Research On Managing Mechanism Of State Grain Reserves

For many, the concept of strategic grain reserves is as familiar as the concept of maintaining stocks of grain in years of good harvests in order to prevent famine. As a matter of fact, events over the past years have evoked an awareness and understanding of the importance of establishing strategic grain reserves. However, just understanding this issue is not enough for managers of strategic grain reserves. Managers must know how to effectively manage the limited resources of strategic grain reserves.State grain reserves are the largest part of the resources of strategic grain reserves and often play a crucial role in mitigating a food supply crisis. The ability to manage state grain reserves is not only decisive for mitigating a food supply crisis, but it also influences the reform of the grain circulation market. Therefore, we must conduct more research on the management of the mechanism of state grain reserves, considering the change from planned management to market management, closed market to open market, monopoly to competition, so as to improve the quality management and rapid distribution when it is necessary of state grain reserves.After reviewing and summarizing the managing mechanism of strategic grain reserves in China and other countries, this research considers the managing mechanism of state grain reserves as a system and applies the method of system science (dissipative structure theory) to analyze and discuss the system. The main conclusions are as follows:1,Establishment and improvement a dynamic and well-ordered operation mechanism of state grain reserves is characterized as;"one core, five features". Achieving two basic tasks of state grain reserves is the core of the operation mechanism. Clear criterion, stability, openness, smooth circulation and self-organization are the five features of a good operation mechanism.2,Characteristics of state grain reserves decide its management. Short-term supply and public goods are two important characteristics of state grain reserves and determine the reserves'goals and management elements.3,Changing the roles of administrative sectors at all levels of state grain reserves is necessary. The government should change its management scope and methods. The management of grain reserves should change from direct stocks of different sectors to state grain reserves management. The operation of contracted enterprises should change from monopolization to competition.4,It is necessary to Establish and improve the dynamic reserve management of state grain reserves. Dynamic reserve management includes reserve amount, stock categories, stock structure and spacious distribution, which enables the market balancing function of state grain reserves to the maximum extent and realizes the full use of limited resources.5,The three-dimensional analytic structure of state grain reserves which is built by the Hall three-dimensional theory (Arthur D. Hall) helps the decision making to deal with the food supply crisis in the course of delitescence, breaking up period and ending period.6,State grain reserves management should follow two basic rules in normal conditions. The first rule is to realize the minimized influence of the existing grain market and the second one is to realize that management must be based on the effective use of the market mechanism. Following these two rules will contribute to the stabilization of the grain market, and is the basis for the establishment of a good partnership between the state grain reserves system and grain operators.In summary, confronted with the reform of the grain circulation market and the change of the institution of state grain reserves administrative, the managing mechanism of state grain reserves should be adapted accordingly. There are many options regarding what, and how to make these changes. This research has provided some of them. It brings to light a group of ideas, principles and methods to enhance the management ability of state grain reserves towards the ever changing market environment.