Research On The Cost Of Foodstuff Production In China

After entering WTO, China's foodstuff production has more opportunity and challenge. The food foodstuff production in China can be divided according to comparing advantages to join international competition for higher production efficiency, on the other hand, the foreign foodstuff products entering China's market may take same side-effects on Chinese food stuff production and the growth farmer's income,even the foodstuff security in China. The price and comparativeness of foodstuff are the key factor of costs of the foodstuff production.In this paper, the costs of foodstuff production and comparing advantage were analyzed for government adjusting the foodstuff production structure, and improving comparing advantage and international comparativeness of food stuff production in China.In the paper, the issue of the change and reason of foodstuff production, the factor affecting costs difference in different areas and the comparing advantage in China was analyzed. Additionally, differences in foodstuff production costs, benefits and the support by governments between China and the United States are compared. The research result are as following.Since the reforming and open door policy,costs of foodstuff production have changed greatly. The change was due to the change in prices of agricultural material and labor.On the other hand, technical progress has taken some effects on the costs of some foodstuffs. The costs in different areas in China are quite different. Though total cost is mainly decided by the production cost, the tax paid in China's foodstuff production has some effects on the cost. The cost from outsides of production is different areas is quit different, also takes side- effects on Chinese farmer's income.The differences in natural conditions and technology are important factors to causeing the regional difference in the total cost. Generally, the input of the change in the cost is decided by both material and labor input. Form side of production scale, Expert for in corn and japanica productions, there are some comparing advantage in is indiza production.China's rice production has its comparing advantage.Corn production, it has smaller comparative advantage, also the comparing advantage of wheat production is obvious and, soybean production has no comparing advantage.Generally, there are some different comparing advantages in China's rice production. Farther more, the comparative advantage of China's japanica production is higher than its indiza. Soybean production has no comparing advantages.On cost side, the unit cost of China's wheat production is less than that of the United States. So the wheat importing from US may not take great side-effects on China's wheat production, and the unit production costs of corn and soybean is in disadvantage.However, there are some advantage, such as high quality, low transportation cost, so the China's corn production may not be rnfluented to great extent.On the other hand, the imported soybean from US may takes great sides effects on China's soybean production.The systems of foodstuff protection price should be improved in order to protect farmer's enthusiasm in foodstuff protection and to develop China's foodstuff production, the cost from outside of production should be cut down as much as possible. Except for improving its quality, the more foodstuff is exported, the more support should be provided by government. The foodstuff production in different areas should be carried out according to their comparative advantages.