Industrial Organization And Enterprise's Conduct Of Animal Husbandry Industry

Since reform and opening-up, the animal husbandry has made great achievement in our country, its status and function in national economy has been obviously strengthened, and its growth potential is still very great. After joining WTO, the traditional mode of production of the animal husbandry of our country is difficult to suit the double pressure from both domestic and international, and the market performance of the whole industry is reduced greatly. According to the theory of the industrial organization, the basic reason lies in the present unreasonable market structure of the animal husbandry and the improper enterprise's conduct caused from this. So, it is very important and directive significance for the development of the animal husbandry to study the characteristic of the industrial organization and enterprise's behavior.With the application of the theory of the industrial organization, the thesis attempts to analyse the problem of the present industrial organization structure, enterprise conduct and market performance of the animal husbandry in order to bring up the reasonable industrial organization structure, industrial organization policies and the correlative management strategies which fit to the development of the anminal husbandry of our country and can produce good market performance. According the different reseach contents and taking the world economy integration and market economy as the background, the thesis uses the theories of industrial orgnazition, supply and demand, price elasticity, combines normative analysis and positive analysis together, adopts respectively the methods such as case analysis, comparison analysis, qualitative analysis and quantitative analysis to study the present industrial organization, enterprise conduct and market performance. According to the theory that industry organization structure decides enterprise's conduct, enterprise's conduct decides market performance, and market performance and enterprise's conduct affect in reverse the industrial organization structure, the thesis studies the interrelation and infection among the market structure, enterprise's conduct and market performance of the animal husbandry.The following are the main points of the thesis.1. The basic theory of the industrial organization and enterprise's conduct. In order to study the industrial organization and enterprise's conduct of the animal husbandy, it is necessary to review deeply. According to the study contents, the thesis reviews to the question the research field, research means and framework of the theory of industrial organization, the various factors composing the market structure (Economies of Scale, Barriers to Entry and Exit and Market Concentration), the integration strategy of the enterprise (Horizontal Integration, Vertical Integration, Conglomerate Integration, the ways to carry them out and the new development of the integration strategy: Supply Chain Management and Virtual Organization), the industrial organization polices (the directed target, the relation between the industrial characteristic and the industrial organization policy and the basic points of the industrial organization policy). The segment establishes the theoretical foundation for the whole study.2. The institution of the animal huabandry of our country. The thesis regards the broadly-defined animal husbandry as the research object. The relation between the animal husbandry and agriculture is dialectical unity. The animal husbandry has its unique characteristics, especially being apt to produce the intense price fluctuation. The development of the animal husbandry concerns human survival and quality of living, so it occupies extremely important position in national economy. After reform and opening-up, the animal husbandry of our country is developed rapidly, especially after the 14th National Congress of the Party, the animal husbandry is changed from extensive operation to intensive operation progressively, the type of the animal husbandry industrialization operation is developed quickly, and the development of the animal husbandry has entered the new stage. At this stage, the primary tasks of the development of the animal husbandry are to raise the quality of the livestock produce, optimize the production structure, improve the ecological environment, and increase peasant's income. At present, the market structure of the animal husbandry of our country approaches the perfect competition, which is produced by its industrial characteristics such as the numerous producers, the small scale, the low degree of the industrial concentration, the homogeneity products, the low Barriers to Entry with the high Barriers to Exit and so on. Under this market structure, the market competition is great intense, and the resources circulation among the government, market and enterprise is blocked. With the"buyer market" formed in the animal husbandry, the drawback of the market structure exposes more and more obviously, mainly shown as: the quality of the livestock products is droped, the price competition is worsen, the peasant income is difficult to increase, the efficiency of the resources allocation and utilization of the whole industry is reduced, and the development of the industry is slow. Use the advanced experience of industrial organization institution of the animal husbandry of developed countries for reference, the thesis advances that it is necessary to innovate the industrial organization institution of the animal husbandry through strengthening the socialized service, setting up the complex market structure mainly composed of producers on the medium scale, develop the industrial integration especial the horizontally integration, etc. in order to realize the Economies of Scale of the animal husbandry, promote the technological progress, standardize the market competition order, improve resources allocation and utilization efficiency, and promote the animal husbandry to develop for a long time. This thesis has emphasized especially the function served as bridge of the leading enterprises to link up the resources circulation among the government, market and animal husbandry enterprise.3. Animal husbandary enterprise's (producer's) conduct: integration strategy.Animal husbandry enterprises (producers) are micro foundation or organization of the animal husbandry industry. There is the large family of specialized production, the family pasture, the animal farm, such types as enterprise of share cooperation (company), enterprise group, professional association, the professional cooperative economic organization, the professional market, etc.. The integration strategy of animal husbandry enterprises (producers) includes mainly Vertical Integration and Horizontal Integration. Some loose modes of Vertical Integration may be transformed into intensive modes, and Horizontal Integration Strategy has more extensive adaptability and vitality in the vast agricultural district of our country especially those undeveloped areas, and should become the application focal point of the integration strategy of enterprise of animal husbandry (producers) of our country. According to the different investors, the implementation modes of animal husbandry enterprises' (producers') integration strategy are mainly as follows: Company (Enterprises, Pasture) + Producers, Cooperative Economic Organization + Producers, the Professional Wholesale Market + Producers, Industry-University-Research Cooperation + Producers, Animal Business Company(Group), the mode drived by the ModernSynthetically Developed Zone and the Enterprise Group of animal husbandry. The thesis gives a successful case of integration strategy of animal husbandry enterprises (producers): Wen Mode in Guangdong. The Supply Chain Management and Virtual Organization are the new developments of the integration strategy of animal husbandry enterprises (producers). Considering its own practicality, animal husbandry enterprises should change its ideas, recombinate the procedure of business and institution framework, strengthen cooperation and fiduciary construction, strengthen the construction of the information technology, set up accurate, fast and high-efficient logistics system in order to promote Supply Chain Management and Virtual Organizaiton of the animal husbandry.4. The industry management of animal husbandary: Trade Association. The trade association is an important organizational form of the non-governmental industry management. In market economy, the foundation and development of the trade association not only meet the demand of the animal husbandry for its own economic benefits, but can further improve the inherent coordinating and controlling mechanism of the industry economic system operation, and reduce the direct government intervention to the economic activities of animal husbandry producers. The trade association of the animal husbandry is the nonprofit pbulic organiziton with status of coporation that participated in voluntarily by producers with concomitant goal, set up through legal procedure, and engaged in social public activity to promote society progress, maintain members' legitimate rights and meet their requirements for the proper economic service. Its main task is to set up and fulfil the functions of bidirectional service, coordination, promotion, and safeguards. The trade association of the animal husbandry can promote the forming and completion of the management organization and mechanism, make the whole national economy develop in harmony among the produces and industries, establish the proper relation between the country and producers, and form the united market of export and foreign economic technological cooperation. The institution framework of the trade association of the animal husbandry mainly consists of members (or members representative) conference, council, president (or deputy president), directors and managing directors, and general secretary. At present, the main problems exist in the trade association of the animal husbandry of our country are those such as the economic disequilibrium development and the unfavorable ideas have influenced the development of trade association, the organization is imperfect and personnel structure is unreasonable, the trade association is divorced from enterprises and basic organization and soon. It should be promoted through such measures as thought construction, organization building, institution improvement, etc..5. The industrial organization policies of the animal husbandry. The market structure close to the perfect competition of the animal husbandry hase caused avoidlessly all sorts of "Market Failure", because of Limited Retionality, Asymmetry Information, Externality etc.. It is impossible to only rely on the market mechanism to correct "Market Failure", which needs the government to play a positive role and make the industrial organization policies favorable to the healthy and steady development of the animal husbandry. Compared with the planned economy, there are a lot of conditions of government intervention have changed under the market economy, for example, the "seller's market" has turned to the "buyer's market", enterprises are changing into the micro decision-maker from the passive order-taker, the national economy is developing from publicly-owned economy accounting for leading status into non-public economy becoming the more important component, the opening-up is being from part to all round, the means of government to interve economy is changing from the single plan to many kinds of macroscopical means. At the same time, the animal husbandry has its own production and consumption characteristic in addition. When making industrial organization policies of the animal husbandry, it is necessary for the government to do the followings. Strengthen the leadership and overall planning, get the coordination well; insist the policy sloping to the animal husbandry; optimize and promote the industrial arrangement and structure; foster and perfect the market system of the animal husbandry; construct the livestock produce security (in quality) system; change the growth way and strengthen the processing ability and the potential market; set up and amplify the science and education system, the socialization service system, and the information network service system; create the fair competion conditions, and pay attention to the environment protection to realize the sustainable development of the animal husbandry.