Study On The Problem Of Profit Mechanism Between Predominant Enterprise And The Milk Farmers

Concentrating on the unsettled problem of development of profit mechanism between predominant milk enterprise and the milk farmers all along in the progress of milk industry, the paper sums up the developing process of profit mechanism, while analysing the main reason in details both theoretically and practically, for which an actual profit mechanism fails to be set up between predominant milk enterprise and the milk farmers all the time. At the same time, the paper puts forward concrete strategy of constructing new profit mechanism as well as makes a deep demonstration on its meanings.At present, milk industry module in our country can be divided into four types, namely, being driven by market, affected by predominant enterprise, started up as well as impelled by joint economical organization. None of theses types can meet the need of the development of agricultural industrialization , as a result, it is essential to build new profit mechanism so as to ensure the continuous and healthy development of the milk industry, which can be defined as interest community, where the predominant enterprise and the milk farmers share the profit and risk together, the milk farmers act both as producer and as the share holder, the enterprise as manager and the agent for the milk farmers' interests.The obstacle on the way to erect new profit mechanism is lack of investment ability for the milk farmers. Cultivating this capacity is the key to solve the problem. Taking access of land and pasture, producing equipment or agricultural products evaluation guarantees that the milk farmers perform as the producer and the deciding-maker, who gain the producing income and the producing momentum income simultaneously .As a consequence, the income of the milk farmers and investing ability will increase gradually, to the point that investors enjoy the profit from the investment when the new profit mechanism can be formed. The formation and subsequently improvement of the mechanism is accompanied by increment in milk income, transition of the rural work force, realization of the agricultural extensive management ,rapid constructive development of the small-sized town, wide spread of agricultural technique and elevation of agricultural industrialization, that is to say ,by that time, the economical gap between urban and rural is sharply shortened, also ,the urban and rural whole-planning development come true. The meaning of organization of new profit mechanism between predominant milk enterprise and the milk farmers lies in possibility to realize the target set by the 16th session of the Party to construct massively wealthy society.In short, the problem of profit mechanism between predominant milk enterprise and the milk farmers can only be settled through profit methods instead of none-profit methods, only in this way can we promote the persistent development from the milk industry to the agricultural indusrializaion.