The Analysis of Taiwan’s Rice Production Cost Structure

• Main Authors: Yi-Ru Ou, 歐怡汝
• Other Authors: Yu-Hui Chen
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/58344194954074397486

碩士 === 國立臺灣大學 === 農業經濟學研究所 === 101 === Rice is the most important staple food of Taiwanese diet. Therefore there are the most widely planted area and the largest number of farmers in Taiwan’s rice industry. To ensure national food supply, maintain social stability, and secure farmer’s income, many Taiwan''s agricultural policies focus on the rice industry. Small-scale of farm operations prevail in Taiwan rice industry, which results in a high production cost, and less competitive in the international market. Moreover, the pressure of trade liberalization even focus the industry confronts to greater challenges. Since production cost is one of the important factors influencing the competitiveness of Taiwan’s rice industry, studying the production cost of the industry is indispensable. The purpose of this research is to analyze Taiwan’s rice production costs and its structure. The elasticity of substitution between rice production factors are also calculated. Our findings show that the production costs of both crops have a rising trend. The production cost of the second rice crop is higher than that of the first crop, showing that first crop has a better production advantage over the second crop. In terms of the scale of operation, the results show that the larger the size of farm the lower the production cost. The estimated elasticities of substitution between factors indicate that seed and pesticide are substitutes; seed and fertilizer have a complementary relationship. The imply that when the seed price increases, rice farmers increase the demand of pesticide app1ication and decrease the demand of fertilizer app1ication. The elasticities of substitution between pesticide and fertilizer, and pesticide and wage are substitutes. The implications are that when the pesticide price increases, rice farmers increase the demand of fertilizer app1ication and increase the demand of labor. The elasticity of substitution suggests fertilizer and wage are substitutes, showing that when the fertilizer price increases, rice farmers increase the demand of labor. When wages raise that rice farmers reducing labor and increase the quantity of fertilizer usage.