Study On The Change Of Food Production’s Cost-benefit In Shandong Province

Food is the primary need for human survival and development. With the worldwide increase of population and rapid development of the economic, the demand for food rises continually. Nevertheless, the limitations of the cultivated land and water resources aggravate the contradiction between food supply and demand, leading to increasingly severe food security issues. As the world’s most populous developing country and the most potential emerging economy, the food safety of China is not only related to the sustainable development of the national economy, but also has a positive impact on the food safety of the whole world. However, with the encouraging paces towards industrialization and urbanization, restricted factors of food production gradually reveal and the situation of ensuring food safety becomes severe. As for China, the key to guarantee food safety is to improve farmers’ enthusiasm of producing grain, which can be achieved by reducing the food production cost and increasing revenue, and can make farmers benefit from producing food. There has always been the problem of high cost and low benefit in the process of food production, and this leads to the falling enthusiasm of farmers and causes a major threat of country’s food security. Therefore, it has important significance to strengthen the research of changes rules and influencing factors of food production’s cost-benefit analysis, so as to further explore the influence on food production, protect the interests of farmers and promote food production.In view of the important status of Shandong province in China’s food production, this article analyses the changes of food production’s cost-benefit in Shandong province since1979and compares that with the United States through methods like literature retrieval, data sorting and qualitative analysis. On this basis, it analyses main influencing factors of food production’s cost-benefit in Shandong from the perspective of value addition and cost fluctuation, probes into the impacts of various factors by related econometric model and expounds the influences on food security. It shows that, although total food output value in Shandong province is increasing since the reform and open policy, the level of food revenue is relatively low. Compared with the United States, the scale of production and operation in Shandong is limited, the subsidies strength is weak and the competitiveness is low. The major factors that influence food production proceedings in Shandong province are the food production, food prices, production costs, and the changes of food production proceedings have significant influence on food production. Owing to the rapid rise in food cost and less breakthrough of food production, increase the food price can add farmers’income, enhance the enthusiasm of farmers and promote food production. According to the study, this paper puts forward suggestions to increase food production proceedings and promote food production from the aspects of deepening food market reform, improving food price subsidies and supporting the development of agricultural science and technology.The innovation of this paper lies in studying the changes of food production’s cost-benefit in Shandong province from development and dynamic perspective, and making a comprehensive exposition of the relationships between food cost-benefit and production. By using more scientific and complete data, this paper forms a database of food production’s cost-benefit in Shandong. At the same time, the suggestions have a general and applicable meaning which can provide beneficial reference for relevant decisions.