Abstract: Based on Chinese industrial enterprise database from 1998 to 2007, this paper focuses on TFP and technical efficiency of agricultural and sideline food processing industry with SFA model. The results show that:(1) the agricultural and sideline food processing industry grows at an annual rate of 1%~5%, the average growth rate is 2.93%; (2) there is a big gap of technical efficiency among different areas, the technical efficiency of Inner Mongolia area is the highest, and the technical efficiency of Qinghai is the lowest; (3) the technical efficiency of the foreign-owned enterprises is the highest, and that of the state-owned enterprises is the lowest. The gap among the different ownership enterprises has become smaller and smaller, the catch-up occurs in this industry.