Causes Analysis And Countermeasures Of Speculation On Small-scale Agricultural Products In China

In China, a speculation boom in agricultural products appears in recent years causing widespread concern and affecting people’s lives. After the research and analysis of the emergence of speculation boom in small-scale agricultural products since 2009 in China, this paper analyzes the current status and causes of the speculation in small-scale agricultural product market. In addition, countermeasures are proposed on the basis of the supply modes adopted by distribution management centers at universities in Shanghai.First of all, the speculations on small-scale agricultural products have some common characteristics, namely:the sources of products are relatively concentrated; small amount of output; easy to store; little government intervention, not affected by national reserve policies. Secondly, the speculative behavior of small-scale agricultural products generally follows a similar pattern. The first is to fully grasp the market information and determine the object of speculation, while raising venture capital. The second is to hoard supply of small-scale agricultural products in circulation, and spread false news to confuse the market and to drive up the price of the speculated small-scale agricultural products. Finally, when the price of small-scale agricultural products increases, they will sell in large quantities, quite the market and make the gains. The impact of speculation is enormous, mainly affecting the interest of farmers in the upstream and the interest of consumers and socio-economy in the downstream.Through research and analysis, the causes of speculation on small-scale agricultural products in recent years can be roughly summarized as follows.1) Supply and Demand Factor The supply and demand of small-scale agricultural products is imbalanced.2) Monetary Factor The domestic money supply increases since 2008.3) Market and Government Regulatory Factor There are too many links in the agricultural production circulations, the market lacks entry standard and the information that speculators and the public receives is asymmetry. At the same time, the government and relevant departments do not provide enough supervision and guidance on speculative investment on small-scale agricultral products, which is manifested in the incomprehensive governmental supervision system and legal system, and inadequate supervision.4) Other Factors It is mainly the psychological factors of speculators and farmers and the influence of nature.Finally, based on the analysis of the main measures adopted by our government towards small-scale agricultrual products and on the analysis of the corresponding results, this paper proposes countermeasures by drawing on the supply modes of distribution management center of universities in Shanghai.