Production costs of pears and apples in Xinjiang (China)

China is the most important pear producing country in the world, and one of the most important as far as it concerns apples. Nevertheless, its international role is not so relevant: traded volume in relation to production is relatively small yet growing fast. Xinjiang is a large and mainly deserted region in northwest China that covers one-sixth of China's land. However, thanks to abundant water resources, good lighting conditions and altitude, this area represents an ideal setting for pomefruit production, and has in fact a very long tradition. Unfortunately, due to a disadvantaged location and a poor economy this province do not attract enough capitals, passing unnoticed despite of its valuable resources. Economic analysis are therefore necessary to assess to which extent this market turns out to be approachable. The aim of this paper is to describe in detail the situation of the fruit growing industry in Xinjiang, as far as it concerns two important pomefruit varieties: Xiang Li pear, a local and very appreciated variety, and Fuji apple. After locating the most vocated producing areas for both species and identifying the productive standards, we then proceed on counting up the production costs, using a well-established methodology adapted to the particular situation. The target of the analysis are small and mid-size farms, since they represent the vast majority of the orchards of the area. The costs aggregates are: base orchard management cost (BOMC), farm full cost (FFC) and total production cost (TPC). These aggregates group together costs related to similar productive factors. The picture of the situation outlined by this survey is that of a marginal area, where however fruit growing, compared to other agricultural activities, grants a good income. It also emerges that fruit growers in Xinjiang (and in China), are hardly coming out of a situation of general backwardness, striving to adapt to a larger business mainly through exportation to other provinces. Farms are however mainly familiar and small, and only a few big local enterprises seem to possess the right requirements to give local production the right impetus to reach successfully outside markets.