China's Cattle-Beef Chain

The further development of China's beef industry is faced two aspects pressure. On the one hand, with the growth of income, the beef consumption increases rapidly. This incretion is show on the quantity aspect, Even more on the quality. On the other hand, after WTO's entry, beef products will meet the competition not only in the foreign market, but also in the domestic market. At present, this part of beef is small, but the value is high. So it is the key for the further development of China's beef industry that improving beef quality and competitiveness.Improving beef quality relats to cattle production meatpacking and beef marketing. Increasing the competitiveness needs the efforts of the whole industry chain, not the only efforts of individual enterprises. Under the frame of agricultural chain, this thesis uses SCP form of industrial organization, the game theory, the value chain theory, the methods of case study and econometrics to analyze the three key links of beef industry and their cooperation.The basic conclusions are: The level and the structure characteristic of beef consumption, production and processing are decisive factors to the extent of vertical cooperation of beef chain. At present, there are two types of beef chain. The traditional one occupies the main propotion and the morden one plays a leading role. No matter domestic or abroad, beef chain fails to form an integrated supply chain like pork, poultry chain. In the modern chain, larger-scale meatpacking enterprises are the core of chain. When cooperating with fanners, they would like to choose the larger-scale household. The motivating cause is that meatpacking enterprises can obtain the greatest distribution of interests. The transaction cost is the main factor that influenc households to choose the form of cattle selling. Fanners cooperate with processing enterprise in order to reduce the uncertainties. In the guidance of production , the traditional beef chain implements the cost-leading strategy. Taking the demand as guidance, the modern beef chain implements the product-difference strategy . The final value that the modern beef chain creates is obviously higher than the traditional one. Its " strategic link" is meatpacking stage.Under the frame of cattle-beef chain, this thesis studies the beef chain from the aspect of structure and transaction cost. The probably new points are as follows. (1) Finding the decisive factors and the essential features of beef chain.by studing the structure and level of the three important link of beef chain and by comparing beef chain with pork and poultry chain. (2) Revealing the motivating cause that the enterprise behavior in cooperating with farmers according to the game theory (3) Measuring the importance of transaction cost in cattle marketing using Logit analysis. (4) The value chain of beef in different quality, is systematically analyzed according to the value chain theory.