Cost And Profit Of Wheat Production In Jiangsu Province

Wheat production cost and profit in six wheat ecological districts and on seven farms of Jiangsu Province in recent five years were investigated. Supply and demand situations and wheat price trends in recent several years were analysed. The main results were as follows.1 . Wheat production cost in Jiangsu Province decreased gradually in recent years. The cost in Xuhuai wheat district was the highest. Among all cost components, the mechanical cost increased gradually, while others reduced. The decrease of fertilizer cost was the greatest. There was a quadratic curve relation between unit cost and yield. The unit cost was the lowest when the yield was about 400 kg / mu.2. Wheat production profits in Jiangsu Province were not the same among different wheat districts and years. Production costs were lower in Taihu and Quling wheat districts, but higher in Lixiahe,Yanjiang ,Yanhai and Xuhuai wheat districts. The costs were lower in 1998 and 2000. Risk incidence of wheat production in Jiangsu Province was higher in recent years.3. The wheat production cost on farms was a little higher than that in family scale, but all the economical indices were superior. So wheat production on a certain scale was one of the effective ways raising wheat production profit.4. The results indicated that the applied nitrogen amount had a quadratic curve relation with grain yield. Yield and profit increased with the amount of nitrogen appliedunder a certain amount of nitrogen. When 14.61kg/mu N was applied, the profit of wheat production was highest, and the yield was 430.99kg/mu. When the number of basic seedlings with normal sowing date was 12*104 per mu, the profit was highest. While under the condition of late sowing, basic seedlings 24*104 per mu could result in the highest profit.5. According to the cost and yield level of wheat production in Jiangsu Province and considering the theory of price and profit demand of 100 yuan/mu, it was reasonable that wheat price in Jiangsu Province should be more than 1.01 yuan/kg at present. And the stability of wheat price was the most important guarantee for sustainable wheat production.6.Although overseas wheat had the quality superiority after China joined in WTO, it did not have significant superiority in price because of the high custom tax and transportation costs. In future, if Jiangsu Province pays more attention to science and technology input and wheat for special uses production base construction, wheat production can constantly raise its market competitive power, and the shock of overseas wheat will not be very strong.7. In order to keep the balance of wheat supply and demand in Jiangsu Province under the grain yield level at present, 25*106mu wheat was the safety line, and 20* 106 mu wheat was the safety boundary line.