Differences and Factors of Raw Milk Productivity between China and the United States

Abstract

In order to explore the differences in the productivity level and influencing factors of raw milk between China and the United States, this study uses the stochastic frontier production function and is based on the input and output of factors of raw milk in China and the United States from 2005 to 2020 to measure the impact of factor inputs on raw milk output and the output differences. The results of the study found that: the inefficiency term of raw milk production technology in China is higher than that in the United States; feed costs and fuel power costs have a significant positive role in promoting the growth of raw milk output in China and the United States; health and epidemic prevention costs, as well as maintenance costs, have significant impacts on the output value of raw milk in China, but they have no significant impact on the output value of raw milk in the United States. In terms of the contribution of each input factor, the contribution share of feed costs to the output value of raw milk in China is 52.53% and 25.74%, respectively, compared to the value of raw milk in the United States; The contribution share of technological progress to the output value of raw milk in China is 34.92%, and 53.77%, respectively, compared to U.S. raw milk production value. In order to narrow the productivity gap with the United States dairy industry, China’s dairy industry must pay attention to the moderate-scale breeding of dairy cows; develop an integrated production mode of planting and breeding; promote the development of grain to feed; accelerate the genetic improvement of dairy cattle populations; and learn from the pasture management experiences of foreign countries.