INVESTIGATION AND COUNTERMEASURES ON THE PROBLEM OF INCREASED LITCHI YIELD BUT NOT INCREASED INCOME: TAKING CHINA MAOMING LITCHI AS AN EXAMPLE

Authors

  • XiaoPing Tan (Corresponding Author) Guangdong University of Finance & Economics, Guangzhou 510320, Guangdong, China.
  • ZhongYi Zhu Guangdong University of Finance & Economics, Guangzhou 510320, Guangdong, China.
  • WeiCheng Chen Guangdong University of Finance & Economics, Guangzhou 510320, Guangdong, China.
  • RuiQi He Guangdong University of Finance & Economics, Guangzhou 510320, Guangdong, China.
  • GaoXue Wei Guangdong University of Finance & Economics, Guangzhou 510320, Guangdong, China.

Keywords:

Increased production without income growth, Maoming litchis, Supply-side analysis, Demand-side analysis

Abstract

The 2025 litchi harvest in Maoming, Guangdong achieved record yields, however, increased production didn’t translate into proportional profit growth. This study investigates the phenomenon of “increased production without corresponding income growth” from both supply-side and demand-side perspectives. From the supply side, the findings indicate that factors such as concentrated market entry, oversupply, labor shortages, rising production costs, limited regional brand premium capacity, and insufficient product quality and technological innovation have constrained income growth. From the demand side, Consumer survey results reveal a general preference for low-priced litchis. However, a considerable proportion of consumers are willing to pay premium prices for higher quality, strong brand, and specific consumption scenarios. Most consumers accept a regional brand premiums of up to 10% for Maoming litchis, while demonstrating strong repurchase intention. Notably, 44.3% of respondents reported never having purchased Maoming litchis, highlighting the coexistence of high repurchase potential and significant untapped market segments. A comprehensive supply–demand analysis identifies several core contradictions: rigid supply structures versus weak demand upgrading; high channel dependency versus diversified consumption patterns; misalignment between weak brand awareness and rising quality expectations; and technological limitations combined with evolving consumption experiences that create “last-mile” barriers.Based on these findings, this study proposes targeted policy recommendations to address these structural issues and promote sustainable development in the litchi industry.

References

[1] Benton TG, Bailey R. The paradox of productivity: agricultural productivity promotes food system inefficiency. Global Sustainability, 2019, 2: e6.

[2] Yu J. The price of torreya keeps falling: How to break the "spell" of increased output without increased income in torreya-producing towns. Ningbo Daily, 2024: 004.

[3] Liu Z. Garlic output and planting area increase significantly: Garlic farmers experience increased output without increased income; "garlic you ruthless" becomes "garlic you fool" this year. China Economic Weekly, 2023(10): 72-73.

[4] Huang G. Increased but unprofitable agricultural output and the government's problem-solving model: A case study of the agricultural industry in Area A of Hunan Province. Academic Research, 2012(5): 99-104.

[5] Liu C. Soybean planting sees increased output without increased income; urgent need to strengthen industrial chain regulation. Grain and Oil Market News, 2023: B02.

[6] Zhang Z, Shi X, Ling T. Empirical test and real-world evidence of increased output but not income from fertilizer and pesticide application. Journal of Chuzhou University, 2022(2): 55-62.

[7] Dsouza A, Mishra AK, Webster S. Vertical coordination and post-harvest losses: Implications on food loss. Applied Economic Perspectives and Policy, 2023, 45(1): 460-486.

[8] Sexton RJ. Market power, misconceptions, and modern agricultural markets. American Journal of Agricultural Economics, 2013, 95: 209-219.

[9] Yang G, Yang L. Does the integration of fiscal funds for agriculture solve the problem of increased output without increased income? A difference-in-differences test based on data from 51 counties in Province A of central China. China Economic Issues, 2020(6): 70-89.

[10] Cui G, Yao H. Price insurance resolves the issue of "increased output without increased income" for cabbage. China Banking and Insurance News, 2024: 007.

[11] Zhang Z, Shi X, Ling T. Empirical test and real-world evidence of increased output but not income from fertilizer and pesticide application. Journal of Chuzhou University, 2022(2): 55-62.

Downloads

Published

2026-04-14

How to Cite

XiaoPing Tan, ZhongYi Zhu, WeiCheng Chen, RuiQi He, GaoXue Wei. Investigation And Countermeasures On The Problem Of Increased Litchi Yield But Not Increased Income: Taking China Maoming Litchi As An Example. World Journal of Economics and Business Research. 2026, 4(2): 44-60. DOI: https://doi.org/10.61784/wjebr3098.