Economic analysis of different straw supply modes in China

Abstract

Choosing an appropriate straw supply mode is crucial for reducing straw supply costs. This study considers four different supply modes: Farmer-Factory mode, Farmer-Broker-Factory mode, Farmer-Centralized Storage Site-Factory mode, and Farmer-Broker-Centralized Storage Site-Factory mode. Comparing the advantages and disadvantages and economic analysis of each mode are conducted. It is found that straw collection includes artificial and mechanized collection, straw transportation includes tractor and truck transportation, straw storage includes open field storage and centralized storage sites. When collecting 100,000 tons of straw, ordering the different supply modes based on cost result an order (from high to low) of 1A, 3, 2A, 1B, 4, 2B, ordering them based on equipment demand result in an order (from high to low) of 1A, 3, 2A, 1B, 2B, 4, and ordering them based on labor demand result in an order (from high to low) of 1A, 3, 2A, 1B, 4, 2B. It also can be seen that collection cost, transportation cost, and loading and unloading costs are important components of supply cost for each mode. Through the analysis of the six modes, mechanized baling collection can significantly reduce supply cost and equipment and labor requirements. Although intermediate links are added, mode 4 has become an economical supply mode that is also suitable for large-scale straw utilization due to its mechanized operations. As a conclusion, it will likely be the main straw supply mode of the future.