The Research On The Production Model Of Dairy Households In The Modernization Process Of Dairy Industry

There are several models come out in our dairy industry: state cattle farm, households dairy production, ranch dairy production and dairy association etc, these models played different roles in different times. Among these models, households dairy production played a very important role during the rapid development process of China dairy industry.With the change from extensive form to efficiency form in the course of China diary industry’s modernization, households dairy production is regarded as outmoded dairy production model which does not fit dairy modernization’s development, as it has management problem because of low livestock quantity, low safety reliability rate for raw milk’s quality because of behindhand breeding management, rural environment degradation because of bad dairy production environment, etc.Government adjusted his development ideas and vigorously advocated scale breeding industry. In addition, because the stable cooperative relationship between the dairy production part and the dairy processing part have not been formed, the dairy enterprises forced down the price when they purchase raw milk, the households which is decentralized is in weak position in the whole dairy industry chain, so they don’t have strong bargain power. A lot of households have to quit dairy industry under the outside compellent forces which are coming from government and dairy enterprises. Households dairy production model have no any advantage and efficiency or not, It should be eliminated in the process of China diary industry’s modernization or not.By telling about the past history of dairy industry development in China, this paper makes clear the China dairy development history and summarizes the law of our country’s dairy industry development, By analyzing the dairy production model in developed countries, try to find out the nature of modern dairy industry, and supply a standard which is available for reference for our dairy industry development and take example.According to economic analysis on households dairy production model, we found it belongs to smll scale production model; Using survey data to analysis househould dairy production model empirically, understand farmer households dairy production model’s production efficiency, advantage and disadvantage, the dilemma faced, find out the reality way out for households dairy production model by analyzing the typical dairy production cooperation.The paper has several conclusions as below:1. In course of Chinese dairy industry development history, households dairy production model plays a very important role. The dairy enterprises’ strong demand pull, the households’ strong becoming rich motivation and the local government’s positive support, all these factors promote blooming development of households dairy production model, but this model is undergoing severe test and question during the process of dairy modernization which is prompted by government and dairy enterprises.2. According to the dairy development experience of foreign dairy developed countries, household farm dairy production model is the main model of dairy production, so we can summarize the modern dairy characters and revelation for our country’s developing modern dairy industry by study the development experiences of foreign household farm dairy production model, they mainly are: Continuously raising management and technological standards, the proper policy for dairy industry, the effective cooperative organization, the perfect social service system and selecting cow varieties and feed according to local conditions, etc.3. Built production model of households dairy production model by the theory of population migration model, theory of firm and equilibrium price theory etc, by the economic analysis on Chinese households dairy production, we can find household dairy production model is a small scale economy, the model explains the reasonability of why the households dairy production model will still exist during a period in the future when the capital accumulation does not reach a certain extent. The model also reveals why households dairy production model can maintain under low price of raw milk.4. After field survey on 256 households which are in Huhhot region and Wulanchabu region in Inner Mongolia, we can found all these households engage in dairy production for a long time, adopt dairy production and planting combined together, financial capacity is bad, cow breeding scale is small etc. By utilizing the model of production function, we can find their scale reward is in a state of decline under existing technology and management level, that is, household management of production has reached the optimum benefit under current technical management level, furthermore, limited by householder’s available resource, it is impossible to introduce new production factors only by householder’s individual ability. But no matter from the technical or management level, this households dairy production model has a large gap compared with foreign dairy developed countries.5. The dairy industry in China is facing fierce international competition. As household dairy industry production model is the model which can maintain milk in low price, it is a reasonable consideration that let the householders keep working in dairy production. It needs time to transit farmer households dairy production model to household farm dairy production model. By analysis of a case in Huhhot, explain that in this period we should establish a new cooperative model, which is cooperative ranch, it can transit households dairy production model to modern household farm dairy production model step by step and in the meanwhile it can ensure household farm dairy production model can be survived and developing.Although household farm dairy production model played a very important role, has a couple of advantages, it will weeded out by the market if we don’t reform it. Large scale ranch also has disadvantages such as bigger investment, high risk, high cost etc. cooperative ranch can not only supply the chance that households still stay in dairy production field, but also improve households’ technical standard and management skill, has more advantage compared with household farm dairy production model, it is the realistic route for households to continue their cow breeding.So we should follow objective laws of dairy industry development, reform the model of households dairy production model, the government and the dairy enterprises should supply conditions to encourage and support the development of cooperative ranch, in order get ready to transit to household farm.