Costs And Profits Of Apple Production In China

Apple is of great importance in the fruit Industry in China. In 2014, China had an apple planting area of 2.312 million hectares, only less than that of citrus, and an apple yield of 27.5283 million tons, which ranked the first among the different fruits, so that apple industry became the mainstay industries in its apple production regions. In the recent years, there have occurred increases of material and labor costs with the increasing price level and ongoing urbanization in China and thus apple industry has been facing greater and greater difficulties in the country. So to investigating costs and profits in apple production, processing and consumption will be helpful for decision makers to understand development trends of apple industry and research workers to clearly and definitely follow sci-tech developmental trends, and plays an active guiding role for a sound development of apple industry In China.Referring to relevant research achievements and statistical yearbooks on agriculture, adopting standard analytical, descriptive and statistical methods, and depending on data of apple industry of China in the twenty three years between 1991 and 2013, the study fully and in-depth analyzed cost changes of apple industry in China and that revealed causes for the changes of apple industry in China by comparing costs of the industry in different regions and at different development stages. In China, the return of apple production is high but subject to great fluctuations and affected by sale prices and production costs of apple and natural disasters. The Paper presenting the study is composed of five chapters as follows: Chapter 1 IntroductionThe chapter deals with the background, objectives and significance of the study, summarizes research advances at home and abroad, clearly and definitely give out the thinking approaches and methods of the study. Chapter 2 Developmental Evolution of Apple production in ChinaThe Chapter expatiates the importance of apple production in China, analyzes apple industry in the past 20 years in terms of planting area, yield, cultivar, quality and processing, and points out trends for relocating apple industry to west China and expanding the industry towards north China. Chapter 3 Cost of apple production In ChinaThe Chapter deals with cost evolution trends of apple production in China in the past twenty years in details and probes into causes for rapid cost increases of apple production in terms of different necessary productive elements such as material, service, labor and land. Chapter 4 Returns of apple production In ChinaThe chapter examines the profit totals of apple industry in China and compared cost-profit ratios in different production regions, pointing out that the profits of apple industry is subject to such factors detrimental to its sound development as great fluctuations, instabilities, poor disaster fighting capacities. Chapter 5 Conclusion and proposalThe Chapter reveals that apple industry is subject to greater fluctuations in planting area and cost-profit ratio, great increases in production costs and remarkable changes in cost compositions. The cost increases and market fluctuations, and natural disasters have become crucial elements that exert influences on sound development of apple industry in China and as a result efforts should be made in industry policy, technological development, and market channel expansion and market stabilization in order to safeguard sound development of apple industry In China.