A Study on Input-Output Efficiency of Citrus in Jiangxi Province

Huazhong Agricultural University, Wuhan 430070, China

1 Introduction

The citrus industry is one of the major fruit industries in southern China. Jiangxi is a key province of planting citrus, especially navel orange, and the Gannan area in this province is one of the most important navel orange bases in China. Nanfeng County is a citrus production base with unique characteristics in China, and is famous for Nanfeng Orange. The citrus industry in Jiangxi Province, as a labor-intensive industry, has low input-output efficiency, and mainly relies on increasing investment and expanding planting scale to develop. However, the unreasonable factor input structure can not solve the problem of output improvement. Therefore, it is very important to study the input-output efficiency of citrus industry. Only by constantly improving the scientific and technological level and operating level of citrus production and optimizing the input proportion of production factors can we fundamentally improve the input-output efficiency of citrus industry, so as to achieve the steady and healthy development of citrus industry in Jiangxi Province. Therefore, it is significant to study the input-output efficiency of citrus growers in order to promote the long-term and orderly development of citrus industry in Jiangxi Province.

At present, the research on citrus by domestic and foreign scholars mainly focuses on genetic breeding, pest and disease prevention and natural disasters, and also involves the field of economy, mainly focusing on price, competitiveness analysis, logistics management, brand management and so on. The development of the citrus industry in foreign countries is ahead of the citrus industry in China, and the theoretical research and science and technology are developed. Both the business model and the economic structure are quite different from those of our country, so the research point of view is also different. At present, the domestic scholars still study and learn from foreign advanced experience to a great extent. Domestic and foreign researches involving agricultural input and output efficiency, are mostly on agriculture as a whole or some food crops, while there are few studies on the fruit industry. The research methods usually taken are parametric method and non-parametric method, and the specific models include CD production function and DEA model[1]. In terms of specific research, the conclusions obtained are different due to differences in crops, regions and time.

Kalyan Chakraborty[2]uses the stochastic frontier production function and DEA to analyze the production efficiency of the cotton plantations in four counties of West Texas. The results of the study show that in the case of the same output, the irrigated farms can reduce about 7% of the cost of other inputs, while the non-irrigated farms can reduce 12% and 13% of the cost of inputs to machinery and labor, respectively. Glenn A. Luanne[3]analyzes the technical efficiency of American farmers, divides the farmers into the experienced and inexperienced ones, and compares the technical efficiency differences. The results show that the technical efficiency of experienced farmers is high, because the farmers rationally allocate the factors of production mainly based on the needs of land. Shao Laifeng[4]uses data envelopment analysis (DEA), to analyze the agriculture-related data in the prefecture-level cities of Anhui Province during 2003-2010, and concludes that the agricultural input and output efficiency in this area has been improved, and it is necessary to moderately increase the input into the agricultural factors in Northern Anhui, especially some weak factors. Zhang Hong[5]uses the Malmquist index method to analyze the corn input-output efficiency in Jilin Province; on the one hand, the land productivity as well as labor productivity for corn is high in Jilin Province, but the level changes annually, basically on the rise; on the other hand, the capital productivity is low, showing an overall downward trend.

He Jin[6]selects Yichang citrus to analyze the price formation and the distribution of profits and their changes for two years in different links of citrus production and marketing, and points out that there is irrationality in the price formation and the distribution of profits in the citrus production and marketing, which will have a great adverse impact on the profit space of producers and consumers, and it is particularly necessary to improve the formation and operation mechanism of citrus. Tang Rongli[7]calculates and analyzes the input-output efficiency of different citrus varieties in major producing provinces (autonomous regions and municipalities) of citrus in China, and concludes that the input-output efficiency varies in different regions for different citrus varieties, and the pesticide inputs and other material costs show different degrees of redundancy.

The scholars, who analyze the input-output efficiency of citrus, generally use DEA model to analyze the national cost-benefit data of citrus, compare the input-output efficiency levels of different citrus varieties in different provinces in different years, and study the ways to rationally allocate the factor inputs in citrus production, in order to achieve the goal of improving output efficiency. In this paper, taking the major producing areas of citrus in Jiangxi Province as an example, we study and analyze the input-output efficiency of citrus in the main producing counties in Jiangxi Province in different years.

2 Analysis on the current status of citrus production in Jiangxi Province

2.1CurrentstatusofcitrusindustryinJiangxiProvince

Jiangxi Province has a lot of hills, a large population and considerable labor forces. The province’s climate is suitable, and it has a typical subtropical humid climate, with adequate rainfall, short frost-period characteristics. The acidity of red soil is also suitable for the growth of citrus and other fruits, and it is one of the key citrus producing areas in China. As of 2013, the province’s citrus area reached 329 000 ha, and the output was more than 4 000 000 t.

Table1ThecitrusoutputandareaindifferentregionsofJiangxiProvincein2013

RegionOutputtAreahaRegionOutputtAreahaJiangxi4073127329412Yingtan287272920Nanchang236184132Ganzhou1873641165802Jingdezhen32541332Ji an35330137902Pingxiang94022762Yichun800948201Jiujiang698848314Fuzhou154695686535Xinyu555984308Shangrao286527204

Data source:JiangxiStatisticalYearbook.

Table2ThedistributionofvarietiesofcitrusinJiangxiProvincein2012

PlantingvarietiesArea∥haProportion∥%Remarks∥haCitrusWenzhoutangerine8100026Premature23000，mid⁃latemature57000Ponkan210007TangerineCitrusShatangju66．700Nanfengtangerine7000023Amongthem，NanfengCounty47000Xinyutangerine66672Pomelo106673Orange11733339Citrushybrid266．700Total307000100

Data source: Ganzhou Fruit Industry Bureau.

Benefited from the excellent natural environment in Jiangxi Province, its citrus industry developed early, and it is one of the citrus dominant areas planned by the Ministry of Agriculture[8]. It has accumulated some experience in fruit industry development, and has developed some characteristic citrus varieties, mainly based on Gannan navel orange and Nanfeng tangerine.

The citrus cultivation in Jiangxi Province is mainly concentrated in the south. In 2013, only the planting area of citrus in Ganzhou City reached 165 000 ha, and the output reached 1 870 000 t, with the area and output accounting for about 50% of that in the whole province. The planting situation of the province is shown in Table 1. In terms of varieties, the distribution of citrus cultivars in Jiangxi Province in 2012 is shown in Table 2, and the three major types with the largest planting area are oranges, tangerines and citruses, in addition to pomelo and citrus hybrids.

2.2ThecitrusinputcompositionandcostchangeanalysisinJiangxiProvinceAccording to the statistics of Market and Foreign Affairs Office of Jiangxi Provincial Department of Agriculture, the citrus production input factors are mainly divided into three parts: material cost, labor cost and land cost. The material cost includes the direct production cost and the indirect production cost.

Data source: Market and Foreign Affairs Department of Jiangxi Provincial Department of Agriculture.

Fig.1ThecostcompositionofcitrusinJiangxiProvincein2013(per0.067ha)

The citrus variety was newly added to the cost-benefit statistics in Jiangxi Province from 2010, the data in 2009 and before were missing, and there are few statistical years, so we can not analyze the changes in the cost and income of citrus. This article only makes a brief analysis on the citrus input cost changes in 6 counties of Jiangxi Province during 2012-2013.

In absolute terms, the average total production cost of citrus per hectare in Jiangxi Province increased from 1 954 yuan to 2 116.52 yuan, an increase of 8.3%. Among them, the material costs increased from 1 227.10 yuan to 1 273.14 yuan, an increase of 3.7%; the labor costs rose from 709.9 yuan to 826.37 yuan, an increase of up to 16.4%; the land costs remained basically unchanged. This shows that the change in labor costs has pushed up the growth of the total cost of production. The main reason is that the citrus production in our country is a labor-intensive industry. In the material costs, the chemical fertilizer costs fluctuate greatly, from 380.7 yuan to 411 yuan, an increase of 7.9%, mainly due to the increase of price of agricultural materials. Fig. 1 shows that the material costs account for about 50% of the total costs of citrus production, while the direct costs account for about 90% of material costs. Taking 2013 as an example, the cost of chemical fertilizer in citrus production was 411 yuan in Jiangxi Province, accounting for about 20% of the total costs of citrus; the cost of manure in citrus production was 130.5 yuan in Jiangxi Province, accounting for 6% of the total costs of citrus; the cost of pesticides is 276 yuan, accounting for 17% of the total costs of citrus.

Based on the above analysis, we can divide the input index into material costs, land costs and labor costs. In the study of material costs, we mainly consider the direct costs, especially the chemical fertilizer fee, manure fee and pesticide fee with a large proportion. This article focuses on the material costs in the citrus production costs per hectare.

3 Analysis on the input-output efficiency of citrus industry in Jiangxi Province

This paper adopts the DEA method based on Malmquist index to measure the citrus production efficiency in Jiangxi Province. DEA (Data Envelopment Analysis) is a nonparametric method in operations research and economics for the estimation of production frontiers. It is used to empirically measure productive efficiency of decision making units. The advantage of this approach is that it has no need to seek specific forms of production frontier, and the data during the study will be free from too many restrictions, in line with the actual production situation, having the practical significance[9].

3.1InputandoutputindexselectionanddatasourcesThis paper selects the production cost and benefit data of six counties in Jiangxi Province during 2010-2013, and the panel data are used. There are a total of 24 samples, to meet the requirements of the DEA sample volume greater than the total number of output variables.

The six citrus planting counties in Jiangxi Province during 2010-2013 are selected as the object of study. One output index was selected for measurement and calculation, namely the main product output value of citrus per 0.067 ha. Three input indexes are selected, and they are the average labor for citrus production per 0.067 ha, the average material costs (yuan) per 0.067 ha, and the average land costs (yuan) per 0.067 ha[10]. Data come from Market and Foreign Affairs Department of Jiangxi Provincial Department of Agriculture.

3.2Analysisonthemeasurementresultsofcitrusinput-outputefficiencyinJiangxiProvince

3.2.1The change and decomposition of total factor productivity for citrus production in Jiangxi Province. As shown in Table 3, the annual average growth rate of TFP in Jiangxi Province was only 2.2% in 2010-2013, the TFP showed negative growth in 2010-2011, and the growth rate of TFP decreased in 2011-2013. The growth rate was high in 2011-2012, reaching 13.9%, and the growth rate was 11.4% in 2012-2013.

From the change and decomposition of Malmquist productivity, the total factor productivity change can be decomposed into technological progress change (TECH-ch) and technical efficiency change (EFF-ch). The growth of citrus industry productivity in Jiangxi Province is mainly due to technological progress. Table 3 shows that the average annual growth rate of technological progress is 2.5%. The growth of technical efficiency is negative, with an average annual decrease of 0.003%, and it is mainly determined by the changes in pure technical efficiency and scale efficiency. And the slow increase in pure technical efficiency leads to low technical efficiency. The technological progress can promote the intensive margin of citrus production and management to continue to expand, thus contributing to the growth of input and output efficiency. The total factor productivity growth of citrus is largely driven by technological progress, and the technical efficiency growth is constrained by low pure technical efficiency.

Table3TFPchangesandcompositionin2010-2013

YearMalmquistproductivitychange(TFP⁃ch)Technologicalprogresschange(TECH⁃ch)Technicalefficiencychange(EFF⁃ch)Puretechnicalefficiencychange(PE⁃ch)Scaleefficiencychange(SE⁃ch)2010-20110．8420．8331．0100．9981．0132011-20121．1391．1880．9581．0050．9532012-20131．1141．0891．0230．9761．048Geometricmean1．0221．0250．9970．9931．004

Data source: The data are organized according to the DEAP software analysis results.

3.2.2The citrus productivity growth, technological progress and efficiency change in different counties of Jiangxi Province. As shown in Table 4, in the sample year, with the exception of Taihe County, the annual average growth rate of input-output efficiency of major citrus producing counties shows an upward trend, indicating that the overall citrus production in Jiangxi Province shows good momentum of development. From the productivity change and composition of the main citrus producing counties in Jiangxi Province, it is found that there are regional differences in productivity growth, indicating that there are differences in the business philosophy of farmers in different regions, having some impact on citrus production, but on the whole, it is balanced. Among them, the county with the largest contribution rate of TFP is Nanfeng County, reaching 8.4%, indicating that the production frontier led by Nanfeng County has driven the growth of TFP; the growth rate is negative in Taihe County, indicating that the productivity of Taihe County has lowered the overall level. The citrus productivity growth in Jiangxi Province is mainly driven by technological progress. The growth of technical efficiency is promoted by the growth of scale efficiency, but the pure technical efficiency is low, suggesting that there will be still much room for technological progress in citrus industry in Jiangxi Province in the future.

Table4TFPchangesandcompositionindifferentareas

AreaMalmquistproductivitychange(TFP⁃ch)Technologicalprogresschange(TECH⁃ch)Technicalefficiencychange(EFF⁃ch)Puretechnicalefficiencychange(PE⁃ch)Scaleefficiencychange(SE⁃ch)Huichang1．0031．0240．9801．0000．980Nancheng1．0460．9901．0570．9951．062Nanfeng1．0841．0621．0211．0001．021Suichuan1．0011．0011．0001．0001．000Taihe0．9591．0330．9290．9630．962Xinfeng1．0451．0451．0001．0001．000Geometricmean1．0221．0250．9970．9931．004

Data source: The data are organized according to the DEAP software analysis results.

4 Optimization of the measurement of citrus input-output efficiency in Jiangxi Province

4.1DatasourcesandindexselectionThis paper tries to horizontally compare and measure the input-output efficiency of citrus in different counties of Jiangxi Province from the static micro-level. On the basis of this, the paper explores the reasons for the decline of efficiency in different counties and the optimal plan for the effective production. The DEA method is still used for measurement and the VRS model is used to measure the input efficiency in the non-effective areas and its efficiency reference areas, and thus find the best way to improve efficiency.

The main citrus producing counties in Jiangxi Province are selected as the decision-making units, and the data come from Market and Foreign Affairs Department of Jiangxi Provincial Department of Agriculture, as shown in Table 5. Since it is a static analysis method, we simply need to select a year of data, and take the citrus-growing areas of Jiangxi Province in 2013 as research subjects, including Huichang, Nancheng, Nanfeng, Suichuan, Taihe and Xinfeng counties. The related data of 2013 are the latest available data, so the data can be easily collected, and can well reflect the current status of citrus production in Jiangxi Province. One output index is selected, namely the main product output of citrus per 0.067 ha (kg). The input indexes include the average labor for citrus production per 0.067 ha, the average pesticide costs (yuan) per 0.067 ha, the average chemical fertilizer costs (yuan) per 0.067 ha, the average costs (yuan) of other materials per 0.067 ha, and the average indirect costs (yuan) per 0.067 ha.

Table5ThecitrusinputandoutputindexdataofvariousmonitoringcountiesinJiangxiProvincein2013

AreaThemainproductoutput∥kgLaborquantityChemicalfertilizercosts∥yuanPesticidecosts∥yuanCostsofothermaterials∥yuanIndirectcosts∥yuanHuichang2560．017．60450．0220．0794．0172．0Nancheng1805．423．60418．1473．995．4193．1Nanfeng3500．028．60485．0435．01010．0280．0Suichuan1067．65．15180．822．430．370．0Taihe1420．010．83270．0245．0217．0211．0Xinfeng2062．63．79662．1259．8206．8237．2

Data source: Market and Foreign Affairs Department of Jiangxi Provincial Department of Agriculture.

4.2Measurementresultsandanalysis

4.2.1Analysis of citrus input-output efficiency in different counties of Jiangxi Province. This paper attempts to conduct the input-oriented DEA empirical analysis on the cross-sectional data of six citrus planting counties in Jiangxi Province in 2013, and the results are shown in Table 6. The DEA relatively efficient units include Huichang, Nanfeng, Suichuan and Xinfeng counties, and both the technical efficiency and scale efficiency are 1. It can be seen that the allocation of resources in these areas is in the best state, and the level of management level and production technology is high. The frontier of citrus input-output efficiency in Jiangxi Province is composed of these areas.

Among them, Nancheng County is non-DEA effective, and the pure technical efficiency is 1 in Nancheng County. It is observed that if the scale efficiency is less than 1, it indicates that in terms of the technical efficiency, the input does not need to decrease and the output also does not need to increase. The comprehensive efficiency is less than 1, and there is a large distance from the optimal efficiency, because the scale does not match the input and output. The pure technical efficiency is exactly 1 in Nancheng, indicating that the use efficiency of resources put into the citrus production is high in this county. It is not up to comprehensive efficiency, and the current scale is not effective, so how to better play its scale is the center of reform. Due to the diminishing returns to scale, the citrus production in Nancheng County needs to be reduced in size.

Table6Input-outputefficiencyanalysisofcitrusinmonitoringcountiesin2013

AreaTechnicalefficiency(TE)Puretechnicalefficiency(PTE)Scaleefficiency(SE)Returnstoscale(RTS)SerialnumberReferencebaseCountWeightHuichang1．0001．0001．000Constant1111．000Nancheng0．7011．0000，701Decreasing2201．000Nanfeng1．0001．0001．000Constant3311．000Suichuan1．0001．0001．000Constant4411．000Taihe0．7260．7430．976Decreasing54；63；100．805；0．0250．079；0．091Xinfeng1．0001．0001．000Constant6611．000Geometricmean0．9040．9570．946

Data source: The data are organized according to the DEAP software analysis results.

Another non-DEA effective unit is Taihe County. Both the pure technical efficiency and scale efficiency are less than 1, so the technical efficiency is also less than 1, indicating that the used resources have not been properly allocated and the current scale is not suitable. Therefore, in the aspect of productivity improvement, the optimal allocation of resources and moderation of scale all need attention.

In 2013, the average production efficiency of six citrus producing counties in Jiangxi Province was 0.904, suggesting that the efficiency of citrus input factor was in an ideal state, and the actual output was not far from the production frontier, but it still needed to continue to improve. Except Taihe County, the remaining five counties have pure technical efficiency of 1, indicating that the citrus production level is high in the five counties, the citrus production methods are scientific, and Taihe County needs to introduce advanced production technology to improve the local citrus production and comprehensive management skills and explore the technology potential. The scale efficiency of Huichang, Nanfeng, Suichuan, Xinfeng counties is 1, which is in the phase of constant returns to scale, indicating that the current scale of citrus is reasonable and can remain unchanged. Nancheng County and Taihe County have the non-effective scale, and the scale of operation is not optimal, indicating that the local citrus production is in excess of the scale, and there is a need to adjust.

4.2.2Analysis of citrus input slack. By analyzing the inefficiency state of input factors, it is found that the main problem in Taihe County is the excessive input of pesticide and other material expenses. As shown in Table 7, there was a problem of over-input of 82.246 yuan pesticide in Taihe County in 2013, while there was subtle redundancy in other material costs. It shows that the citrus cultivation industry in Taihe County needs to reduce the input of material costs such as pesticide and fuel power fee and manure fee, optimize the cost input structure, learn planting experience from other five counties, and adjust the cost input ratio.

Table7Summaryofinputslacksincitruscultivationmonitoringcounties

AreaLaborChemicalfertilizercost∥yuanPesticidecost∥yuanOthermaterialcosts∥yuanIndirectcosts∥yuanHuichang00000Nancheng00000Nanfeng00000Suichuan00000Taihe0082．24632．0750Xinfeng00000Geometricmean0013．7085．3460

Data source: The data are organized according to the DEAP software analysis results.

5 Conclusions and recommendations

5.1ConclusionsThis paper analyzes the citrus input-output efficiency by using the DEA-Malmquist productivity index methods based on the input cost and income data of six counties in Jiangxi Province from 2010 to 2013. Based on the empirical analysis and the local conditions and problems, the following conclusions are drawn:

5.1.1The citrus TFP continues to grow in Jiangxi Province and the frontier technological progress change is the main driving force. Using the non-parametric Malmquist productivity index method based on output, this paper measures the contribution of the citrus TFP change to the citrus industry growth in Jiangxi Province during the sample year at 2.2%, the change of scale efficiency leads to the increase of technical efficiency, and the low pure technical efficiency lowers the level of technical efficiency. Different regions have different productivity and growth trend, and the positive total factor productivity growth appeared in most of the main citrus producing counties, but the growth rate is not high, and there is not only technological progress, but also technical efficiency loss.

5.1.2The allocation of citrus resources in major counties is in a good state, with a high level of production technology, and there is redundancy of input factor in the citrus production for some counties. According to the difference in the citrus input-output efficiency between different regions, we propose the improvement method based on the actual situation. The input and output factors in Huichang, Nanfeng, Suichuan, Xinfeng counties reach the optimal combination ratio, and both the pure technical efficiency and scale efficiency are high in these four counties. It is recommended to properly reduce the input ratio, and make the output unchanged. The pure technical efficiency is very low and the scale efficiency is high in Taihe County, with excessive inputs. It is noteworthy that it is necessary to appropriately reduce the pesticide costs and other material expenses. The scale efficiency is very low in Nancheng County, and there is a need to adjust the scale and play the leading role of scale efficiency while enhancing the pure technical efficiency.

5.2RecommendationsThrough the study, we can find that the technological progress is the most important factor to increase total factor productivity. In this paper, we analyze the reasons for the low input-output efficiency of citrus production in Jiangxi Province, and optimize the production input factors. Finally, some effective and feasible policy recommendations are provided to improve the citrus production capacity in Jiangxi Province and enhance the input-output efficiency of citrus industry.

5.2.1Integrating the citrus production resources to promote citrus industrialization. It is necessity to integrate the superior citrus production resources in various regions of Jiangxi Province, and accelerate the realization of citrus production intensification; encourage farmers to give full play to the scale effect of citrus production, and focus on building a highly intensive, modern and technological citrus industry in the advantageous producing areas; strengthen the cooperation with the related research institutes and universities, and increase investment in research and development of citrus science and technology[11].

5.2.2Optimizing the input structure to improve production efficiency. It is necessary to strengthen the management of resources input in major citrus producing areas in Jiangxi Province, and optimize the input structure, in order to achieve the optimal allocation of resources and increase production efficiency. According to the conclusion of the research, there is a need to appropriately reduce or increase the relevant input costs, and the labor resources should be rationally distributed according to the local conditions.

5.2.3Improving the pest, disease and disaster monitoring, prevention and control system, and rationally controlling the pesticide consumption. It is necessary to strengthen the monitoring of pests and diseases, increase the control of pests and diseases related to citrus and improve the prevention and control efficiency of pests and diseases. At the same time, we also need to strengthen citrus farmers’ ability to respond to natural disasters, and improve the monitoring and organizing ability of the relevant departments on the natural hazards.

5.2.4Strengthening the research, development and promotion of citrus planting techniques and improving the planting level of farmers. It is necessary to increase research and development of new varieties of citrus, improve the existing citrus cultivation techniques, improve plant resistance to pests and diseases, and reduce the use of pesticides and fertilizers[11]. There is a need to raise the planting level of farmers, and improve the management and operation level of citrus farmers, so as to promote the steady development of citrus industry in Jiangxi Province.

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