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Technical and cost efficiency of rural household apple production

Author

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  • Lijia Wang
  • Xuexi Huo
  • Shajahan Kabir

Abstract

Purpose - At the center of apple production province in China, how to increase apple per unit yield and to improve apple production efficiency in Shaanxi become big issues. The objectives of this paper are to investigate the technical efficiency (TE) and cost efficiency (CE) of apple orchard and to analyse determinants which affect apple production efficiency. The paper aims to discuss these issues. Design/methodology/approach - This paper conducts a two‐stage DEA to achieve the objectives. In the first‐stage, a cost minimization model is applied to measure apple production efficiency. Then, a Tobit model is provided to estimate regression coefficients which are used to adjust the efficiency scores in the first‐stage. Findings - The results indicate that TE and CE are rather low in Shaanxi. The research also explores that the inefficient production of apple farmers is caused mainly by two aspects. One is the inefficient apple orchards operation of farmers. The other is the disadvantageous environmental conditions which heavily affect apple growth and fruit bearing situation. Originality/value - Most of the research are based on national statistical data, and only measure the TE. This paper primarily focuses on the estimation of efficiency scores with the data involved in both quantity and price information of traditional inputs and outputs based on 255 apple farmers in Shaanxi. Specifically, This paper also consider farmer's opportunity cost to which little literature refers. The results not only reveal the efficient determinants of apple production, but also provide suggestions for agricultural policy makers.

Suggested Citation

  • Lijia Wang & Xuexi Huo & Shajahan Kabir, 2013. "Technical and cost efficiency of rural household apple production," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 5(3), pages 391-411, August.
    • Handle: RePEc:eme:caerpp:v:5:y:2013:i:3:p:391-411
    DOI: 10.1108/CAER-08-2011-0087
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    Citations

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    Cited by:

    1. Wang, Huaiyu & Bin, Bing & Pede, Valerien O., 2023. "Adoption of ratoon rice and its impact on technical efficiency of rice farming in China," 2023 Annual Meeting, July 23-25, Washington D.C. 335541, Agricultural and Applied Economics Association.
    2. Li Li & Atsushi Tsunekawa & Yangshangyu Zuo & Atsushi Koike, 2019. "Conservation Payments and Technical Efficiency of farm Households Participating in the Grain for Green Program on the Loess Plateau of China," Sustainability, MDPI, vol. 11(16), pages 1-16, August.
    3. CECHURA, Lukas & ZAKOVA KROUPOVA, Zdenka & MALY, Michal & HOCKMANN, Heinrich, 2015. "Scale Efficiency In European Pork Production," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 18(2), pages 1-6, October.
    4. Xingguang Li & Xuexi Huo, 2022. "Agricultural labor markets and the inverse plot size–productivity relationship: Evidence from China's apple growers," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2163-2183, November.
    5. Anirban Nandy & Piyush Kumar Singh & Alok Kumar Singh, 2021. "Systematic Review and Meta- regression Analysis of Technical Efficiency of Agricultural Production Systems," Global Business Review, International Management Institute, vol. 22(2), pages 396-421, April.
    6. Ma, Wanglin & Renwick, Alan & Yuan, Peng & Ratna, Nazmun, 2018. "Agricultural cooperative membership and technical efficiency of apple farmers in China: An analysis accounting for selectivity bias," Food Policy, Elsevier, vol. 81(C), pages 122-132.
    7. Wang LIJIA & Huo XUEXI, 2014. "Transaction Costs Comparison Between Cooperatives And Conventional Apple Producers: A Case Study Of Northwestern China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 233-255, June.
    8. Ruopin Qu & Yongchang Wu & Jing Chen & Glyn D. Jones & Wenjing Li & Shan Jin & Qian Chang & Yiying Cao & Guijun Yang & Zhenhong Li & Lynn J. Frewer, 2020. "Effects of Agricultural Cooperative Society on Farmers’ Technical Efficiency: Evidence from Stochastic Frontier Analysis," Sustainability, MDPI, vol. 12(19), pages 1-13, October.
    9. Lijia, Wang & Xuexi, Huo, 2014. "Grower's Selling Behavior: Transaction Cost Comparison Analysis," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-24.

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