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Evaluating Sugarcane Productivity in China over Different Periods Using Data Envelopment Analysis and the Malmquist Index

Ye, Jie, Que, You-Xiong, Li, Yang-Rui, Xu, Li-Ping
Sugar tech 2016 v.18 no.5 pp. 478-487
costs and returns, sugar industry, sugarcane, time series analysis, China
Nonparametric methods of data envelopment analysis and the Malmquist Index (MI), both based on a time-series analysis, were applied to examine the production efficiency performance and trend of China’s sugar industry from 2004 to 2013 in the four main sugarcane-growing regions of Guangxi, Yunnan, Guangdong and Hainan provinces, which produce more than 90 % of the total sugarcane production in China. The data used in the analysis were from ‘All China Data Compilation of Costs and Returns of Main Agricultural Products (2005–2014)’ of the Price Department of the National Development and Reform Commission. Our analysis revealed that the comprehensive efficiency of sugarcane production in China was relatively low. The average scores of technical efficiency, pure technical efficiency and scale efficiency were 0.760, 0.954 and 0.792, respectively. These scores decreased yearly from 1.000, 1.000 and 1.000 in 2004 to 0.507, 0.978 and 0.518 in 2013, respectively, resulting in a negative impact on the development of the Chinese sugar industry. Additionally, the analysis based on the MI also demonstrated a decline in the trend of sugarcane productivity during 2004–2013 with the total factor productivity index score of 0.894, a slight increase in the technical generalization level with the technical efficiency change index score of 1.002 and a decrease in technological innovation with the technical change index score of 0.880. Our study clearly indicates that Chinese sugarcane productivity needs significant improvement.