The Transaction Costs Analysis Of The Farmers’ Marketing Channel Selection

In recent years, China’s agricultural markets’infrastructure drop behind, level of the market is low, these probloms make the relationship between farmers and market more contradiction, and be the restricting factor to impact the circulation of agricultural markets and the development of agricultural economy. How to improve the circulation methods of agricultural, is of great significance to the protection of the farmers’ interest and the development of agricultural economy. Transaction costs come from the process of agricultural products sales, higher transaction costs hinder the farmers enter into the product market and hurt the benefit of farmers. The different sales channels have different transaction costs, so the impact on farmers is different, so it is more workable to analyze the agricultural products’ circulation methods from the angle of transaction costs. And compared to other agricultural products, grapes is seasonal,the grapes market cycle is concentration, retain freshness is not easy, perishable vulnerability, transport and storage need high technical requirements, and grapes on the market do not have a standardized and uniform grading standards, these characteristic result in the farmers be to the lower prices or corporate pressure level by the buyers and take on more transaction costs. So it has representative to make the grape growers as the transaction cost study object.The article uses the Tobit model to analyze the influence of transaction costs to the grape growers’marketing channel selection, based on the transaction costs theory and the survey data from grape growers of Changxing County. The result shows that:(1) The negotiation cost and supervision of transaction costs have more significant impact on the wholesale market, retail market and dealer market; (2) The implicit transaction costs have more significant impact on the sales channels’selection than the external transaction costs; (3) The impact factors of enterprises sales channels are very different than other three channels; (4) The variable of the farmers’basic situation in the selection of sales channels have a certain but not important influence; (5) The local government support the grape industry’s sales cycle light and the cooperation organization is low; (6) The information of Supply-side and demand-side is not totally same,grape quality rating is not standardized.In order to improve the status of farmers’agricultural products circulation, ease the contradiction between small farmers and large markets, reduce the transaction costs which farmers enter into the market, the article presents the following recommendations:(1) It needs to strengthen the links between farmers and customer, to improve the farmers economic gains; (2) It needs to manage the grape market trading program, and create fair and orderly trading environment; (3)It needs to strengthen to build the cooperation organization and promote the traditional sales channels shift to the modernization sales channels; (4)It needs to perfect the management of the wholesale market, build the agricultural infrastructure; (5)It needs to build the information platform to promote the communication of supply and demand sides; (6)It needs to attract the young groups to join the grape industry to provide fresh blood for the industry.