Purpose: The purpose of this paper is to identify the effects of recent demographic transition and rising labor costs on agricultural production structure and pattern in China during 1998-2012. Design/methodology/approach: The authors, first, theoretically discuss the effects of changing relative input prices due to rising labor cost on producers’ decisions regarding input mix (substitution effect), output level, and product quality (output effect). A logarithmic mean Divisia index decomposition method is then applied to empirically identify these effects at aggregated levels, followed by an analysis based on the visualization of land use indicators on changing cropping patterns across Chinese provinces. Findings: The authors find that tightened effective agricultural labor supply and rises in rural labor costs are associated with divergent changes in input mixes and output choices across products. Producers of land-intensive products focusing more on input mix adjustment, while those of labor-intensive products seem to more likely to adjust output choices. Producers’ adaption strategies also varied across Chinese provinces due to natural conditions, leading to shifts and concentrations in the regional distribution of agricultural products, with lower-value bulk products concentrating in the plain areas, whereas higher-value horticulture products increasingly prevailing in sloped areas. Originality/value: This paper illustrates how adjustments in input mixes and output choice in Chinese agriculture counteracted disadvantages caused by rising labor costs and how such adjustments are product and region specific. Based on these observations, implications regarding further innovations in production technology and institutional arrangements needed within China’s agricultural sector are highlighted in the paper.
China has experienced an uninterrupted growth of grain output during the past decade. However, a long-term analysis indicates fluctuations in productivity and output levels, as well as dramatic shifts in grain crop mix and regional distribution. This paper, therefore, re-examines the major factors behind the dynamics in China’s grain production over the period of 1978–2013. The Index Decomposition Analysis technique, facilitated by means of Logarithmic Mean Divisia Index, is employed to factorize the changes in China’s grain output into four effects, i.e., yield effect, area effect, crop-mix effect and spatial distribution effect. The results show that yield effect, having been the major driver behind the growth, is experiencing a declining trend over time, with crop-mix effect gaining increasing importance. The results also indicate that changes in crop-mix caused an increase in the total grain output during 2003–2013, however this was due to abandonment of soybean farming, which is not sustainable in terms of self-sufficiency. The effect of spatial distribution has been diminishing ever since 1984. Therefore, re-allocation of areas sown is not likely to damper the sustainability of grain farming.
NGOs and development agencies have a conspicuous presence in facilitating capacity building, access to production resources and markets. Capacity building by NGOs and development agencies is expected to contribute to farm efficiency and sustainability by promoting and enhancing fertilizer use as well as increasing soil fertilities. However, the influence of these factors on technical efficiency as an important dimension of sustainability has not been further explored in Ghana. This study therefore assesses the influence of NGOs on technical efficiency among smallholder soybean farmers by applying stochastic frontier analysis. The data collected from 349 smallholder soybean producers in the three northern regions of Ghana are employed for the analysis. Results show that the mean technical efficiency of soybean production is 0.885, indicating a growth potential of 11.5%. Land area, agro-chemicals and seeds contribute to production growth while labor is over used. We find that NGO facilitation as well as group membership influences technical efficiency. Furthermore, farmers facilitated by NGOs and development agencies are 4.4 p.p. more efficient than non-facilitated farmers. Our study therefore implies that production and efficiency can be improved by providing more services to farmer group members and sustainable interventions from NGOs and social programs.