A Study On Organization Of Chinese Traditional And Herbal Drugs Industry In Shandong

There are age-old developing history and fine resource condition for the Chinese traditional and herbal drugs industry in Shandong province,which developed fast from the Reform and Openness,especially the middle of the 90s last century,certain scale formed, export increasing fast,Important influence existing in the development of the whole Chinese traditional and herbal drugs industry,and the favorable developing basement possessing.The development of Chinese traditional and herbal drugs has become an important industry for the adjustment of the agricultural structure and the increase of the farmers' income in the suitable areas.With the development of society and the changes of the human beings living environment and the natural conditions,the demand for the Chinese traditional and herbal drugs is increasing and the demand for the quality of Chinese traditional and herbal drugs is also elevating each year.But because of the marketing action and the influence of the organizing structure of the Chinese traditional and herbal drugs industry in Shandong province,the marketing performance is not fine, and the industry competitive power is not trenchancy enough.So a systematic research for the Chinese traditional and herbal drugs in Shandong province at the angle of Industry organization is demanded.In this paper,according to the Economics,the Theory of Industrial Organization,the System Economics,the Theory of Games,the author analyzed the Chinese traditional and herbal drugs industry by recommending the classic SCP analyzing method from the Theory of Industrial Organization,and did the systematic research on the Chinese traditional and herbal drugs industry in Shandong province by the methods of history and current situation analysis,qualitative and quantitative analysis,demonstration and norm analysis.The mainly outline and the content of this paper include:First,the author did an all-round and different analysis on the Structure,Conduct and Performance in the links of the production and the marketing of Chinese traditional and herbal drugs and Chinese medicine in Shandong province.Secondly,producing Chinese traditional and herbal drugs in GAP is the basic producing mode to improve the quality of Chinese traditional and herbal drugs. So the author did the analysis and research for the malpractice of actual producing and managing system,the system innovation and amendment in a chapter arranged specially. Thirdly,an analysis for the cooperative and latitude cooperating organization of the industry in Chinese traditional and herbal drugs industry in Shandong province is contributed.The different policies and advises for improving the development of Chinese traditional and herbal dugs in Shandong province are put forward,through the analysis and research for the interrelated problems which exist in the different arrangements and links of Chinese traditional herbal drugs industry influencing the industry health development.The main viewpoints and conclusions are the following:1.Through the investigation and analysis study,we can find that the planting of Chinese traditional and herbal drugs is in a comparatively great scale,but the scale of single firm is very small lacking scale economy.There are no entering and existing barriers for the producers by current market structure of Chinese traditional and herbal drugs. Because of the lack of unified handle technology,the difference of the quality of Chinese traditional and herbal drugs products produced by many different producers is notable, while the difficulty to do timely and effective judgment for this difference and the high identical of the external mass lead to the heavy compacting intensity.Because of the blind when the producers arrange the production with the lack of information,the income expectation is uncertain.In order to gain much benefit,farmers are inclined to request outcome per unit area and ignore the inherent quality,under the statement of autonomy, tradition and short of supervision by the family production.It goes against with the pure and stable quality requested by Chinese traditional and herbal drugs.In the frame of current field managing policy,the farmers should make more cooperation and high-organizing with each other.In order to improve the development of the industry health in Shandong,technical adviser and quality supervise should be reinforced and the production of Chinese traditional and herbal drugs estate should be standardized.2.The quality of the production of Chinese traditional and herbal drugs ensures the industry development health.The target producing Chinese traditional and herbal drugs in GAP is to produce high grade,stable,controllable Chinese traditional and herbal drugs and to provide high grade's raw material for the Chinese medicine production.It needs huge fund and tremendous technology to produce Chinese traditional and herbal drugs in GAP, which could not enter and exist easily.The firms producing Chinese traditional and herbal drugs in GAP are the main bodies in market.In the current "Chinese medicine firm plus technology plus base plus farmers" managing system,farmers,microcosmic main bodies, are the concrete executors who producing Chinese traditional and herbal drugs.Within technical advise and contact restriction and supervise,firms can obtain high-quality Chinese traditional and herbal drugs in short time,but not in a long time.The quality of Chinese traditional and herbal drugs can be ensured by farm firms managing integrating, but the work efficiency is lower than former.So the system conflicts between the farmer single production and the farm firm production appears in the production of Chinese traditional and herbal drugs in GAP.Through the research,the author thinks that the amended farm firm managing system should be adopted to produce high grade Chinese traditional and herbal drugs.In this system,high-quality Chinese traditional and herbal drugs can be ensured with high work efficiency.3.Beneficial result from producing Chinese traditional and herbal drugs is ensured by implementing effective marketing.Now,though there are many people working on Chinese traditional and herbal drugs marketing in Shandong province,small scale and relax organization hinder the advanced marketing methods applied.Chinese traditional and herbal drugs plucked are not dealt with standard,concluded into many grades and sold as average goods.Much more buying and selling happening in country and middle links did not organized according to the GSP of Chinese traditional and herbal drugs,so the qualitative problems such as mixing and mildewing are easy to appear.Because the buying and selling cooperating organization in country has not been founded,the effect of developing marketing alliance is limited;too many main bodies in the market hindered the efficiency of compaction;the entire market supervising system does not exist.All of them limit the competition of Chinese traditional and herbal drugs,and the industry stable development in Shandong province to a centain extent.So,the standard Chinese traditional and herbal drugs marketing system should be founded as the main point,the market supervising system should be perfected,the sellers action should be standardized strictly by GSP of Chinese traditional and herbal drugs,the standard quality ensuring system and quality tracking information system should be founded,the market should be developed by high quality production and marketing credit,so the benefit of the Chinese traditional herbal drugs' producers and sellers can be ensured.4.Chinese traditional and herbal drugs can only be used to cure the sickness and save the patients by doctors of traditional Chinese medicine,and consumed by patients after processed into Chinese patent drug or tablet.Chinese medicinal and herb processing is a kind of industry with much capital,high technology,high reply and high risk.It is difficult to enter and exist because of technology,capital and policy.For the reason of history,there are many Chinese medicine processing firms mainly applying to produce Chinese medicine with traditional formula,but most of them did not bring efficiency into production,or not work in Minimal economy scale.The compaction of the Chinese patent medicine is very intense,and the industry Characteristics is not embodied sufficiently. Only several firms in advantage scale can research and develop new medicine.The industry competition should be improved further.The firms with advantage should be encouraged to expand scale,the entering barrier for Chinese medicine industry should be reinforced,the industry should be concentrated appropriately;cooperation marketing tactics should be adopted,the compaction in the market should be weakened,the marketing cost of Chinese medicine should be reduced and the competition of the firms and the industry can be lifted.5.Competition can help to lift the level of productivity,and cooperation also can improve the development of productivity effectively.Aiming at the fact that single Chinese traditional herbal drugs' producer is weak,according to Cooperative Theory,the author think that Chinese traditional and herbal drugs' producers should cooperate strongly,in order to further improve negotiation ability for buying capital goods and selling product, reducing transaction costs,improving beneficial result.The Chinese traditional and herbal drugs' producers in Shandong province are in the small scale with little "surplus of working together" and lack the enthusiasm of cooperation;the scale and influence of the cooperation organization is too minor to develop effective service,which made the landscape orientation cooperation of Chinese traditional and herbal drugs develop slowly. The traditional dominance of the small group and the leading effect should be exerted and more effective supporting should be strengthened,and specialization and scale-rization of production and cooperation should be improved.The cooperation in the industry can cut down the costs of transactions between upstream and downstream enterprises in the industry effectively and improve the industry's competitive power.The low organization degree of the producers and sellers,the unobvious benefit of cooperation and the opportunism behavior in the cooperation made the development slow and the organization unstable.So the organizing degree of each link should be hard strengthened,scale expanding and create building of the market main bodies should be strengthened in order to establish the base of cooperation and achieve the two-to-win of cooperation in the industry.