| Since the reform and opening up to the world, China’s dairy industry has made considerabledevelopment. The dairy products have become the fourth-largest necessities in people’s life after grain,meat and aquatic product. But frequent dairy products security incident has sounded the alarm for China’sdairy industry. From the “big head doll†powder in Fuyang and recycled milk of Bright to the melamineincident in2008, all these security incidents of dairy industry continued to impact on consumers’confidence. The deeper reason behind the quality and safety problems is that the interest subject in supplychains of dairy industry who has the favorable information uses the asymmetric information causing illegalact which is caused by the distorted benefit affiliating mechanism of dairy industry chain. The distributionof profits as the core of the benefit affiliating mechanism of industrial chain in dairy industry is reasonableor not, directly related to stability and sustainability of dairy industry chain in China. Reasonabledistribution of profits can not only effectively improve the production enthusiasm of the subject in eachlink of dairy industry, urge the milk farmers to increase their feeding levels and the dairy cattle raisingzone to standardize the operation, but also can decrease the frequency of adverse selection and moralhazard problems of milk farmers because of uneven profits distribution, so as to improve operatingefficiency of the whole dairy industry chain. So, analysing the dominating interest of all participants indairy industry chain is vital for the sustainable development of dairy.This paper using the doctrine of perpendicular market mechanism and price formation mechanism,and a theory of connection between business efficient and well-being distribution, basing on existedfindings, analyses pricing transmfer and benefit allocation in Chinese dairy chain.This paper also using the fresh milk purchase price and retail price as a cut-in-point, applies a VARmodel in econometrics, and ADF unit root test, cointegration test, Granger causality test, impulse responseanalysis and vector error correction model to make an empirical analysis on each link of dairy industrychain, and analyses the economic significance of statistical results. By analyzing, there is an asymmetryphenomenon among different interest subjects during price transmitting in dairy industry chain. For thefurther analysis of the causes of this phenomenon, it points out that the national policy and the marketstructure adjustment of milk industry chain are the main causes of price asymmetric transmission. And byanalyzing this reason, we draw a conclusion that the status of all interest subjects in dairy industry chain is still not equal, the price transmission in each link of dairy industry is still not smooth, and the interestdistribution mechanism needs to be further improved. Finally, this paper gives an advice that China’s dairyindustry should be improved from the aspects such as perfecting the price forming mechanism of freshmilk and profits distribution mechanism of dairy industry, and so on. |
