Research On Economic Benefits And The Efficiency Of Fresh Milk Production In China

At present, the milk production in China mainly rely on extensive production. Although the quantity of output grows rapidly, this mode of production has brought a number of contradictions and problems. The low average level of raw and fresh milk production, the frequent occurrence of dairy food safety incidents, the impact of imports increase, the decline in economic benefits of dairy farmers, the part of the dairy farmers survival plight, and etc. With the 《free trade agreement between the government of China and the government of Singapore》 signed, the degree of international trade will further deepen, and present situation of low quality, low earnings, high cost, high milk prices, high import, high risk will lead to the dairy industry in China face difficulties, and the domestic raw and fresh milk supply can not conducive to the stability and safety. So, there is an urgent need to dairy industry to achieve the economic growth mode from extensive to intensive changes. We should depend on the improvement of using efficiency of input factors and economic efficiency of raw and fresh milk production to increase milk production in China, promote the market competitiveness and promote the sustainable development of the dairy industry.The paper uses field survey, statistical analysis, econometric analysis, comparative analysis and other research methods comprehensively. First of all, the paper analyses the World and Chinese production of raw and fresh milk, dairy processing, consumption and trade of China and the effect to raw and fresh milk production; Then, according to China milk production data, the paper analyses the risk and the effect factors of cost, yield and profit; After that, based on the raw and fresh milk production cost and income and single factor productivity, the paper analyses the input and output of raw and fresh milk production in different feeding way; Finally, the paper conducted an in-depth study and discussion about the economic efficiency of raw and fresh milk production in China. On the one hand, discuss the raw and fresh milk production in the comprehensive technical efficiency and total factor productivity from the macro level; In the other hand, from the micro level, analyses milk production efficiency and influence factors of the production of raw and fresh milk based on the survey data. This paper also focuses on economic benefits and efficiency of raw and fresh milk production and expects to do some innovation in both the research content and the research methods and other aspects, providing certain theoretical basis of improving the economic efficiency of fresh milk production, allocating production resources rationally, reducing production cost and increasing farmers’income but also providing reference for relevant departments to formulate industry development policy so that we can contribute to enrich and improve the theory and provide reference to relevant departments to formulate the policy of industrial development.The main conclusions of this paper are:(1) Both the milk yield and production distribution are changed, and China will become the main engine of global growth in raw and fresh milk market, and development of dairy industry has a transformation from quantity to quality and efficiency. (2) There is a growth trend of the total cost of China’s milk production and total production value, and material costs and labor costs rose sharply further, which lead to farmers’ profit decrease rapidly and the economic downturn. (3) the cost, profit and risk of fresh milk production is different, in general, profit risks that farmers face are greater than cost and yield risks. (4) From a macro perspective, using multi stage DEA model(BCC model) based on the assumption of the technical efficiency, we can see that Chinese raw and fresh milk production has not yet reached the efficient production frontier, and the main driver of its growth from pure technical efficiency progress. The research of DEA-Malmquist index method based on BCC model show that the raw and fresh milk production, total factor productivity at an annual rate of 1.6% increase, and the technology progress is the main driving force. It is not same that change characteristics of different feeding methods or the comprehensive technical efficiency or total factor productivity in different provinces.(5) From the micro level, milk production of farmers in China has significant technical and economic efficiency losses, the overall level is not high, and there is significant difference between different breeding scale and provinces. Based on the above research, this paper puts forward relevant policy suggestions:(1)Speed up the dairy cattle breed improvement, optimize breed structure; (2) Increase the research development of dairy cow breeding, practical technology and do efforts to promote it; (3) Explore the appropriate scale of dairy farming; (4) Implement the cultivation mode of "Combination of planting and breeding"; (5) Optimize the layout and industrial scale of fresh milk production; (6) the country strengthen to support the development of dairy industry in all aspects further.