Abstract: To analyze the changing trend of local cost structure and benefits of peach production, consecutive investigations about costs and benefits of peach production in main producing areas were conducted in Shandong Province from 2011 to 2014. The results showed that labor cost, which accounted for 53% of the total cost, exceeded material cost in peach production. Labor cost and land rent were rising fast and had become the key factors restricting the increase of farmers’income. The yield and price of peach rose steadily, and both the total benefit and net income increased gradually. Finally, the technical measures for saving cost and increasing effect were proposed, such as promoting wide-row close planting model, improving the level of organization in peach production and increasing marketing channels. The study provided important reference for the healthy and sustainable development of peach industry in Shandong Province.