Study On Xinjing Fruit Farmer’s Choice Of Vertical Coordination In Fruit Industry

Fruit industry, second only to agricultural food and vegetables, is the third largest industry and the bulk of agricultural product exports in China which plays important role in adjusting agricultural structure, increasing farmer’s income, developing rural economy and improving ecological environment. As an industrial chain, Chinese fruit industry is relatively loose in collaboration of various aspects between up and downstream. Especially the main subject of fruit plant is a large number of scattered small-scale farmers, can not adapt to reality stress and challenges of technological progress, change of fruit consumption structure and concept and more fierce competition of domestic and foreign markets during Chinese fruit industry development. How to strengthen collaboration among farmers, up and downstream aspects and jointly participate in civil and abroad market competition is currently important questions for Chinese fruit industry. Therefore, research on vertical coordination relation of fruit industry from farmers point of view, is important theoretical and practical significance.Taking Xinjiang fruit industry as an example, this paper studies vertical coordination relation of Xinjiang fruit industry from framer angle.The standard research and diagnosis research unifies,qualitative investigation and quantitative investigation unify.Mainly with empirical and quantitative methods, it adopts498peasant households’ investigation data in4representative counties and towns to conduct related research combined with case study, correlation analysis model,logit model and Tanslog Stochastic Frontier Production Function.Fruit industry chain involves a wide range of aspect, including the cultivation of fruit trees, production and supply of fruit trees seedlings, planting fruit trees, storage of fruit products and processing at the stage of production and plant; the purchase and sale of nursery stock, raw material procurement, product purchase and sale of fruit and fruit products at the stage of materials purchasing and product sales; agricultural technical services, circulation and transportation at the stage of production services.Viewing from investigation of Xinjiang fruit industry chain, Xinjiang fruit industry has a relatively complete industrial chain; Between various links joint way has been some changes; production contracts, vertical integration and other forms of closer vertical coordination new industrial chain has taken place. However, on the whole, market trading are also prevalent.From the angle of obtaining seedlings, self-cultivitating and planting farmers account for9.84percent of peasant households among498farmers surveyed, other patterns include acquiring seedlings through nearby farmers, nursery grounds, markets and door-to-door vendors as for other manners. As farmers choose methods of purchasing seedlings,avoiding the uncertainty risk in price and the quality of fruit tree seedlings, reducing transaction costs.Quality of fruit tree seedlings is directly related to farmer’s performance, therefore, farmers attach great importance to seedling purchases. Farmers show a higher willingness to take part in direct contract provided by qualified large nursery. Among498households surveyed,280farmers will certainly take part in contract, account for a ratio of56.22%. Regression results of logit model indicate that household educational level, fruits planting scale,quality assurance, price, supplier’s reputation, credit, plant guide, product purchase has significant impact on farmers’involving in seedling supply contract.On the whole, the vertical coordination forms in the sales link of farmers planting fruit in Xinjiang are as following:market transaction, sales contract, cooperatives and production contract. Marketing channels of product in Xinjiang are generally as follows: direct sales to retailers or consumers, sales to pedlars and to the circulating, storage and processing enterprises. The survey indicates that famers directly selling products to retailers or consumers are less, and selling products to pedlars account for the most of total number of farmers in market transaction. The vertical coordination form of farmers planting fragrant pears and apples in the sales link gives priority to spot market transaction. Farmers planting fruit select vertical coordination in the sales link according to different conditions of regions and themselves with the main purpose of reducing uncertainty and lowering transaction costs. Based on the analysis of binary Logit selection model, it can be found that the following variables have more obvious significance:age of farmers, education level of farmers, with/without non-agricultural income, fruits planting scale, payment guarantee, payment timeliness, access to good price, the credibility of buyers, quality of fruit, fluctuation in prices of fruit, and are main factors influencing on farmers of planting fragrant pears and apples selecting the form of vertical coordination in the sales link.There are farmers who do not comply with safe quality control in production of fruit products. Close vertical coordination form plays a active role in improving safe quality control, and contributes to reducing farmers violating safe quality control behaviors. It is stated by the results of binary Logit selection model that the following seven variables are the obvious factors affecting farmers’behaviors of safe quality control:sales contract, cooperatives or production contract, education level of farmers, risk preference, participation in training of planting skills, the degree of understanding, supervision and administration of the government and so on.There is a marked difference in production technical efficiency in production and operation of fragrant pears. The average production technical efficiency of286farmers planting pears is77.80%, namely, under the current technical conditions and with constant input of production factors, the output of fragrant pears probable increases by22.20%in case of eliminating lose of efficiency, where there is still a big improvement in production technical efficiency of farmers. Compared to spot market transaction, there is an increase at different levels in production technical efficiency of farmers planting fragrant pears under the close vertical coordination form. The closer the vertical coordination form is, the higher the production technical efficiency of farmers planting fragrant pears will be. The estimated results of parameter of Tanslog Stochastic Frontier Production Function Model indicates that the following variables have more obvious effects on production technical efficiency: the form of sales contract, the form of cooperatives, the form of production contract, education level of farmers, number of labor force in farmers’families, with/without non-agricultural income etc..Based on the above-mentioned researches, this paper offers following suggestions of policy:government should strengthen the management of fruit nursery stock industry, increase publicity and guidance of close coordination supply of nursery stocks; encourage and support coordination of farmers planting fruit with circulating, storage and processing enterprises; improve production and operation scale of fruit industry at all stages; strengthen quality safety consciousness of farmers producing agricultural products; assist the development of rural cooperative economic organizations; improve operation system and so on.