Cost Of Agricultural Products Circulation And Distribution Of Interests In China

In the situation of vigorously promoting the building of a new socialist countryside in the Central Committee of the CCP, to promote farmers incomes sustained growth is always the central task of agricultural and rural economic development. However, with the total output of agricultural products in the ever-growing, the increasing of farmer's income falls into a difficult position. After systematically reviewing and commenting on the agricultural product circulation which domestic and foreign scholars research on, the author attempt to study the increasing of farmers' income from the perspective of circulation cost.This paper aims to study cost and profit which agricultural products produce in each circulation link, compare the distribution of profit among different links, analyze deep level reasons why the farmers have difficulty increasing income and thus propose suggestions to increase the income of farmers. This paper is a case study. It selected the vegetables—eggplant as the research object. And the author investigated the eggplant from the origin to sell into the consumers the four circulation links—the purchase link, the transportation link, the wholesales link and the retail sales link through depth interviews with stakeholders of each circulation link. Through comparison of the production cost, circulation cost and the price of two kind of eggplants, this paper discovered the profit distribution among each circulation link which is unbalanced, compared with farmers the middle business gain the relative higher profit.Thus, the author thought the difference of industry nature is the basic reason that farmers' income is less. In order to change the present situation of the farmer's output growing without income increasing, we should take some measures from both production and circulation. In production processes, through the use of advanced science and technology, improving production conditions and agricultural productivity, it can help fanners improve their efficiency in the use of funds; in circulation link the key point is to enhance the ability of farmers to participate in circulation. Through vigorously developing industrial management of agriculture and farmers circulation Cooperation Organization, it can make farmers truly share the agricultural products value-added in the supply chain.