Economics Analysis Of Watermelon Industry In China

Watermelon is an important and efficient horticultural crop in China. It has played an importantrole in increasing farmers’ income and meeting people’s increasing demand for life. Chinesewatermelon industry has made a considerable progress in the process of development since the policy ofreform and opening up in China. It has gradually become the world’s largest watermelon producer andconsumer countries. With the economic development and improvement of people’s living standards inurban and rural areas, watermelon’s position in the plant industry has become increasingly important,and it will continue to contribute to sustainable agriculture in the future. My thesis has made acomprehensive research on Chinese strategic position of the watermelon industry, circulation,production, consumption, trade and comparative advantage. The thesis has drawn support from theindustry economics and econometric theory, and it has also combined with field research and surveysfrom an economic perspective to explore the inherent law of the watermelon industry development inChina and its policy implications. My thesis will provide a scientific theoretical guidance and policydecision-making for economy of Chinese watermelon industry.Watermelon production has dominated a leading role in fruit production in China. Eastern andsouth-central China is a major place for watermelon production, and its production has accounted forthree-fourths of the country. Based on the analysis of the watermelon production situation, I have usedDEA to have a measurement on production efficiency of watermelon production during2010to2012ineighteen provinces (cities) in China. Then it came the result that watermelon overall productionefficiency is high, integrated efficiency for85.2%. The structure of watermelon production inputsoverall exists the problem of inputs excess outputs, and the most serious factors are pesticide and filminputs redundant situation. Through investigation of household surveys about watermelon production inhave not participated in any watermelon related to technology training. In technology needs aspects,52.71%under investigation households reckon that technology of seeds is the mostly needed in currentdays.As the residents’ consumption structure has gradually escalated, the consumption for watermelonin China has risen sharply; the percentage of annual consumption growth of watermelon is6.21%from1996to2011. Through the analysis of the status of watermelon consumption characteristics in China,here comes the build watermelon consumption model. Then it comes to our long-term spending habitsof the residents, at the same time, here is a ratchet effect, the price is still an important factor affectingthe watermelon purchase. The thesis has a questionnaire survey about the consumption status for theresidents in Beijing and Zhengzhou city. Then it comes the result that the watermelon consumerbehavior is quite different. With the use of the Logistic Model, I have analyzed the basic characteristicsof individual consumers on watermelon purchasing decision.Availability and price policy is one of the key factors in affecting watermelon market andwatermelon industry development in China. The thesis reviews evolution of the watermelon circulation system and the evolution of the price management system, and it also analyses the flow characteristicsand problems of watermelon and studies the long-term equilibrium between the watermelon yield andprice in China. I have found that the price is the yield of Granger cause, watermelon production cycleand the lag phase, the second phase of the cycle is to change in prices, while those of the watermelonprice mostly yield for the current period.The import and export of watermelon trade in China have development in a disproportionate waycompared to the production of watermelon. The problem is that the market for import and export isexcessively concentrated. Further measurement method and index system for analysis of Chinesecomparative advantage and regional comparative advantage to international competitiveness ofwatermelon, watermelon production in China have been drawn to strong regional comparativeadvantage. But the international competitiveness is low, lagging far behind other watermelon exportersin the world. There is a huge potential for export.Based on the above researches, I have made the following recommends on Chinese watermelonindustry. In production aspects, it is important to highlight technology innovation and technologytraining, to strengthen protection of resources and construction of basal facilities, to essentially improvewatermelon integrated production capacity and guarantee the benign cycle of watermelon production. Inconsumption aspects, it is time to optimize the varieties structure, to achieve watermelon on high qualityand low price, while auxiliary to various watermelon products. In circulation aspects, it plans to activatemodern logistics technology, and constructs a sound system for watermelon market construction, and toreduce production of watermelon and the risk for marketing. In foreign trade aspects, it plans to improvethe quality standard of watermelon products, to participate actively in international trade, and thengradually increase the international competitiveness of Chinese watermelons.