Study On Evolution And Optimization Of Raw Milk Production Mode In China Based On The Contractual Relationship

Dairy industry is one of the important pillar industries in China’s national economy. Since reformand opening-up, the total output of milk and dairy had continuously increased. Dairy industry graduallybecame a focus in agricultural development, played an increasingly significant role in some aspects,such as promoting agricultural structure adjustment, increasing the income of farmers, expandingdomestic demand, stimulating consumption and improving the national physical quality. For Chinesemodern dairy industry started late, from a lower starting point， especially in production of raw milk,because of scattered breeding mode, which brought about inefficiency, slow output growth, and lessquality of dairy products, result in tremendous pressure to dairy processing enterprises. With theproblems above, it is a significant responsibility to study on China’s dairy industry, analysise productionmodes of raw milk, structure of benefits allotment of the interest subjects, then find out the deep-rootedcontradictions and problems, optimize diary industrial structure to keep the industry developing rapidly,healthy, persistently in China.This paper was based on Contract Theory and Game Theory, adopted many research methods, suchas qualitative analysis and comparative analysis, analysised the whole evolution process of raw milkproduce mode, redefined and differentiated the modes of raw milk production through studying oncontractual relationship between benefit subjects and the basis of previous research. The four modes arescattered breeding mode, milk station mode, small regional breeding mode and pasture moede. Thepaper also made an analysis on evolution mechanism of raw milk production. In core of the paper, weanalysised possibilities occurring when benefit subjects playing game, made sure of stability andevolutived direction on raw milk production modes. Finally we inquired into optimization objective andmethods for China’s raw milk production, raised measure of safeguard for optimizing raw milkproduction mode.The results of the study showed that at present in raw production several modes are co-existenceand co-develop, but scattered breeding mode, milk station constitutes a large proportion, which prevententerprising economies of scale, guaranteeing quality and output of raw milk, The lag of productionmode also caused grow speed of raw milk production falling behind process speed of diary enterprises,so that unable to meet the rapid growth of diary demand for consumption. This paper proposes to selecta relatively stable mode which correspond with Chinese actual conditions, to identify a dominant development mode that can develop with other production modes, the paper also provide a reference forraw milk production mode choice and future development in China. The optimization for China’s rawmilk production mode had important realistic meaning for guaranteeing the quantity and quality of rawmilk production, further improving the income of the farmers, promoting the rapid and efficientdevelopment of the rural economy.