Study On Vertical Organizational Relationship Of Dairy Industry Chains

Study on vertical organizational relationship is the most concerned issue, the truth of which is the connection of the processes of pre-production, in-production and after-production and it is also the internal organic integration and complimentary mechanism between the formation of complete industry chains and the realization of the industry chains.Dairy industry is a special factor influencing and interconnected with agriculture, industry and tertiary with "vertical" relationship presented in different stages among the main participants of industry chains. Thus, in fact the dairy industry's research is the dairy industry chains' study on the vertical relationship between the organizations.With the rapid development of dairy industry in China, China's dairy industry is changing from the focus on growth of the turnover to optimization of the structure of the whole industry and is at the essential moment to raise industry quality in every aspects and its competitive ability. Further more, it is very important to study in depth on vertical organizational relationship of dairy industry chains, develop industrialization of the dairy industry and improve the development of the second industry and the third industry, which is also called special agriculture. In addition, it is also important to increase the income of farmers and efficiency of the industry. Finally, it is significant to offer some references for central and local governments to make policies on supporting and adjusting the industry.Based on industrial organizational theory and the theory on systematic economics, and the study is the combination of empirical analysis and formal analysis ; historical analysis and comparable analysis; quantum analysis and physical analysis, and based on the study of present conditions of the vertical organizational relationship of dairy products of typical countries in the world, this study is also a comprehensive analysis and summary about the present situation and the evolving factors of the vertical organizational relationship of dairy industry chains of China and a further study on the relationship forms of main vertical organizational relationship of dairy industry chains of China which might also be regarded as the vertically contained relation activities. Then the study indicates the evolving factors, the mechanism of the evolution, the approaches of optimizing and integrating the vertical organizational relationship of the dairy industry chains and some key problems in realizing the targeted models as well.Further more, the study shows the closeness among the main participants of the relative behaviors of the vertical organizational relationship of dairy products of developed countries in the world and the realized vertical organizational relationship of unified cooperative society manipulated by economical benefits, which has brought about the stable groups of common wealth with resources, profits and risks shared together.Nearly one hundred years have been past since the birth of dairy industry of China with three industrial models formed—suburban model, animal husbandry model, and agricultural model, under which the main participants of the dairy industry chains have been going from scattered and small-scaled operation to regulated and industrialized management. As a result, vertical organizational relationship of dairy industry chains has been growing from vertical unification to diversification.The vertical organizational relationship of dairy industry chains is generally being made mainly by the unified management of the government under the planed economy and continually adjusted and selected through participants of various activities under the marketing economy.The evolution of The vertical organizational relationship of dairy industry is the co-functional result of the change of the governmental enforced policies and the change of the non-forced policies dominated by external economical system, among which the governmental enforced policies are the key factor. And transaction expenses' decrease also helps to the advanced development of the vertical organizational relationship of dairy industry.Influenced by the outer profits and the transaction expenses, the development of the vertical organizational relationship of dairy industry begins with the systematic balance as its starting point of the development cycling of balance—misbalance--balance. During the process of the development of the vertical organizational relationship of dairy industry, the function of the government has changed gradually from the direct interference under the planed economy to indirect control under the market economy. There is a considerable instability in the vertical contained relationship dominated by dairy industry. The analysis of G-H-M model of the vertical organizational relationship of dairy industry illustrates that the dairy farmers and the dairy industry should be connected through property integration and owned by the same owner, which would be an efficient recourses assignment.Unification of cooperative society between the enterprises and the fanners ought to be Target Model of China's vertical organizational relationship of dairy industry. The transition of vertical organizational relationship of dairy industry from vertical containment to the unification of cooperative society is the approach to optimize and integrate China's vertical organizational relationship of dairy industry.Finally the thesis discusses the limits and looked to the prospective issues which need further study.The possible innovations of the study: 1 The study puts accurate summary for the evolution and the present situation of vertical organizational relationship of China's dairy industry chain according to the analysis on different stages of entire process, and compares and analyzes vertical organizational relationship of dairy industry chains of four typical countries such as India, New Zealand, the Netherlands and Australia, which proves to be innovative in academic study and practice summary.2 G-H-M is used in the study to investigate the empirical relationship among the increased production volume and enlarged market scale of China's dairy industry and evolution of vertical organizational relationship of China's dairy industry chain. And the mechanism and the process of evolution of vertical organizational relationship of China's dairy industry chains are also discussed in the study.In the end, the mathematical model of the mechanism of evolution of vertical organizational relationship of China's dairy industry chains are discussed in the study, which proves to be innovative in academic study and study approaches.