The Vertical Integration Research Of Dariy Industry In China

As China's economic development and continuous improvement of people's living standard, China's population of dairy consumption will increase further. In the strategic adjustment of industrial structure in rural China a critical period, milk may become a major agricultural development in the future pillar industry. The outbreak of the "Sanlu incident" in September of 2008 gave the Chinese dairy industry as a whole resulted in a near collective hit. The root causes of the incident are thought-provoking. How to make the development of dairy industry healthy in the future even more worth exploring.The event makes the community see the importance of food traceability system-if there is a complete retrospective system, we can grasp the products in question in the first time, the quantity and direction, the first time linked to the consumers to purchase products to them issued a warning to stop eating in the first time, the recovery of product safety problems... However, these are only an ideal state. At present, China's "back" system is still in the establishment of sound among the many shortcomings to be offset. Most manufacturers have not used from the perspective of industry chain to design the future of enterprise development strategies. To control their product quality and most effective way to probably still have to start from within the enterprise, then the milk prices should take the road of vertical integration worth exploring.This form of organization from the dairy industry in this perspective to analyze the "Sanlu incident," the source, to explore the feasibility of dairy industry to implement vertical integration. The hope for the healthy development of China's dairy industry to provide an optional way to enhance the international competitiveness of China's dairy industry. This is China's dairy industry's growth strategies and government policy-making dairy industry, are of great significance. In explaining the background and purpose of the study, the paper first introduces the Chinese dairy industry development status and related policies. Mainly from the dairy industry characteristics and market structure to analyze the status of China's dairy industry development. Policy lists a number of recently issued relevant policies. Then from the analysis of the industry chain leads to the analysis of vertical integration. Analysis of China's dairy industry, vertically integrated organization model of the influencing factors and their effects. Then the Chinese dairy industry and dairy industry, vertical integration of foreign comparison. China Dairy Industry came to the conclusion to accelerate integration of the imminent conclusion of the study and make recommendations.