will China Feed?," Amber Waves, United States Department of Agriculture, Economic Research Service, June.
    10. Costales, Achilles & Delgado, Christopher L. & Catelo, Maria Angeles & Lapar, Ma. Lucila & Tiongco, Marites & Ehui, Simeon K. & Bautista, Anne Zillah, 2007. "Scale and access issues affecting smallholder hog producers in an expanding peri-urban market: Southern Luzon, Philippines," Research reports 151, International Food Policy Research Institute (IFPRI).
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