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Effects of Rising Feed and Labor Costs on China’s Chicken Price

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Listed:
  • Gale, Fred
  • Arnade, Carlos

Abstract

China’s poultry production and consumption are growing rapidly, but rising input costs could slow its development. Increases in corn and soybean prices and wages are partially transmitted to rising retail chicken prices in China. Corn and soybean meal appear to be substitutes, and corn prices have a stronger impact on chicken prices than does the price of soybean meal. Modest technical change impacts partly offset the effect of rising input prices. Rising grain prices and wages, reinforced by Chinese currency appreciation, are eroding the international competitiveness of the Chinese poultry industry

Suggested Citation

  • Gale, Fred & Arnade, Carlos, 2015. "Effects of Rising Feed and Labor Costs on China’s Chicken Price," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-14, July.
    • Handle: RePEc:ags:ifaamr:207007
    DOI: 10.22004/ag.econ.207007
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    File URL: https://ageconsearch.umn.edu/record/207007/files/2014008110.pdf
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    References listed on IDEAS

    as
    1. Hansen, James & Gale, Fred, 2014. "China in the Next Decade: Rising Meat Demand and Growing Imports of Feed," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 03, pages 1-1, April.
    2. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
    3. Gale, Fred, 2013. "Growth and Evolution in China's Agricultural Support Policies," Economic Research Report 155385, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Wang, Ping & Kinnucan, Henry W. & Duffy, Patricia A., 2017. "Effects of China's Rising Labor Costs on the World Cotton Market," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258431, Agricultural and Applied Economics Association.
    2. Retsef Levi & Somya Singhvi & Yanchong Zheng, 2020. "Economically Motivated Adulteration in Farming Supply Chains," Management Science, INFORMS, vol. 66(1), pages 209-226, January.

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