Abstract

The hog industry is the core industry in the field of agriculture and animal husbandry in China, which development is related to the improvement of people's quality of life. The production of the hog industry has been restricted by environmental regulations, which needs to reduce costs and improve efficiency. Based on the data of 29 provinces from 2008 to 2019, this paper aims to use the stochastic frontier analysis method to calculate the cost efficiency of fattening pigs, sows, and piglets in three stages of pig production and focuses on the impact of environmental regulation policies on cost efficiency. The study found that the cost efficiency of fattening pigs, sows, and piglets in China were 0.77, 0.79, and 0.53, respectively, and the efficiency losses were 23%, 21%, and 47%, respectively. The impact of environmental regulation policies on the cost efficiency of fattening pigs showed an ' N ' trend, and the impact on the cost efficiency of sows and piglets showed an inverted ' N ' trend. For fattening pigs, increasing the intensity of environmental regulation, and exceeding the second inflection point of the ' N ' curve can achieve the dual goals of environmental governance and cost reduction and efficiency increase. For sows, reducing the intensity of environmental regulation appropriately can avoid cost-efficiency loss. For piglets, environmental regulation policies have not effectively incentives the cost efficiency of piglets. In addition, raising the level of technology investment in fattening pigs and sows can achieve cost efficiency gains, and can farmers use emerging financial product tools such as ' insurance + futures ' to avoid market risks and efficiency losses.

Highlights

  • The hog industry occupies an essential position in the Chinese animal husbandry industry

  • Frontier 4.1 is used to estimate the estimated cost efficiency of fattening pigs, sows, and piglets based on the stochastic frontier cost model

  • Facing the dual constraints of resources and environment, how to reduce production costs and achieve efficiency gains has become an unavoidable problem for the sustainable development of the hog industry

Read more

Summary

Introduction

The hog industry occupies an essential position in the Chinese animal husbandry industry. As the receiver of the price of input factors, pig farmers will choose to use limited feed resources, labor resources, and land resources to increase their breeding output to achieve the goal of maximizing profits. Estimation of cost efficiency of fattening pigs, sows, and piglets

Objectives
Methods
Results
Conclusion
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call