Study On The Structure-Conduct-Performance Of The Dairy Industry In China

With the rapid development of national economy, consumers' food structure changed greatly. They care more about health and nutrition. The nutritional value of milk has been recognized gradually. After the rapid growth of consumption and production, dairy industry achieved unconventional development.Dairy industry is an integrated system, which was consisted of three main chains including dairy food consumption, dairying and raw milk production. Peasant household, enterprise, consumer, government and institute are the consisted factor. There are close association among them. But as the independent interest subject, there exist conflict between them.Based on industry organization theory, information economics and contract theory, this paper, which uses SCP paradigm, game method and case study, focuses on the structure and performance of dairy industry, especially deep-going study on the conduct of interest subjects. In order to demonstrate the development situation objectively, all these maybe uncover the relative factors that influence the diary industry development. The conclusion:1.There exist some consumption unbalance between city and countryside and different places. Income level, dairy product price and consumption habit are the main factors on dairy products consumption. With the time lapse, consumer improve the recognition to the dairy products, customer mentality and consumer behavior has changed.2. Owing to the enterprise compete for the raw milk and the scale effect of big enterprise, the access barrier was raised. Dairy manufacturing industry has the structure of monopolistic competition.But in partial market ,there exist the structure of oligopoly.3.The market structure and property rights structure promote the better performance of dairy manufacturing industry. The concentration ratio has more influence on the profit rate than the scale. State-owned property rights has little side-effect on the profit rate, concentration ratio of industry is the result of efficient competition. There exists enough market competition in dairy manufacturing industry.4.Because of input-output is inefficiency, which is limited by the low concentration ratio and expenditure situation, enterprise's technological innovation motivation is not enough. This leads to research and development expenditures is poor, the width and deepness of products development is not enough. The enterprise pay more attention to consumer's brand loyalty and capturing market share.5.By price competition, non-price competition (such as advertising and merger) and standardizing disorderly competition, a new industry organization will be created which is characterized by dominated by oligopoly, large, medium and small-sized enterprises co-exist.6.Transnational company's transplacement competition and cooperative competition changed domestic competitive situation, which pull the advancement of industry performance. Because of the specialty of dairy industry, when we compete and cooperate with the transnational company, we should avoid exchanging market and resource for capital and technology blindly.7.There exist big gap between dairying and dairy resource. So cut-throat competition for dairyresource happened. The china dairy resource sustained development road will be driven by perfecting and strict executive industry standard .establishing and improving the supervisory service system, implementing scale livestock breeding.