The impact of swine diseases on total factor productivity of pig farms of different scales in China

BACKGROUND: Animal diseases threaten pig production by reducing growth efficiency and farm profitability. Total factor productivity (TFP), reflecting technological progress, organizational improvement, and resource allocation, provides a comprehensive measure of farm performance. Yet, the impact of diseases on TFP in pig farming remains unclear. This study examines the effects of animal diseases on TFP across different farm sizes in China using provincial panel data from 2007 to 2020. RESULTS: A 1% increase in disease cases raises TFP by 0.018 units in large-scale farms, reduces it by 0.041 units in small-scale farms, and shows no significant effect for medium-scale farms. Mechanism analysis indicates that diseases mainly affect TFP through technical change, while heterogeneity analysis shows stronger effects in major pig-producing regions. CONCLUSIONS: Diseases, though adverse shocks, have spurred technological progress and TFP in large-scale farms but significantly constrained TFP in small-scale farms. These findings underscore the need to promote technological innovation, account for scale heterogeneity in policy design, and strengthen the resilience of small- and medium-scale farms to ensure sustainable development of the swine industry.