An economic analysis of sweet sorghum cultivation for ethanol production in North China

AbstractSweet sorghum [Sorghum bicolor (L.) Moench] is a promising non‐food energy crop. The objective of this study was to determine the economic costs and input sensitivity of sweet sorghum compared to cotton, maize, and sunflower, at two saline‐alkali sites in Shandong (Wudi County) and Inner Mongolia (Wuyuan County) provinces of China. The data were collected quantitatively based on a face‐to‐face interview with 100 and 67 sweet sorghum growers at the two sites, respectively. The sweet sorghum grown at Wudi had lower external input (5469 CNY ha−1), higher net return (7305 CNY ha−1) and benefit‐cost ratio (2.36) than its reference crop, cotton (18 454 CNY ha−1; 3615 CNY ha−1; 1.24). At Wuyuan, the sweet sorghum showed contrasting economic performance (19 541 CNY ha−1; −3438 CNY ha−1; 0.91), which was largely because of the higher labor costs compared to sunflower (10 896 CNY ha−1; 15 133 CNY ha−1; 2.49); and maize (9108 CNY ha−1; 14 760 CNY ha−1; 2.76). The productivity of sweet sorghum per unit of external input costs (kg CNY−1) was 13.12 for Wudi and only 3.26 for Wuyuan. Based on the Cobb‐Douglas production function, the external inputs of diesel and seed had a significantly positive impact on the profitability of sweet sorghum at Wudi but not at Wuyuan. However, the costs of irrigation and film cover were significantly negative. The energy crop, sweet sorghum, showed a better return to scale on investment than cotton and sunflower.