Research On Egg "Insurance + Futures" Price Risk Management Model Of The LK Poultry Company

As a fundamental industry for China's economic development,agriculture plays a vital supporting role in our economy.Since ancient times,natural risks and market risks have coexisted in agricultural production.With the continuous deepening of China's supply-side structural reform,we emphasize the decisive role of market mechanisms in the allocation of agricultural resources.In the context of globalized trade,affected by the international transmission mechanism,market risks have gradually been transformed into risks that should be mainly avoided in order to protect farmers' income.Therefore,carrying out efficient and reasonable agricultural product price risk management has become the primary task for developing agriculture and solving the "three rural issues".According to the characteristics of national conditions in different periods of time,China has formulated and implemented a variety of agricultural product price risk management measures,starting from different market service entities.Such as the measures which the futures market serves agriculture alone,crop options to prevent risks,the Minimum Procurement Price(MPP)policy and the target price subsidy policy which are sponsored by the government,the crop price insurance.These are mature management systems that have been practiced for a long time since the reform and opening up,but after long-term practice and the continuous evolution of the market,these management measures have more or less shown some system disadvantages,which cannot meet the needs of existing agricultural product markets for price risk control.The innovative "insurance + futures" model that has emerged in recent years has not yet been used on a large scale,but it has shown some advantages.Therefore,this article intends to demonstrate,through the form of specific cases,whether the "insurance + futures" model is currently the most advantageous agricultural product price risk management model and provide a theoretical basis for the continuous improvement of China's agricultural mechanism.In order to increase the persuasive power of the research,this article adopts a case analysis method,through exploring the operation mechanism of specific egg "insurance + futures" cases,the income of each entity and the risk management effect achieved,and in-depth analysis of the flexibility of the model operation It highlights the comparative advantages of the “insurance + futures” model and other agricultural product price risk management models,summarizes the limitations of the model at the current stage,and puts forward reasonable opinions to provide a theoretical basis for the promotion and improvement of this innovative model.