Mechanism Of Typical Market Fresh Apple Price Change

Fresh apple is one of Chinese Government strongly-supporting agricultural products. Toensure the healthy development of China’s apple industry, has a dual significance forimproving farmers’ incomes and improve consumer’s living standards. With twenty years ofindustrial development and optimization, farmers’ incomes have achieved great success.However, in recent years, with the apple price increasing, Chinese residents’ living levels areimproved limited.To solve these problems, the paper uses price theory, location theory, Porter’s Five ForceModel and related analysis. Based on the view of Micro-industry, the paper analysesmechanism of the interaction between various stakeholders in the apple industry, explores theinternal mechanism of the fresh apples price changes, and makes feasible suggestions.Specifically, the paper will focus on three issues:(1) Characteristics of the China’s fresh appleindustry chain;(2) Determination of China’s urban residents’ fresh apple consumptionbehaviors;(3) Analysis of mechanism of fresh apple price changes.This paper contains three parts. The main content of each part is as follows:Part1briefly introduces theoretical basis, including chapter1and chapter2. It containsthe research background, the purpose and significance, the main research contents, theresearch method and the framework, and related theories such as price theory, location theoryand industrial chain theory.Part2, which includes Chapters3and4, is the analysis of the interaction between appleindustry stakeholders and consumer bargaining power. Chapter3focuses on the analysis ofthe apple growers, cooperatives, storages and supermarkets. The results show that the appleindustry value chain value distribution was inverted V-shaped. Chapter4, using the BinaryLogit Model, analyses field survey data of Beijing, Shanghai, Guangzhou, Xi’an Applemarkets in2012. The results show that urban fresh apple’s consumer market will become fullycompetitive market in the long run.Part3is a briefly summary, including chapter5. A research conclusion is drawn from the results of theoretical and empirical study. According to the conclusions, we propose to furtherimprove fresh apple’s consumer market and to promote fresh apple price stability in China.