Research On The Problem Of Chinese Diary Industry And Supervision

China's dairy industry has developed into one of the most important pillar industry of the national economy. Development of China's dairy industry has become one of the important ways of solving the problem of "Farmer Problem, Rural Problem and Farmer Agriculture". However, since 2004, a series of serious events harming consumer's health and life such as "Big Head Doll Event" and "Melamine Event" have been continuously torturing d China's dairy industry. Therefore, China's dairy industry has to be reformed. To conduct research on Chinese dairy industry structure, it is imminent to analyze the structural characteristics of the Chinese dairy industrial chain and interest-distribution structures between stakeholders, to look for the deep-level contradictions and problems impacting the healthy and sustainable development of the Chinese dairy industry, to optimize industrial structure and to promote Chinese dairy supervision level.On the basis of long-term thoughts on the practical problems and absorbing the research results from home and abroad, this study explored to analyze the structural characteristics the dairy industry in China and made a comprehensive analysis of the games between different stakeholders in the dairy industry chain by using the industrial structure and industrial development theory, the industry supervision theory and game theory. By using the Naravi model to construct quantitative analysis model, this study made an empirical analysis of the factors affecting raw milk supply which are the key factors of the dairy industry in China.These conclusions are:the main factors impacting the healthy, sustainable development of the dairy industry in China are as follows:the unreasonable industrial structure of the dairy industry in China and the prominent structural contradiction. It is mainly embodied in three aspects:the unbalanced interest distributions between stakeholders of the industry chain, the structural contradictions between the rapid growth of processing capacity and the lagging development of the raw milk, the relationship between the industry development and regulation. Therefore, regulatory mechanism of the dairy industry in china should be reformed and improved. It should be done as follows:(1) to establish price protection mechanism of raw milk and to improve the interest-distribution mechanism of dairy industry chain (2) to establish unified milk product safety inspection standard system.The main innovation points as follows:(1) the research initially used Naravi Model to make an empirical analysis of the production stage of the raw milk related to the interests of the milk farmers. The research viewpoint was transferred from the concerns about the market demand of the dairy products to the impact of the raw milk supply factors on the market fluctuations. (2) The research made a systematic analysis of the relationship between the dairy industry regulator and the existed interest groups of the industry and its impact on the national dairy regulatory policies by applying Becker Model. (3) The research made a comprehensive analysis of the games between different stakeholders of the dairy industry chain (between suppliers and processing enterprises of the raw milk, between processing enterprises, between processing enterprises and government regulatory bodies) (4) The research made a tentative division of Chinese dairy supervision development stage and put forward to the preliminary design of the Chinese dairy supervision mechanism.