China's booming livestock industry: household income, specialization, and exit

China's booming livestock industry: household income, specialization, and exit China's production of livestock products has generally kept pace with her rapidly increasing demand. Over‐supply and market corrections for various livestock products took place over the latter part of the 1990s and large numbers of householders exited this type of production. Using household survey data, we estimate the relationship between a household's specialization in livestock production and household net income in 1995, and use a logit model to explore some predictors of household exit from livestock production over the following decade of market instability. We conclude that specialist livestock households with access to necessary skills, technologies, and markets increase their incomes from further livestock specialization in the base year, whereas those to whom livestock production is relatively unimportant can increase household incomes by diverting their resources away from animal husbandry. It was specialist rather than diversified livestock households that tended to bear the brunt of the adjustment to unfavorable price movements over the decade post‐1995. Policy concerns include the exit of larger‐scale specialized producers who tended to earn relatively high household incomes in 1995, barriers to the effective formation and operation of horizontal and vertical integration options to help mitigate market instability, the further development of insurance programs and markets for livestock producers, and development assistance to livestock households that for various reasons cannot increase scale and specialization. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Agricultural Economics Wiley

China's booming livestock industry: household income, specialization, and exit

Agricultural Economics, Volume 40 (6) – Nov 1, 2009

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Publisher
Wiley
Copyright
Copyright © 2009 Wiley Subscription Services, Inc., A Wiley Company
ISSN
0169-5150
eISSN
1574-0862
D.O.I.
10.1111/j.1574-0862.2009.00402.x
Publisher site
See Article on Publisher Site

Abstract

China's production of livestock products has generally kept pace with her rapidly increasing demand. Over‐supply and market corrections for various livestock products took place over the latter part of the 1990s and large numbers of householders exited this type of production. Using household survey data, we estimate the relationship between a household's specialization in livestock production and household net income in 1995, and use a logit model to explore some predictors of household exit from livestock production over the following decade of market instability. We conclude that specialist livestock households with access to necessary skills, technologies, and markets increase their incomes from further livestock specialization in the base year, whereas those to whom livestock production is relatively unimportant can increase household incomes by diverting their resources away from animal husbandry. It was specialist rather than diversified livestock households that tended to bear the brunt of the adjustment to unfavorable price movements over the decade post‐1995. Policy concerns include the exit of larger‐scale specialized producers who tended to earn relatively high household incomes in 1995, barriers to the effective formation and operation of horizontal and vertical integration options to help mitigate market instability, the further development of insurance programs and markets for livestock producers, and development assistance to livestock households that for various reasons cannot increase scale and specialization.

Journal

Agricultural EconomicsWiley

Published: Nov 1, 2009

Keywords: ; ; ; ; ;

References

  • Determinants of income diversification amongst rural households in Southern Mali
    Abdulai, A.; CroleRees, A.
  • Estimation of Agricultural Production Relations in the LUC Model for China
    Albersen, P.; Fischer, G.; Keyzer, M.; Sun, L.
  • The dynamics of livelihood diversification in post‐famine Ethiopia
    Block, S.; Webb, P.
  • Determinants and implications of the growing scale of livestock farms in four fast‐growing developing countries
    Delgado, C.L.; Narrod, C.A.; Tiongco, M.M.

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