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Do Farmer Professional Cooperatives Improve Technical Efficiency and Income? Evidence from Small Vegetable Farms in China

  • Ying Dong (a1), Yueying Mu (a2) and David Abler (a3)

Abstract

China’s small-scale agricultural producers face many challenges to increasing productivity and efficiency. In recent years, the Chinese government has provided support for farmer professional cooperatives (FPCs) to connect small farms with upstream and downstream processes in the food supply chain. This study combines propensity score matching and sample selection-corrected stochastic production frontier analysis to estimate the impacts of FPC participation by greenhouse vegetable producers on technical efficiency and income. Results indicate that FPCs help participants improve returns to scale and marginal returns to land and labor, increase technical efficiency, and obtain ¥4,460 (18%) greater income per greenhouse than nonparticipants.

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Copyright

This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

Corresponding author

*Corresponding author. Email: yueyingmu@cau.edu.cn
**Corresponding author. Email: dave@bythenumbers.info

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Do Farmer Professional Cooperatives Improve Technical Efficiency and Income? Evidence from Small Vegetable Farms in China

  • Ying Dong (a1), Yueying Mu (a2) and David Abler (a3)

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