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Feed Conversion Ratio, Profitability and Farm Size in China’s Pig Industry

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  • Wang, Dan
  • Huang, Jikun
  • Lohmar, Brian

Abstract

The paper is based on a survey we have designed to document the feeding practices in China’s hog industry. We estimate the live weight FCR to be 2.99, in which commercialized farms (>500 head/year) are the most efficient with FCR of 2.73, followed by specialized farms (50-499 head/year) of 2.90, and the main inefficiency in feeding comes from backyard (<10 head/year) and small household farms (10-49 head/year), with FCRs to be 3.03 and 3.99.The FCRs and the farm size have a clear inverse relationship, but the correlation between profit and farm size is not significant, suggesting further structural change toward larger operations will be slow. In addition, managerial variables have significant impacts on FCRs: participating training in disease control and using compound feed in the grower/finisher phase can lower the FCR significantly.

Suggested Citation

  • Wang, Dan & Huang, Jikun & Lohmar, Brian, 2015. "Feed Conversion Ratio, Profitability and Farm Size in China’s Pig Industry," 2015 Conference, August 9-14, 2015, Milan, Italy 212621, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212621
    DOI: 10.22004/ag.econ.212621
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    File URL: http://ageconsearch.umn.edu/record/212621/files/Wang-Feeding%20China_s%20Pigs-938.pdf
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    Keywords

    Farm Management; Land Economics/Use; Livestock Production/Industries;

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