China's hog production is undergoing a great transformation due to the soaring demand and changing raising system. Regarding the essential role of pork in Chinese diet, a systematic analysis on the productivity and efficiency of hog production can provide significant implications for policy makers. This paper investigates the productivity and efficiency of hog production and the determinants of technical efficiency in China using a household level panel data(2004–2010). A stochastic frontier translog production function with scaling property in inefficiency term is adopted for hog production analysis, and the determinants of technical efficiency are incorporated in a one-step estimation using maximum likelihood estimation. Our results show that the average technical efficiency of hog production in China is 0.5914. More importantly, we find that specialized farmers have higher technical efficiency than others, and technical efficiency in the eastern region is higher than that in Central and West China.
This article analyses the technical and environmental efficiency of hog production in China using data from the China Agricultural Product Cost-Benefit Compilation(NDRC 2005–2013) and the First National Census of Pollution: Manual of Discharge Coefficient of Livestock and Poultry Industry(IEDA and NIES 2009). The empirical results show a great variation in environmental efficiency, ranging from 0.344 to 0.973 with a mean value of 0.672 that declines over time. Southwest China is found to be the most environmentally efficient region, while the Northeast and the Northwest are the least efficient. Another finding is that technical and environmental efficiencies are highly correlated in hog production; the most environmentally efficient regions are usually found to have high technical efficiency, and vice versa. In addition, we computed the output elasticities with respect to each factor input. The results show that feed is the most efficient input, with an output elasticity of approximately 0.551, which is much higher than the elasticity of the nitrogen surplus, other capital or labour. The output elasticity with respect to the nitrogen surplus is 0.287 on average. Finally, the scale elasticity in hog production is slightly higher than 1.
