| In recent years, issues concerning agriculture, countryside, farmers have been put a high value on buy the government; and Document NO.1 of the Central Government just focused on the issue of food security, in 2015. As it is known that agriculture is the foundation of a country’s economy system; and the industry of crops seeds is the foundation of agriculture. Because crop seeds are the basic elements for agricultural production, and basically its quality affects the quality of farm produce and their processing products. Good crop seeds is important to the development of agricultural production. So they are naturally significant to food security. While wheat is one of the staple food for Chinese, it could influence the balance of the food provision and the quality of life. Henan Province is the biggest wheat producing area in China, with the largest amount of farm for wheat and biggest yield of wheat. Usually, the 27 million acres of wheat are planted, nearly one sixth of the total plant areas in the whole country; and 23 million tons wheat are harvested, accounts for more than a quarter of the total yield. Therefore it is fundamental for the economic growth and social development in Henan Province to guarantee the steady of wheat planting. Furthermore, it is concerning a lot about the food security in China. While the scale, structure, and quality of wheat production, all depend on the research, producing, and management of wheat seeds directly.In this article I will observe and analyze the wheat industry in Henan province, using the theory of structure-conduct-performance in industrial economics, i.e. SCP theory. Firstly, the industrial structure is analyzed from the basic three aspects of market concentration, product differentiation, and industrial barrier. Then the industrial conduct is analyzed from two aspects of pricing action and non-pricing action. Finally, the performance of wheat company is estimated. As for the industrial concentration, the wheat industry is rather scattered in Henan province, close to the perfectly competitive market. But there is already obvious product differentiation among all the enterprises. The competition is very intense. In order to win the market every firm make efforts to build competitive advantage through distinct actions, especially non-pricing actions. And the result is positive. After understand the relationship between the industrial structure, conduct and performance deeply, I give personal suggestions to the optimization of the wheat industry in Henan province, according to relative research in theory and explore in practice. |
