A Study On The International Pricing Status And Its Effects Of Chinese Grain Industry

The importance of food security for China is self-evident, the remarkable achievements of China’s grain production is also obvious. However, the economic development of China and the improvement of the living standards make China’s grain demand continue to grow rigidly, the supply and demand of food will be in a tight balance for a long time.Grain production in China ranked the fore-front of the world, but this does not take China a favorable position in the international market, the increasing openness of the Chinese market just give multinational grain merchants with an opportunity, once made China grain food industry mired in unsafe crisis.Due to the undevelopment of futures market in China and other supporting systems, making China on food prices autonomy only in domestic trade, once the convergence with the international market, pricing power will fall in the hands of others. This paper is just based on the lack of pricing right in Chinese grain expansion and analysis of the related problems. The main purpose is to objectively evaluate the international status of China in terms of grain pricing, based on the analysis of the causes and the impact, and put forward some suggestions.In the introduction part of this paper, the author proposed the research significance of this research from the Chinese goods in the international market encounter various strange phenomena that Chinese food is also faced with lack of pricing right and the low status. In the part of literature review in Chapter 2, the author pointed out that the existed literatures didn’t have a deep study on grain market power and pricing formation mechanism and impact taken.In the 3rd chapter, the characteristics of the development of the global food industry are discussed, and the international status of China’s grain production is measured. The paper argues that China’s grain production in the world occupies an important position, but compared with the United States and other countries, there is still a big gap, which is mainly reflected in China’s net imports of grain continuously increases and grain trade prices are in a bad situation. The major exporting countries occupy a monopoly position in the international market of major food products, and have certain advantages in pricing power and dynamic price ratio. The pricing power of major food products in China is very low, and the dynamic price ratio either, reflecting the price weakness of China in the global food trade. In addition, China’s lack of influence on the international grain price, also exists the lack of market power even if the large volume of trade, which verify the grain trade "big effect" does not exist, come to the conclusion of Chinese food in the international pricing of low status. The paper also found that the major grain exporting countries have market power and a significant impact on international prices, but food importing countries basically does not exist market power, the development of the food industry is still relatively backward in developing countries.In Chapter 4, the paper analyzed the international grain price formation mechanism and main influence factors, concluded that the grain pricing competition exists not only in the aspect of the grain trade, also in the game of national comprehensive strength, the competition of related and supporting industries. United States and other developed countries have a huge advantage. This study found the supply and demand of grain and macro-economic development is the basic factors that the affect the food prices in the international market, but the role of these basic factors is weaken after added in the exchange rate of the dollar. In addition, China’s per capita income growth is also one of the reasons for the international food prices.In the 5th chapter, the reasons for China’s grain pricing low status and on China’s impact is analyzed and validated. External factors mainly on the grain trade monopoly in developed countries and transnational capital strategic manipulation of the global industrial chain, but fundamental reason is cost of grain production in China, grain processing enterprises and domestic related and supporting industry of disadvantage, in the undevelopment in futures markets and the absence of the function of relevant government agencies. This paper points out that this likely influenced by trade, finance and investment way have an impact on China, the conclusion shows China international grain price low status of food security have negative effects, mainly manifests for the deepening and the food inventory consumption than the unreasonable dependence on the international market, food expenditure of Chinese residents has also increased. This paper argues that there is a manifestation of China "s grain international pricing loss of status. In the study of food producers found that international food prices rose, the leading role of the domestic producer price is very weak, and the leading role of the domestic prices of the means of production is obvious, international grain price fluctuation on food producers in China produced adverse effects. In the end of this chapter, two cases are further demonstrated.Finally, the paper puts forward the suggestion that we should improve the domestic agricultural industry chain, implement enterprise alliance and draw on the experience of the developed countries, and gradually improve the international pricing status of China’s grain industry.