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Fang 2007 Master's Thesis: Research on Interest Linkage Mechanism between Farmers and Leading Enterprises in Agricultural Industry Chain
Author:/Date: June 27, 200713: 44
abstract
With the development of market economy, the division of labor in agriculture is getting finer and finer, and the level of specialization is getting higher and higher. It has formed a complete industrial chain from the supply of means of production, agricultural products production to agricultural products processing and sales. The agricultural industrial chain in developed countries developed earlier and its commercial operation was more mature, which greatly promoted the development of regional agriculture and improved the economic benefits of agriculture. China's agricultural industrial chain has developed to a certain extent, and various agricultural industrial chains have been formed in various places, including beef industrial chain, vegetable industrial chain and pork industrial chain. The content and form of industrial chain are constantly enriched and improved. In the agricultural industrial chain, the interest relationship between farmers and leading enterprises is an important part of the stable development of agricultural industrial chain, and it is of great theoretical and practical significance to study the relationship between them.
In this paper, the previous research is reviewed. This paper summarizes the concept, organizational form, operation mechanism and interest linkage mechanism between farmers and leading enterprises of agricultural industrial chain, and focuses on the interest linkage mode, influencing factors and theoretical explanation. In the summary, the existing literature is briefly reviewed and the research direction of this paper is pointed out. On the basis of summarizing the previous research results on agricultural industrial chain and interest linkage mechanism, the theoretical basis and framework of this study are put forward. The theoretical basis is mainly industrial organization theory and transaction cost theory. In the theoretical framework, the interest linkage mechanism between agriculture and leading enterprises in agricultural industrial chain is divided into two categories, namely, the loose interest linkage mechanism of market transaction and the close interest linkage mechanism of contract transaction, and the factors affecting the relationship between them are analyzed. All kinds of influencing factors are summarized into three major factors: institutional environment, transaction subject-object characteristics and transaction characteristics, and further subdivided into specific factors. In the theoretical framework of the system, the influence of various factors on the interest linkage between farmers and leading enterprises is expounded respectively, and on this basis, theoretical assumptions are put forward and the framework diagram is drawn.
In the case study part, combined with the jasmine industry chain and cocoon industry chain investigated in Hengxian County, Guangxi Zhuang Autonomous Region, this paper analyzes the concrete embodiment of various factors affecting the interest linkage mechanism in the two industry chains. In the case analysis, firstly, the basic situation of industrial chain development and the basic links of jasmine and cocoon industry are introduced. Then, the influencing factors in the agricultural industrial chain are analyzed in detail from the aspects of institutional environmental conditions, transaction subject and object characteristics and transaction characteristics. Institutional environment provides external environmental conditions for the development of agricultural industrial chain, which is conducive to the healthy development of agricultural industrial chain. The characteristics of trading objects refer to the natural attributes and product quality of jasmine and cocoon. The main trading subjects are farmers and leading enterprises. The characteristics of farmers are mainly described from two aspects: their planting scale and input of production materials. The characteristics of leading enterprises are reflected in their ownership nature, output value, profit, number of enterprises, assets, liabilities, enterprise area, enterprise head, enterprise department, equipment, scientific research strength, production technology, enterprise homogeneity and so on. This paper expounds the characteristics of trading mode from three aspects: asset specificity, trading frequency and uncertainty. Asset specificity is not discussed separately, but discussed together with the characteristics of farmers and leading enterprises. Transaction frequency reflects the transaction frequency between farmers and leading enterprises. Uncertainty refers to market price fluctuations and natural risks. Based on the analysis of different characteristics, farmers and leading enterprises weigh the transaction cost and other benefits, and finally choose different interest connection modes, market interest connection mode and contract interest connection mode of jasmine and cocoon industry chain. This paper introduces the working principles of these two trading methods in detail. The two transaction modes generate endogenous transaction costs and exogenous transaction costs, and are analyzed in detail with cases. Endogenous transaction cost is the transaction cost caused by opportunistic countermeasures and the difference between market equilibrium and Pareto optimality. Exogenous transaction cost refers to the expenses directly or indirectly incurred in the transaction process, including the resources and facilities consumed in transportation. Finally, the income of a single farmer is calculated. Different agricultural industrial chains, different planting scales and different economic benefits.
At the end of the article, the conclusion of this article is drawn. The institutional environment of jasmine is general, the requirements for the quality of jasmine products are low, the scale of farmers is small, the strength of leading enterprises in jasmine is average, the asset specificity of both parties in jasmine trading is weak, the fixed trading frequency is low, and the uncertainty is great. These characteristics * * * determine that farmers and leading enterprises in jasmine adopt the way of linking market interests. The institutional environment of cocoon is general and targeted, with high quality of cocoon products, large scale of farmers, strong strength of cocoon leading enterprises, special assets for both sides of cocoon trading, high fixed trading frequency and low uncertainty. These characteristics * * * determine that sericulture farmers and leading enterprises adopt the way of linking contractual interests. The two ways of linking interests are the result of the interaction of many factors, and a single factor may not necessarily lead to this result.
This paper also gives the policy implications. Different agricultural industrial chains have different characteristics, so it is necessary to choose appropriate interest linkage mechanism according to local conditions, strive for more preferential policy support, and promote the development of agricultural industrial chains. The leading enterprises of jasmine should strengthen merger and alliance, broaden sales channels and do a good job in marketing propaganda. Cocoon leading enterprises should further improve the interest relationship with silkworm farmers, enhance the driving force of enterprises and give play to the role of associations. Finally, the shortcomings of this paper are pointed out, and the direction of further research is pointed out.
Keywords: farmers; Leading enterprises; Interest linkage mechanism
abstract
With the development of market economy, the division of labor in agriculture has become more and more detailed and the degree of specialization has become higher and higher, forming a complete industrial chain from the supply of means of production, the processing of agricultural products to the processing and sales of agricultural products. The agricultural industrial chain in foreign developing countries developed early and its commercial operation level was high, which promoted regional agricultural development and increased agricultural economic income. In China, agricultural chain has developed to a certain extent, and various characteristic agricultural chains have appeared in some areas, such as beef chain, vegetable chain and pork chain, and their contents and forms are constantly being enriched and improved. In the agricultural industrial chain, the relationship between farmers and agricultural enterprises is an important part of the stable development of agricultural industrial chain, and the research on the relationship between them has important theoretical and practical significance.
This paper summarizes the previous studies. This paper summarizes the concept, organizational form, operation mechanism and interest mechanism between farmers and agricultural enterprises of agricultural industrial chain, and mainly summarizes the forms, influencing factors and theoretical explanations of interest linkage. In the summary, we made some simple reviews and pointed out the research direction. On this basis, the theoretical basis and framework of this paper are put forward. The theoretical basis includes industrial organization theory and transformation cost theory. Under this theoretical framework, we study the interest mechanism between farmers and agricultural enterprises in the agricultural industrial chain, which is divided into loose interest relationship in the form of market exchange and close interest relationship in the form of contract, and analyze the factors affecting these two relationships on the basis of summarizing previous studies. Various factors are summed up as institutional environment, exchange subject-object characteristics and exchange characteristics, and more subdivision factors are divided. In a systematic theoretical framework, various factors affecting the interest relationship between farmers and agricultural enterprises are analyzed, and on this basis, theoretical assumptions are put forward and a framework diagram is drawn.
On the basis of theoretical analysis and investigation of Xi jasmine industry chain and cocoon industry chain, the influence of various factors on profit mechanism is analyzed. Firstly, it introduces the basic situation of industrial chain, jasmine industrial chain and cocoon industrial chain. Then it analyzes various influencing factors from the perspective of institutional environment, transaction subject and object characteristics and transaction characteristics. The institutional environment provides good environmental conditions and is conducive to the healthy development of the agricultural industrial chain. The characteristics of exchanging guests are the natural attributes and production quality of jasmine and cocoon. Trading subjects mainly include farmers and agricultural enterprises. The characteristics of farmers come from their scale and the input of means of production. The characteristics of agricultural enterprises come from their assets, output value, profits, number of employees, assets, liabilities, housing area, person in charge, department, equipment, scientific research, production technology and homogeneity of enterprises. The characteristics of exchange come from asset specificity, exchange frequency and uncertainty. The characteristics of assets are not discussed separately, but together with the characteristics of farmers and agricultural enterprises. The switching frequency reflects the degree of switching frequency. Uncertainty is discussed from market price fluctuation and natural risk. Based on the analysis of different characteristics, farmers and enterprises weigh transaction costs and other profits, and finally choose different profit mechanisms between jasmine industry chain and cocoon industry chain, namely market profit mechanism and contract profit mechanism. The content of how these two exchange mechanisms work is discussed. These two exchange mechanisms lead to endogenous transaction costs and exogenous transaction costs, and are analyzed in detail with cases. Endogenous transaction cost comes from opportunistic countermeasures, which is equal to the balance between market equilibrium and Pareto optimality. Exogenous transaction cost is the transaction cost that directly occurs in the exchange, which includes the resources and various facilities in the transaction. Finally, the income of a single farmer is calculated. Different agricultural industrial chains have different planting scales and different economic benefits.
At the end of the paper, a summary is made. The institutional environment of jasmine is general, the quality requirements of jasmine are low, the scale of farmers is small, the power of jasmine agricultural enterprises is general, the asset specificity of the two trading entities is soft, the fixed frequency is low, and the uncertainty is great, all of which determine the market interest mechanism between jasmine farmers and agricultural enterprises. The institutional environment of cocoon is universal and special, with high quality of cocoon, large scale of farmers, strong influence of cocoon agricultural enterprises, strong asset specificity of both parties, high fixed frequency and low uncertainty, all of which determine the contractual profit mechanism between cocoon farmers and agricultural enterprises. These two mechanisms are the result of various factors, and a single factor does not necessarily lead to this result.
The article also puts forward some policy implications. Different agricultural industrial chains have different characteristics, so we should choose different profit mechanisms according to specific conditions and strive for more preferential policy support. Jasmine agricultural enterprises should strengthen merger and cooperation, enrich sales channels and do well in market advertising. Cocoon farmers' enterprises should further improve the relationship with cocoon farmers, strengthen the incentive of enterprises and give play to the role of associations. Finally, the shortcomings of this paper are pointed out, and the possible research direction is pointed out for further research.
Keywords: farmers; Agribusiness; Profit mechanism