MySheen

Introduction to the Circulation Mode and current situation of four Major Agricultural products in China

Published: 2024-11-21 Author: mysheen
Last Updated: 2024/11/21, Introduction to the Circulation Mode and current situation of four Major Agricultural products in China

At present, the circulation market of agricultural products in China has formed a pattern with farmers, farmers' cooperatives, agricultural products processing enterprises and dealers as the main circulation subjects and farmers' markets and wholesale markets as carriers. After years of market-oriented reform, it is developed by the mode of unified purchase and marketing under the regulation of the plan. Let's analyze several modes of coexistence in our country at the present stage.

Mode 1:

Farmers + (acquisition hawkers) + wholesalers + retail terminals can be divided into two forms:

(1) there are hawkers. In the vast rural areas of China, it is normal for farmers to sell agricultural products directly to vendors after harvest, and these vendors directly resell the purchased agricultural products to the next level of wholesalers, who then resell them to retailers, ending the circulation of agricultural products. The characteristic of this model is that because of the single channel, it is easy to cause farmers' extreme dependence on hawkers.

(2) there are no vendors. The premise of this model is that a certain agricultural product is planted in a large area. Because of this scale planting, economies of scale can be formed, and farmers can enter the market at a lower cost to trade directly with wholesalers. The characteristic of this model is that the transaction between farmers and wholesalers is one-off, and both sides only seek to maximize the benefits of the current transaction.

Mode 2:

The key to the circulation mode of peasant household + leading enterprise + (wholesaler) + retail terminal lies in the relationship between peasant household and leading enterprise. According to the contract signed by Shuangfa, farmers produce a given quantity and variety of agricultural products in accordance with the corresponding product quality standards in the contract, while leading enterprises are also in charge of purchasing, processing and selling the purchased agricultural products to carry out deep processing, increase the added value of agricultural products, and then resell them to lower-level wholesalers and retailers to complete circulation, which is called "order agriculture". The advantages of this model are as follows: first of all, farmers and leading enterprises are bound through contracts, which can make farmers and leading enterprises bear the market pressure together and protect the interests of farmers. On the other hand, compared with the first circulation mode, this model can better optimize the circulation of agricultural products, not only maintain the independence and autonomy of agricultural products, but also save the cost of information search. At the same time, this model also has some shortcomings, such as the fragile contractual relationship between farmers and enterprises.

Mode 3:

The model of peasant household + peasant cooperative + leading enterprise + (wholesaler) + retail terminal adds peasant cooperative between peasant household and leading enterprise. In fact, it is to perfect and correct the second mode. Compared with mode 2, this model is no longer directly related to farmers and leading enterprises, and farmers' cooperatives have become the link and bridge between them. Cooperatives gather scattered farmers, organize production according to the requirements of orders, purchase farmers' products uniformly, and then organize sales uniformly. The advantages of this model: first of all, farmers' cooperatives instead of scattered farmers to trade with leading enterprises can save time for discussion, and a relatively stable relationship can make the circulation channels more smooth. Secondly, cooperatives must have stronger bargaining power than scattered farmers, so they can strive for more interests for farmers. The advantages of this model and the benefits to farmers are beyond doubt, but farmers' cooperatives in our country are still in the initial stage, the operation is not familiar with, lack of standardization, so it is necessary to strengthen the cultivation of excellent farmers' cooperatives.

Mode 4:

The circulation mode of farmers (agricultural cooperatives) + retail terminals (supermarkets) is called "agricultural super docking", which is the circulation mode of agricultural products that our country has mainly encouraged in recent years. The characteristics of this model: the retail terminals represented by supermarkets and farmers' cooperatives on behalf of farmers do not have any other intermediate links, and the two connect agricultural products in the form of direct supply and direct acquisition. The supermarket participates in the production, processing and circulation of agricultural products by virtue of its own advantages in capital, management and technology, and provides one-stop services for agriculture with its information, technology, logistics and other aspects. so that farmers and the market can be effectively connected without circulation organizations, so as to achieve the purpose of reducing circulation links and reducing circulation costs. The advantages of this model are mainly reflected in: first of all, it shortens the length of the supply chain to the maximum extent, reduces the consumption and cost of the circulation process, and the supermarket monitors the circulation process of agricultural products, fully ensuring the quality of products. Second, from the perspective of farmers, it greatly reduces the uncertainty of the market, affects the planting of farmers, and avoids the blind production of farmers. Third, from the perspective of the supermarket, the omitted intermediate circulation link saves the circulation cost, which reduces the price of the product and improves the product competitiveness of the retail industry. Fourth, from the consumer's point of view, the reduction of product prices is the greatest welfare of consumers.

Although the circulation channels and methods of agricultural products are constantly developing and improving, the following points still affect the circulation efficiency of agricultural products that can not be ignored:

First, ultra-small-scale farmers and self-employed farmers are still the most important subjects in the circulation of agricultural products in China.

Compared with developed countries, the main bodies of production and circulation of agricultural products in China are mainly farmers and self-employed farmers engaged in wholesale and retail of agricultural products. On the other hand, the agricultural enterprises are very few and the operation scale is small. Among them, the average household area of cultivated land is 7.94 mu. The average household sells 1047.34 kilograms of grain, 97.62 kilograms of pork and 55.48 kilograms of eggs, which is a relatively small type of production by farmers in the world. This situation is difficult to change fundamentally because of China's geographical environment and demographic factors, and the production and management of agricultural products based on families is not unique to our country, but a common phenomenon in many countries. for example, the operation scale of Japanese farmers is also very small. However, small-scale peasant household production is bound to have a great impact on the circulation efficiency.

Second, there are a large number of wholesale markets for agricultural products, but the average transaction scale is small, the grade is not high, and the function is not perfect.

Since 1991, China has begun to treat the establishment of an agricultural product market system centered on wholesale markets as an important part of circulation reform. A central and regional wholesale market network of agricultural products has been established in the concentrated producing areas, distribution centers and large and medium-sized cities of agricultural products. By 2007, the total volume of transactions in China's agricultural products wholesale market of more than 100 million yuan was about 930 billion yuan, accounting for 37% of the total agricultural output. The proportion of agricultural products traded through agricultural wholesale markets across the country is as high as 70%, and this proportion continues to rise.

Third, the technical content of the channel is generally low, which leads to low efficiency.

The technology used in the transportation channel of agricultural products, such as fresh-keeping, anti-corrosion and anti-damage, is a very important technology in the channel of agricultural products, with high water content and short shelf life of agricultural products. the characteristics of extremely perishable deterioration put forward high requirements for the trading time and fresh-keeping conditions of the channel, but the current channel construction and technical level of our country need to be improved.

 
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