Research On Apple Industry Competitiveness Of Gansu Province

Gansu Province is one of the major apple producing provinces in China. By the end of the year 2014, the apple planting area reached 4.8 million mu in Gansu Province, annual production reached 3.2 million tons, value of output 16 billion Yuan, and planting area ranked second in the country. The apple industry has contributed greatly to the development of agriculture and rural economy, increased farmers’ income, and has become an important industry in agriculture in the Gansu Province. However, with the rapid development of other production areas and foreign important apple production industries also developing, some challenges in the development of apple industry in Gansu are gradually emerging. Lack of industrial competitiveness gave a certain degree of exposure. Promoting a healthy and sustainable development and enhancing competitiveness of the apple industry in Gansu Province is particularly important.In this paper, analyzing production status, processing status, consumption status and export of apple industry in Gansu Province, it is concluded that the apple industry in Gansu Province has a competitive power in the development of apple industry in China. It has a great development space and potential. Competitiveness can also be further enhanced using the SCP paradigm. The industrial organization of apple industry in Gansu Province was analyzed using the market structure, market behavior and market performance. A further analysis of apple industry competitiveness in Gansu Province from display, analysis and comprehensive comparative advantage indexes of three aspects. Upon the analysis of the display index, the market share of apple industry in Gansu Province is lower than other provinces in the country, but it shows an increasing trend year by year. While the resource endowment coefficient of apple industry in Gansu Province has been maintained at a level of more than 2, it has a high competitive advantage in the national apple production provinces.On analytical index, the sales price, production cost and cost benefit of apple in Gansu Province were analyzed and concluded that apple’s price is higher than the national average price of 0.88 Yuan / kg in Gansu Province, ranking after Shanxi province and Shandong province, placing third in the country. The cost of production in Gansu Province is higher than the national average cost of production and therefore doesn’t have a competitive advantage.On the cost-benefit aspect, the apple industry has a high production efficiency, however higher production costs makes the cost profit margin low resulting in a high input and high efficiency of production model in the apple industry in Gansu Province. The comprehensive comparative advantage of apple industry in Gansu Province was analyzed and concluded thatthe scale of comparative advantage index of the apple industry in Gansu Province is higher than the other six big apple production provinces, ranking first in the country and has a very high competitive advantage. While the efficiency advantage index ranked fifth making it lack comparative advantage. The comprehensive competitive advantage of apple industry in Gansu province is next to Shanxi province and Shaanxi province, ranking third and having a certain competitive advantage. An analysis made on the competitiveness of the apple industry in Gansu Province revealed that the apple industry in Gansu Province has a degree of competitiveness in the national apple industry, but there are still some challenges existing in the competitiveness of the apple industry in Gansu Province; including varieties of a single structure, low quality of fruit, low level of planting standardization, fruit brand-building publicity not enough,few farmers’ organizations and others.Put forward correspondence and suggestions based on these issues.