Purpose: The purpose of this paper is to examine whether Chinese pork reserve regulation policy fulfills its function in stabilizing market prices and simultaneously to theoretically and empirically analyze the causes leading to the failure of Chinese Government’s intervention in the market, especially in the context of asymmetric pork and hog price information transmission. Design/methodology/approach: A modified Reserve-Cobweb model based on the competitive storage model developed by Muth in 1961 is employed to examine the transmission effect of hog and pork prices under the setting of Chinese Government’s pork reserve regulation policy, using the data on Chinese hog and pork prices from June 2009 to June 2015. Findings: While the Reserve-Cobweb model provides theoretical insights, suggesting that the implementation of the government’s reserve policy tool to control price volatility actually leads to increased price volatility, the empirical results indicate that the policy induces hypercorrection and impels greater price volatility, especially in the context of existence of asymmetric price information transmission. Social implications: The Chinese Government should reduce excessive pork price intervention and instead allow the market to play its role in the hog and pork markets. Originality/value: This paper develops a modified Reserve-Cobweb model based on the price transmission effect on different links within the agricultural products supply chain, which is used to empirically validate the existence of asymmetric price information transmission between pork and hog price in China.
10 May 2023 in International Journal of Pest Management
Pest identification and management in cotton (Gossypium hirsutum L.) cultivation are key factors in cotton production, but farmers’ knowledge of those factors is often poor. The aim of this study was to determine farmers’ knowledge of cotton pests, decision for pesticide selection, and their effect on cotton production efficiency. The stochastic frontier analysis was used to estimate cotton production efficiency and a binary logit model was applied to determine factors associated with cotton production efficiency. Farmers identified insect pests as a major cause of damage to cotton production, followed by weeds and diseases. The majority of the farmers applied chemical pesticides (87.9%) to protect cotton from pests and selected pesticides recommended by their input dealer (58%). Most farmers (58.0%) had moderate technical efficiency (between 0.80 and 0.90). The high levels of education, large farm size, good knowledge of cotton insect pests, and use of mechanical pest management were significant factors (p < 0.05) supporting cotton production efficiency. Training on cotton pest identification, pesticide selection and use is important to enhance cotton production efficiency in Pakistan.
30 April 2024 in China Agricultural Economic Review
Purpose: This paper aims to examine whether China's grain price support policy has distorted the grain market price.Design/methodology/approach: The time-varying differences-in-differences (DID) model is used to study the impact of support policies on grain prices, and it is combined with the event study method to explore the dynamic effects of price support policy. Panel data model is used to study the effect of the price support policy on price formation for national grain market prices. In addition, we apply the smooth transformation (STR) model to verify whether there is a distortion in the transmission of grain prices among different markets in China and from the international market to China’s market.Findings: China’s grain price support policy plays a significant role in rising grain market prices, weakens the decisive role of the market mechanism in the formation of grain prices, hinders the spatial transmission of market price signals and decreases the effect of price transmission from the world market to China’s market.Research limitations/implications: In order to ensure both the stability of grain production as well as the market stability, and also to ensure that intervention policies do not distort the food market, the minimum purchase price of grain and market regulation policies should be adjusted as follows: (1) price support policy should be shifted to an income support policy and (2) reasonably determine the scale of reserves and implement a grain minimum purchase price policy in limited areas.Originality/value: Our findings are relevant for understanding the effect of China's grain price support policies on the implementation regions and the price transmission effect, which provide reference experience for developing countries to implement food price policies.
Improper stakeholder practices are considered a primary driver of food loss. This study aims to investigate the consequences of pre- and post-harvest practices on extending the shelf life of agro-food products, identifying which practices yield the highest marginal returns for quality. Using Fractional Regression Models (FRM) and Ordinary Least Squares (OLS), the research analyzed data from 343 Egyptian grape farmers and intermediaries. Key findings at the farmer level include significant food loss reductions through drip irrigation (13.9%), avoiding maturity-accelerating chemicals (24%), increased farmer-cultivated area (6.1%), early morning harvesting (8.7%), and improved packing (13.7%), but delayed harvesting increased losses (21.6%). For intermediaries, longer distances to market increased losses by 0.15%, while using proper storage, marketing in the formal markets, and using an appropriate transportation mode reduced losses by 65.9%, 13.8%, and 7.9%, respectively. Furthermore, the interaction between these practices significantly reduced the share of losses. The study emphasizes the need for increased public–private partnerships in agro-food logistics and improved knowledge dissemination through agricultural extension services and agri-cooperatives to achieve sustainable food production and consumption. This framework ensures robust, policy-actionable insights into how stakeholders’ behaviors influence postharvest losses (PHL). The findings can inform policymakers and agribusiness managers in designing cost-efficient strategies for reducing PHL and promoting sustainable food systems.
26 July 2024 in Agricultural Economics (zemědělská Ekonomika)
The Regional Comprehensive Economic Partnership (RCEP) agreement is an important free trade agreement in the Asia Pacific region. The implementation of RCEP is greatly significant for ensuring the effective supply of agricultural products to m...