IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Productivity, efficiency and structural problems in Chinese dairy farms

  • Xiaohua Yu

Purpose – The purpose of this paper is to identify the structural problem in the Chinese dairy sector. There exists a large number of low-efficiency, small-scale farms, and productivity inequality between small and large farms keeps increasing, which is a possible driving force behind the Melamine scandal in 2008. Design/methodology/approach – Using the stochastic frontier production function, this paper estimates and compares the changes in technology and technical efficiency between backyard, small-scale, medium-scale and large-scale dairy farms in China over the period between 2004 and 2008. Findings – There are compensating effects between technology and technical efficiency. However, low yield for backyard farms is mainly caused by traditional low-yield varieties, even though the technical efficiency is very high, which cannot compensate for the low technology. Research limitations/implications – The author put the assumption of constant return to scale mainly due to the data availability. Such an assumption implies that there are no scale-effects between the different scales in productivity, and the productivity difference is explained by technology and technical efficiency. Practical implications – In order to solve the structural problems, Chinese governments should help small-scale farmers to adopt new high-yield varieties, to subsidize small-scale farmers, and to train farmers to master the complicated skills for raising high-yield varieties. Originality/value – The paper gives another possible explanation for the Melamine scandal of milk powder in 2008. If the structural problem cannot be solved, similar food safety scandals could happen once again.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.emeraldinsight.com/journals.htm?issn=1756-137x&volume=4&issue=2&articleid=17031361&show=abstract
Download Restriction: Cannot be freely downloaded

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

Volume (Year): 4 (2012)
Issue (Month): 2 (May)
Pages: 168-175

as
in new window

Handle: RePEc:eme:caerpp:v:4:y:2012:i:2:p:168-175
Contact details of provider: Web page: http://www.emeraldinsight.com

Order Information: Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Web: http://www.emeraldinsight.com/caer.htm Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. repec:cup:cbooks:9780521666633 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eme:caerpp:v:4:y:2012:i:2:p:168-175. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.