Study On Organizational Forms And Efficiency Of Dairy Chain In China

Dairy industry is an important sector in agricultural economy in China. It is a significant meaning to speed up development of dairy industry for improving the meal structure of residents and body constitution, increasing peasant's income, and for optimizing industry structure of rural as well as promoting relevant industries.In recent years, the dairy industry of our country has got great development. Supply and demand of milk and dairy products have increased at the very fast pace. But because the dairy industry of our country is still at initial stage of development at present, some problems to be solved urgently still exist in the course of developing.Firstly, it is the building of milk sources, Lower level of organization, management mode and raise technique, our country raw materials overall efficiency that milk produce still high at present, which caused lowness of production performance in materials milk. So supply of raw materials milk can not catch up with demand of dairy in course of fast-developing.Secondly it is the cooperation of each participates in dairy industry. Cooperation among agri-chain members is the difficulty of agri-chain management. However, to guarantee the success of agri-chain, participates must keep one good stable partnership. In recent years, the disharmonious situation takes place occasionally each participate in dairy chain, especially between milk farmers and processing enterprises, which has restricted the benign development of dairy industry seriously.So how to enhance production performance of raw materials milk in our country as soon as possible and improve quality of products conscientiously, deal carefully with cooperation relationship among chain members, as well as to strengthen the organization intensity of dairy chain, which are all urgent problems for keeping fast development continuously and tackling challenge of WTO in our country's dairy industry.For this reason, this paper discussed dairy stages and their organization mode and performance at the angle of organization. It is aim at comparatively analyzing operation efficiency of different organization modes in our country's dairy industry, in order to support for developing decision and strengthening international competitiveness of dairy industry in our country.The research approach of this article is empirical analytical method mainly based on a real example on field investigation. In order to know the organization mode and efficiency of the present dairy chain of our country, we launched the extensive field investigation in the whole province of Jiangsu. Choice to investigation sample was taken random sampling method. We chose 20 cow pasture, 30 cow cultivation zone and 500 peasant households separately, and deeply interviewed 50 administrators of 14 dairy products processing enterprises.Through the investigation, we got input and output data about three production organization modes of main raw materials milk, including the material and value amount. We obtained that chain members estimated for organization modes of dairy products marketing and their efficiency and cooperative effectiveness between dairy processors and raw material suppliers.Contents and results of the research are as follows:(1)Analysis on organization modes in material production. We compared three kinds of production modes which are peasant household's, minuses of cow's cultivation zone and modernized pasture in raw materials milk production of our country. The results were found that though scattered raise mode of peasant household have a great deal of drawback, but it is the main organization modes in raw materials milk production of our country.(2)Analysis on productive efficiency of different organization modes in raw materials milk production. From two respects of input and output of the material and economical cost-effective, we compared productive efficiency of peasant households, district and pasture in raw materials production.The main analysis results includes:â‘ input cost of pasture raise is the highest, district is second, and then scattered raise of peasant household The input cost which each cow every year is higher by 25.78% than that of cow's district on average on the pasture, higher by 58.55% than peasant household's family.â‘¡About cost and benefit of unit product, peasant household is the highest in cost-benefit ratio, the cow takes second place in the district, the pasture is the lowest.â‘¢The detection of the material content of raw materials milk analysis indicates that the quality of the pasture fresh milk is higher than cow's cultivation zone, that of raise zone is higher than peasant household's family.â‘£According to material consumption of the unit product, pasture, and cow district are smaller than peasant household raise obviously.(3)The organizational model and efficiency analysis of dairy products marketing. There are three main marketing models of dairy products in China: marketing channel owned by dairy process company, marketing channel of malls and supermarkets, and marketing channel operated by franchiser or agent. This three marketing models have both advantages and disadvantages. When choosing marketing model, a dairy process company must do a comprehensive analysis for different channels incorporated with its business strategies and its capability, so that it can reach an appropriate marketing portfolios. To evaluate the efficiency of these marketing models, we first developed an evaluating index system, which consists of seventeen indicators divided into four clusters, i.e. channel managerial level, functional indicators, flexibility indicators, and financial contribution indicators.Using investigation data and the Analytical Hierarchy Process (AHP), we measured and evaluated the efficiency of the three marketing models. Our research showed:â‘ channel of franchiser or agent depends deeply on company's capability, so dairy companies with high capability are more easier to use this marketing model.â‘¡as far as marketing scope is conserned, the priority of these three marketing model is channel of franchiser/agent, channel of marketplace/supermarket, and channel of company itself in sequence.â‘¢the main advantage of channel of company is higher communication efficiency between company and consumers and less confliction and cooperational risks; while channel of marketplace/supermarket is good at promoting company's public imaging.â‘£the main disadvantage of channel of company is huge construction and operation costs, while channel of marketplace/supermarket has the largest contribution to company's sale.(4)The cooperation efficiency analysis between dairy process company and its suppliers. The cooperation relationship and cooperation efficiency are key factors that influence performance of dairy chain as a whole. To evaluate cooperation efficiency and to identify its main determinants, we developed an evaluation index system, which includes fifteen indicators divided into four clusters, that is cooperation willingness, cooperation capacity, cooperation returns and cooperation risks.Using servey data and AHP, we conducted an empirical research about the cooperation efficiency between dairy company and dairy farmers, dairy farms and dairy pasture respectively. Our research shows: a) dairy pasture has the highest cooperation efficiency, then dairy farms, while dairy farmers has the lowest. b) dairy pasture has the highest cooperation willingness, while dairy farmers have the lowest, they prefer to do business with dairy company in market and provide raw milk to buyers who offer highest price. c) as far as cooperation capability and cooperation returns are conserned, pasture and farms performed much better than farmers, while the cooperation risks has no obvious distintion between farms and farmers. d) dairy farmers are more consern cooperation returns, while pastures and farms consern the quality of communication and improvement of respondness to market and consumers as well as profitability.