Determinants of Pear Farmers’ Profits in China

Pear output and acreage in China has been increasing steadily since
market deregulations were introduced in 1980s. However, like other
horticulture producers, typical pear farmer in China remain smallscale
operators and price-takers in both input and output markets.
Moreover, farmers can be efficient in production but not in profit as
the latter depends on organizational and marketing skills. We
investigate profitability of China’s pear farmers in this study. We
conducted annual survey on 184 Chinese pear farmers from eight
leading pear-producing provinces. Our primary data contains details
on pear price, production cost, pear variety and socio-economic
variables. We summarize useful observations on these variables in
statistical tables. Our regression results capture the relative
importance of these variables in terms of their contribution to profits.
Specifically, we find that choosing the “correct” pear variety and
selling channel is more important than many other perceived
determinants of profit.

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