A Study On The International Competitiveness Of Mutton Sheep Industry In China

Globalization is the highlight and trend of world economic development. Mutton sheep industry is rising up rapidly in China, although this industry is still at its very beginning stage. The number of sheep and goats in stock and their slaughtering, and mutton production all have been ranking the first place in the world since the 1990s, and the share of mutton sheep output value among the whole livestock industry is also increasing. Mutton sheep production contributes a lot to food structure adjustment, food quality improvement, farmers' income increase, as well as restructuring our country's livestock production. As a branch of livestock industry, mutton sheep production has grown up as a prosperous industry in China.However, incompatible with the important status of mutton sheep production, China just amounts for a very small share of the international trade of mutton products, with a share of more and less than 1%. China's mutton sheep industry still has a long way to go before realizing its goal of globalization. Therefore, in the era of transformation from central planning to market-oriented economy, from extensive to intensive development mode and from tariff-protection policy to free and open trade environment, it is necessary and imperative to understand the current situation of sheep production and international trade, and factors influencing such situations;to examine comparative advantage of the available internal and external resources;to recognize national and international economic environment;to develop internal and outside potential markets, and to bring up policy suggestions on improving our sheep industry competitiveness.This dissertation will be categorized following six parts:In the first part, based on Michael E.Porter's organization international competition theory and international trade theories, the author will employ both qualitative and quantitative methods to construct the framework of analyzing international competitiveness of China mutton sheep industry, build up index system and find out major factors affecting international competitiveness of China mutton sheep industry.The second part describes domestic sheep production, consumption and trade situation and makes international comparisons, so as to evaluate market of China mutton sheep industry. The research finds out that sheep inventory and mutton production grows up steadily;output value of mutton sheep industry takes more share among meat industry;raising method is changing from extensively grazing on the pasture to intensive shed-raising;distribution of mutton sheep production is concentrating gradually from thepasture region to farming region;raising scale is expanding and a number of raising specialization organizations are appearing;market share of mutton is increasing, and there is still large domestic market potential;total and per capital mutton consumption are both rising rapidly.The third part measures the competitiveness of China mutton sheep industry and products. The results indicate: generally speaking, sheep products are equipped with lower competitiveness;however, goat and sheep meat has relatively higher competition ability as compared with other meat industries. So the huge internal consume market is still the target market for a very long time.In the fourth part, based on Michael E.Porter's diamond theory, the author systematically examines the international competitiveness of China mutton sheep industry, from the perspectives of sheep product costs and prices, quality and food safety, production inputs, relative industry as well as governmental functions. The results indicate: the factors except the price have been the major factors affecting international competitiveness;China's goat and sheep meat and living sheep has relatively higher price competition ability as compared with other meat industries;and the living goat has obvious quality competition ability;but the mutton sheep industry still needs the governments' protection, because it is still a weak industry.The fifth part investigates that the domestic regional competitiveness of sheep industry, and evaluates the regional comparative advantages of major mutton sheep production regions. The results indicate: the absolute value of mutton sheep industry's output is rising;although the major mutton sheep production regions has changed to farm area , the west pasturing areas are still very important;the west pasturing areas have relatively regional comparative advantages because of raising scale.The last part brings up policy suggestions and strategies on improving international competitiveness of China's mutton sheep industry. According to the results, the government should implement measures as follows:Firstly, the marketing strategy for the target market should be planned, in order to marketing differentially according to domestic and international market respectively. Secondly, government supporting policies on mutton sheep industry should be strengthened fully use the "yellow box" subsidy to support the firm and household. Thirdly, push forward to the industrialization by strengthening the leader business enterprise and the relationship between production and sale, supporting the brokerage. Fourthly, increase the investment by official finance in scientific research, technology education and transfer for mutton product. Fively, regional comparative advantage shouldbe fully promoted by optimizing the regional distributing of mutton sheep industry. Moreover, we should made fully use the regional comparative advantage of resourse and implement the project of "pasture area breeding, farm area fattening".Finally, the strategy and policy suggestion was made to promote the international competitiveness for China mutton sheep industry, on the basis of quality safety control and building None Stipulated Animal Epidemic Disease area.