The Study Of Dairy Supply Chain In Shijiazhuang Based On The Quality And Safety Of Raw Milk

Since the reform and opening-up, especially over the past10years, China’s dairyindustry has been developing rapidly, the growth rate of cows number and raw milkproduction is much higher than the average rate of the world, and the asset and sales haveachieved improved significantly. But behind China’s dairy industry unconventionaldevelopment, there is a huge quality crisis. In recent years, dairy quality and safety problemshappened so frequently, especially the “melamine” event unmasked the quality and safetyproblems of China’s dairy industry completely. One of the reasons for the “melamine” eventis lack of supervision, but the problem can be solved through strengthening supervision,which will lead to the increasing of the regulatory cost, and when the cost falls, the securityproblem will come back. The root reason of “melamine” event is not lack of supervision, butthe structure defect of China’s dairy supply chain. On one hand, the mode of backyard willbring the difficult of controlling epidemic and the adulterated behavior of individual station;on the other hand, the distribution of benefits between dairy farmers and dairy enterprises hasnot formed, dairy enterprises squeeze dairy farmers and transfer the risk of industrial chain todairy farmers, so adverse selection and moral hazard problem under conditions of asymmetricinformation will occur when the supervision is ineffective. Therefore, how to reconstruct thedairy chain, ensuring the quality and safety and reducing the supervision cost is the key torevive the China dairy industry.Shijiazhuang, as the most serious disaster area, has changed largely in recent years: allthe cows have entered farming community. Through the research of farming community,found that most of farming community can achieve unified supply of feed, unified prevention,unified mechanical milking, but the level of feeding is still low, the promotion of technologyis still difficult, and the quality and production of raw milk is still low. And the status of thefarmers has not been changed fundamentally, the farmers only accept the pricing of dairyenterprises passively, and dairy enterprises don’t supply higher prices for better quality.Presently, based the price of raw milk, the proportion of detection cost is high, according torelevant person of a dairy enterprise, testing costs will account for1%~2%in3.4yuan per kilogram. And China’s raw milk quality standard is the “lowest in the world”, but the qualityof raw milk also needs high cost of detection to ensure under this standard, so this model willnot go on for long.In this paper, through the model of dynamic evolution game, we found as the degree ofthe supply chain improved, the quality of raw milk will be improved also, and combine thestatus of dairy industry in Shijiazhuang. In conclusion, Shijiazhuang should develop dairycooperatives and personal scale pasture. And based on the field research, this paper commentsthe situation and problems of dairy cooperatives and personal scale pasture. Through thesurvey, we found dairy cooperatives have institutional arrangements, governance structureand earnings distribution system, but have not really implemented. It has no essentialdifference with farming community, and the quality of raw milk is at a low level. The rationalof dairy farmers is individual rational,when they must cooperate,they can not avoidappearing opportunistic tendencies，that is free-riding behavior, so the construction ofendogenous dairy cooperatives is difficult, and the exogenous dairy cooperatives cannot trulyrepresent the welfare of dairy farmers. Therefore, it is an important responsibility for thegovernment to coordinate the core members’ interests and common members’ interests ofexogenous dairy cooperatives to ensure the dairy industry sustained and healthy development.In the objective, personal scale pasture not only can improve the degree of dairy farming’sorganization, scale and standardization, but also can control the disease and environmentthrough popularization of science and technology, and guarantee the quality and safety of rawmilk; And this mode is the ideal mode of development for large breed family in the subjective.But in view of the current situation for the small scale of farming, there still has a long way togo for the implementation of personal scale pasture model.At the end of the paper, putting forward practice suggestions for changing farmingcommunity into cooperatives and personal scale pasture:1.Strengthening governmentsupervision to protect the legitimate rights and interests of dairy farmers;2. Strengtheninggovernment support to transform farming community to personal scale pasture;3.Implementing seed subsidy policy and agricultural land preferential policy;4.Expanding thescope of the insurance for dairy cows and the government should implement the subsidypolicy;5.Setting up the third party testing institutions to ensure the” higher price of better quality” policy can be implemented;6.Strengthening technical training and guidance;7.Personal scale pasture should strengthen the horizontal integration, and establish dairycooperatives to improve the market competitiveness.