Theoretical And Empirical Study Of The Agricultural Product Processing Industry A Competitive Advantage

Three Rural Issues are the basic issues concerned with Chinese economy and the development of society. It is also of strategic position in the development of national economy and society. However, the issues of " agriculture,countryside and farmer" have been the weakness in the Chinese development. Developing farming industry energetically, pushing the management of agricultural industrialization positively and improving comparative benefits of agricultural production operations are important to solve the "agriculture,countryside and farmer" problem and boost the rural economy. Developing the agricultural processing industry is of directional,global and strategic significance. However, developing one industry grandly, we should foster and advance industrial competitive advantage consistently. Therefore, to develop the agricultural processing industry, we must evaluate its competitive advantage and combine the regional feature to analyze the source of competitive advantage in order to take countermeasures. Based on the logic mentioned above, the research is trying to apply the industral economics theory and competitive advantage theory to expose the competitive advantage source of agricultural processing industry and bring forward the counter policy measures. For the characteristic of agricultural processing industry, there may be so many diversities in different regions of china, so we only choose Jilin province as a representative case.The paper takes into three parts, the theoretical study part, the positive study part and the policy suggestion partThe first part is theoretical study. Frist of all, the author analyzes the importance of agricultural processing industry to solve the Three Rural Issues, and the relationship between the agricultural processing industry and agriculture, industry, the third industry. Based on the Porter's competitive advantage theory, the author first defines the concept of agricultural processing industry competitive advantage, and differentiates the concept of agricultural products competitive advantage with it, the agricultural products competitive advantage is only Necessary but not the Sufficient conditions to gricultural processing industry competitive advantage. Then the paper theoreticaly analyzes the source of gricultural processing industry competitive advantage, how to cultivate the gricultural processing industry competitive advantage, the author suggests that it should distribute rationally, promote the industry clusters and take use of affter advantage of industry. The positive study takes Jilin province as a case and is composed of two parts, first part is analyzing the impact factors of the gricultural processing industry, the second part is describing the status in quo of the gricultural processing industry and measuring the gricultural processing industry competitive advantage in Jilin. Whth the historical angle, the paper points out that the gricultural processing industry in Jilin has made great stride during the past decades. However, there are still many problems, the construction of raw meterial base is lag behind the development of industry, the low level of enterprise management, the comparative lagging of institution reform comparing to the levelof the agricultral industry development The important part then is to construct a measure inex system of competitive advantage with four dimensions, the production factor, the trade competitiveness, the government support and the maket competitiveness. As a conclusion of the measurement, the level of development of agricultral processing industry is of a lower status comparing to the average national level, not mention the gap with the developed regions, only has weak competitive advantage in food manufacture, beverage and tobacco industries. She doesn't turn the comparative advantage of nature resource into the competitive advantage of agricultral processing industry, and the lack of government support is an important ingredient despite of the lower level of technique and enterprise management.The last part of this paper is policy suggestion. Based on the study above, the paper suggests that Jilin should make full use of the endowment of nature resource, take cost-leading strategy and differential development strategy to set up the agricultural processing industry competitive advantage. There are five points, 1.ensure the main dominant agricultural processing industry, such as maize processing and wood processing; 2.transit the function of government, strenthen the policy and financial support; 3.set up the technical innovaton system, promote the development of industry technology; 4.enforce the industry regulation; 5 .perfect the market system, ensure the supply of raw material.