Feed-Grain Consumption by Traditional Pork-Producing Households in China

Economic reforms in China's agricultural sector initiated in the late 1970s led to rapid structural change in China's pork sector. Swine production units have declined in number but increased in size. Using household survey data from seven provinces in China, feed-grain demand by pork producers is estimated for three different size categories: producers with annual pork output of less than 200 kg, between 200 kg and 500 kg, and greater than 500 kg. The results show that the households slaughtering one or two pigs each year are not market-oriented in their pork production. However, households producing more than 200 kg are quite price-responsive, especially households slaughtering more than five or six hogs each year. Wald tests for structural change indicate there is significant structural change as producers increase their scale of production and rely more heavily on markets for feed inputs.