Research On The International Competitiveness Of China’s Soybean Based On Efficiency

As a main agricultural crop in China, soybean is a significant resource of protein and cooking oil, which could be seen as a economic crops. China had been the largest import country of soybean in the world when government admitted to import soybean in 1996. Domestic soybean has been marginalization which mean decline in both plant area and production amount because of lower price of Roundup soybean. But in the other side, the demand from citizens and processing industry increased dramatically with the development of national economy. The demand come from edible, cooking, as well as raw material of fodder, all those made imbalance between demand and supply. As a conventional soybean planted country, China has large employees in soybean industry. So in this case, soybean problem is a part issue of agriculture. In 2015, China wants to push forward with the large-scale planting of genetically modified crops, according to its first policy document of the year. From this point, the development of soybean industry means a lot to rural economy.This article aim to enhance the competitiveness of domestic soybean and reform on supply side in soybean industry based on the situation of imbalance trade and issues existed in production by production efficiency. Some theoretical have been applied such as industrial competitiveness, classical trade theory, efficiency theory and other related economic theories. The root of lower productivity in China is the first important issues for this article. It depends on the status of soybean production, consumption, trade, and some analyze industries’ self-balance ability and ratio with major soybean trade countries among 2002-2014. Some deeper investigation on total factor productivity had been made and some comparison with United State OF American is needed to make more clearly judgment on production issues. Based on those conclusions, some tips had launched out for soybean production.The main mentality and some conclusions as followed:1. with summary on status of production, consumption, trade, including planted area, consumption structure, import structure, this article think the ability of yield have increased than beginnings even though some decline in planted area, which could be seen as the benefit of technology promotion, but it can’t catch the speed of decline in planted area. From the view of consumption structure, expressed oil hold large part, meet with the high oil yield feature in import soybean, that explain the reason why processing industry prefer import soybean. From the view of import structure, the import of soybean increased but soybean oil not which reflect higher productivity of soybean processing industry in China that they could produce oil cheaper than the cost of import soybean.2. Analyzed on input and output data in northeast soybean production area from 2002-2014, the total factor productivity had been calculated. The result shows that there some decline in TFP recently, which fit the status of domestic productivity in China; we could find more details for decline: investment of technology unfit with production capability, life cycle too short for long-term production, input redundancy lead to diseconomies of scale. Compared with northern great plain in United States, the main problems remained in China’s soybean production are: investment of technology is insufficient and application cycle short to make farmer’s initiative lower.With the conclusion above all, this article take out some advisable advices from perspectives of government, industry, management, support background: government should support soybean production by launching effective laws and support soybean farmer’s back by insurance system; industry should make technology development in first place by valuing technology research and promotion, that the seed should redefine foe higher protein or higher oil; optimize the input structure of soybean production to meet the need of maximize production; build comprehensive information system such as network and forum; basic foundation to support industry is needed for weaker status now to improve soybean’s competitiveness.