Study Of Balance Between Supply And Demand On Vegetable In China

Thirty years of reform and opening up, vegetable industry has rapidly developed inChina, with continuously increasing in production scale, supply quantity, active markettransaction. The supply quantity supporting for needs of domestic market and export volumewere ranked first in the world, which have greatly contributed to agricultural synergism,increased income for farmers, expanded export and social stability. However, due to impactsof various factors including policy, market, science and technology etc., the productionascpect of vegetable industry in China has been mostly composed of individual operation byfarmers, which are charaterized by small production scale, low standardizaiton, low gradeproducts and few products varieties. In the aspect of vegetable processing, a severedisconnection between processing and market sale, and a low utilization rate for processinghas been existed, also it has not been completely realized yet in one-step production under theperspective of supply chain. In the aspect of consumption, information block betweenproduction and marketing has led to fluctuation in vegetable price, which may not only casuea tough problem performing in "dish cheap is hurt farming" and "unbearable high price forconsumer", but also result in another difficulty involving in a conflict in ample vegetablesupply against excessive situation on season, veriety, region and structure. In aspect of importand export, for one thing, the export advantage of agricultural products of our country hasbeen weaken by sound market system and varied green trade barriers of developed country,on the other hand, owing to lack of self-discipline in vegetable production or processingenterprises who make disorderly competition by depreciation between each other, resulting inreduction of industrial benefits. Thus it can be seen, although great achievements have beenmade in the thirty years of reform and opening up, many problems have still been existed insome aspects including production, consumption, import and export, limiting the balance ofsupply and demand. On the basis of considerations described above, this dissertation entitled"Study of balance between supply and demand on vegetable in China" will address the basicstatus of China's vegetable including supply, consumption, import and export trade underclose and opening conditions, so as to discuss whether there is a balance existed betweensupply and demand, as well as forecast the balance of supply and demand in the future. This study analyses the vegetables production present situation and summarizes the maingrowing area of vegetables in our country.beginning from the needs of the people forvegetables.Vegetables being an irreplaceable non-staple food in people's daily life, averageper capita consumption of fresh-eat vegetables by urban and rural residents will grow in thestability. The chief reason for this is the continuous growth of our population leads to the therapid growth of the domestic vegetables consumption. In general, in our foreign trade ourcountry export vegetables more than we import and the comparative advantage of ourvegetables export has showed tendency to descend after our accession to the World TradeOrganization (WTO). The reason lies in our unsuccessful industrial reorganization after theaccess to WTO, which leads to the domestic products with comparative advantages beforelosing their advantages gradually and completely in the fierce international competition,andthe trade barrier and the intensified trade protection of developed countries further hinder theexport of vegetables in our country.secondly,this article analyzes the supply-demandequilibrium under close and opening-up situations.Under the close condition, the supply-demand equilibrium has experienced evolutionthree times with the changes in the progress of production of vegetables in our country.butnow, influenced by the continuous promotion of productivity, stimulation of economicbenefits, technology innovation and the regulation through the market, the growth rate ofvegetables supply is higher than that of vegetables demand in our country, and the imbalancedsupply and demand and the structural,seasonal and regional surplus in which are highlighted.During the1990to2009, supply of our vegetables exceeded demand,and thesuperfluous supply of our vegetables show an increasing tendency. This paper forecasts thatthe supply of vegetables will exceed the demand as before in our country between2010and2020, and the oversupply of our vegetables will reach426,868,900tons by2020. It is theleading cause of the increasing supply surplus that the production of vegetables will increaseyear by year and will rise rapidly,and the demand on fresh-eat vegetables taking a great partof aggregate demand will increase but slower than the supply of which before2016,and theaggregate demand on fresh-eat vegetables will increase slowly between2017and2020,theincrease of the demand on other vegetables will be limited,too,all this will finally result in theunbalance of supply and demand of our vegetables.Under the opening up situation, the supply and demand of vegetables are balancedbasically now and there is also a demand surplus in our country as the domestic supplysurplus can be assimilated by the strong demand in the world market.the supply and demandof vegetables were in balance position basically in our country between1990and2009,although in individual years supply fell short of demand,the insufficiency of supply and demand of vegetables was very small.This article forecasts that influenced by the continuousimprovement of the domestic vegetable productions, stimulation of international competitionand trade protectionism getting worse, the imbalanced supply and demand and the supplysurplus of vegetables will become more prominent in our country year by year,and there willbe a surplus of vegetables of309,743,200tons by2020, Which will bring a series of negativeeffect on the development of vegetable industry in our country.Therefore, we should adjustsupply and demand of our vegetables by way of expanding and creating consumption demandon vegetables, ensuring a stable supply of vegetables and a transfer of vegetables surplus,promoting export and adjusting import.In the aspects of supply, demand and trading of vegetables, we forward related policyadvice about how to maintain the equilibrium of supply and demand in vegetable market, soas to scientifically allocate vegetables production in China, and ensure the stable marketsupply around the year, expand the foreign trade of vegetable products and enhance theinternational market competition of vegetables in China. The study will provide a soundtheoretical basis for realizing income increase of farmer, optimal allocation of resources,supply connection and government macro economic policy making, as well as will providethe decision making basis for developing vegetable industry and enhancing internationalcompetitiveness of vegetable products in China.