Comparative Study And Optimization Of Pollution-free Vegetable Production Organization Models In Shandong Province

In recent years, some agriculture products toxic incidents caused by poisoningcowpea and poisoning leek had become the public’s focus with widespread concern inChina, consequently the development of green pollution-free agricultural products hasbeen an inevitable trend. As an important solution to the problem of quality safety ofagricultural products, the pollution-free vegetable production has become the marketfocus and development direction in the vegetable supply markets. However, lots ofproblems still exist in pollution-free vegetable production organization models andtheir external developing conditions, which not only seriously restrict the role ofpollution-free vegetable industry in promoting the rural economy and agriculturaldevelopment, but also weaken its capacity for the sustainable development of thepollution-free vegetable industry. Therefore, both from the self development ofvegetable industry and from the development of the international demand ofpollution-free vegetable industry as well as the development of agriculture and ruraleconomy, it is necessary to carry out a comparative study on pollution-free vegetableproduction organization models and their efficiencies.Starting from the industry organization theory, economic efficiency theory andmarketing theory, the production organization models and their efficiencies arestudied theoretically as the analysis basis of the pollution-free vegetable productionorganization model. The history and current situation of pollution-free vegetableproduction in Shandong are described according to existing data. Further empiricalresearch is performed by studying current situation of present pollution-free vegetableproduction. A qualitative description and comparative analysis is carried out forfarmer family production model (farmer model), vegetable association model(association model), farmers’ specialized cooperative model (cooperative model),modern agricultural company model (company model), and industry integrationmodel (industry model), then the advantages and disadvantages of all possibleproduction organization models are summarized synthetically. After that a qualitativeanalysis is made in two ways for all the pollution-free vegetable production organization models above according to statistical survey data obtained in Qingdaoand Weifang. The first is a comparison between cost structure and output gains; thesecond is an empirical analysis by means of the data envelopment analysis (DEA)method. Based on a comprehensive evaluation for all models, the optimumpollution-free vegetable production organization model is finally filtered out. On thebasis of this model and a combination of theory and survey as well, it is concludedthat a vertical integration model of “company+base+farmer cooperative group” isthe best optimum direction for the development of pollution-free vegetable productionorganization model in Shandong. Moreover, some tuning suggestions are made for thewhole process from production to marketing in this vertical integration model. In theproduction, recommendations are made in aspects like environmental choice,construction option of production base, management of product quality, and so on.While in the marketing, optimization suggestions are provided in five fields such asmarket opportunity analysis, market poisoning, brand strategy, marketing channelstrategy and choice of distribution models.By the analyses above, it is concluded that in five pollution-free vegetableproduction organization models, the modern agricultural company model has thehighest scale and organization degree while farmer family production model hassmaller scale and lower organization degree. As farmers cooperate with each otherthrough associations, the vegetable association model improves its business scale andshares aggregate risks. With mutual cooperation, uniform production and unifiedmanagement, the farmers’ specialized cooperative model reduces production risks andimproves economic benefits. The industry integration model has the highest efficiencybecause it takes large scale production, unified management, and uniform sale. By thecomprehensive comparisons of the cost, output and profit, the industry integrationmodel’s cost is higher than that of modern agricultural company model, vegetableassociation model and farmers’ specialized cooperative model, yet it is close to that offarmer family production model. However, its revenues and profits are the highest dueto the higher inputs and outputs than that of other models. According to resultsobtained from DEA model, whether it is from the total input-output analysis or frominput-output analysis per acre, the efficiency of industry integration model hasreached the best, followed by the farmers’ specialized cooperative model, modernagricultural company model and vegetable association model, and the farmer familyproduction model is at the end of the list. Through comprehensive comparisons of theadvantages and disadvantages among these models’ production efficiencies, it is found that the industry integration model is currently the best production organizationmodel that meets the requirements of pollution-free vegetable production. However,there are also disadvantages in this model, so reasonable adjustment and optimizationshould be done to the industry integration model according to its both advantages anddisadvantages. The development of pollution-free vegetable industry in Shandongshould be based on this model. In the implementation of industry integration model,many marketing development work should be focused on market poisoning,marketing mix, marketing channel strategy and distribution models, which is helpfulfor the perfection of industrial chain and improvement of production process.Finally, related suggestions and measures are put forward on the ground ofanalysis results in both internal and external environment for the optimization ofpollution-free vegetable production organization models. In the internal environment,cooperation among enterprises should be enforced to further consummate eachparticipant’s contractual relationship in order to ensure the interests of all parties andto improve the organization efficiency of vegetable industrial chain. The publicity ofnew production organization mode should be strengthened to guide farmers involvedin production. Professional ethics and industry self-discipline should be cultivated tobuild pollution-free vegetable integration organization brand. In the externalenvironment, it should first to create a favorable market environment and to makesound policies for the optimization of pollution-free vegetable productionorganization models. Scientific innovation should be speeded up and a technologicalinnovation system that operates effectively should be established. Professional bodiesshould be established to manage vegetable production and supply. The optimizationand innovation of pollution-free vegetable production organization models should bedriven by the development of non-agricultural industries. In recent years, some agriculture products toxic incidents caused by poisoningcowpea and poisoning leek had become the public’s focus with widespread concern inChina, consequently the development of green pollution-free agricultural products hasbeen an inevitable trend. As an important solution to the problem of quality safety ofagricultural products, the pollution-free vegetable production has become the marketfocus and development direction in the vegetable supply markets. However, lots ofproblems still exist in pollution-free vegetable production organization models andtheir external developing conditions, which not only seriously restrict the role ofpollution-free vegetable industry in promoting the rural economy and agriculturaldevelopment, but also weaken its capacity for the sustainable development of thepollution-free vegetable industry. Therefore, both from the self development ofvegetable industry and from the development of the international demand ofpollution-free vegetable industry as well as the development of agriculture and ruraleconomy, it is necessary to carry out a comparative study on pollution-free vegetableproduction organization models and their efficiencies.Starting from the industry organization theory, economic efficiency theory andmarketing theory, the production organization models and their efficiencies arestudied theoretically as the analysis basis of the pollution-free vegetable productionorganization model. The history and current situation of pollution-free vegetableproduction in Shandong are described according to existing data. Further empiricalresearch is performed by studying current situation of present pollution-free vegetableproduction. A qualitative description and comparative analysis is carried out forfarmer family production model (farmer model), vegetable association model(association model), farmers’ specialized cooperative model (cooperative model),modern agricultural company model (company model), and industry integrationmodel (industry model), then the advantages and disadvantages of all possibleproduction organization models are summarized synthetically. After that a qualitative analysis is made in two ways for all the pollution-free vegetable productionorganization models above according to statistical survey data obtained in Qingdaoand Weifang. The first is a comparison between cost structure and output gains; thesecond is an empirical analysis by means of the data envelopment analysis (DEA)method. Based on a comprehensive evaluation for all models, the optimumpollution-free vegetable production organization model is finally filtered out. On thebasis of this model and a combination of theory and survey as well, it is concludedthat a vertical integration model of “company+base+farmer cooperative group” isthe best optimum direction for the development of pollution-free vegetable productionorganization model in Shandong. Moreover, some tuning suggestions are made for thewhole process from production to marketing in this vertical integration model. In theproduction, recommendations are made in aspects like environmental choice,construction option of production base, management of product quality, and so on.While in the marketing, optimization suggestions are provided in five fields such asmarket opportunity analysis, market poisoning, brand strategy, marketing channelstrategy and choice of distribution models.By the analyses above, it is concluded that in five pollution-free vegetableproduction organization models, the modern agricultural company model has thehighest scale and organization degree while farmer family production model hassmaller scale and lower organization degree. As farmers cooperate with each otherthrough associations, the vegetable association model improves its business scale andshares aggregate risks. With mutual cooperation, uniform production and unifiedmanagement, the farmers’ specialized cooperative model reduces production risks andimproves economic benefits. The industry integration model has the highest efficiencybecause it takes large scale production, unified management, and uniform sale. By thecomprehensive comparisons of the cost, output and profit, the industry integrationmodel’s cost is higher than that of modern agricultural company model, vegetableassociation model and farmers’ specialized cooperative model, yet it is close to that offarmer family production model. However, its revenues and profits are the highest dueto the higher inputs and outputs than that of other models. According to resultsobtained from DEA model, whether it is from the total input-output analysis or frominput-output analysis per acre, the efficiency of industry integration model hasreached the best, followed by the farmers’ specialized cooperative model, modernagricultural company model and vegetable association model, and the farmer familyproduction model is at the end of the list. Through comprehensive comparisons of the advantages and disadvantages among these models’ production efficiencies, it isfound that the industry integration model is currently the best production organizationmodel that meets the requirements of pollution-free vegetable production. However,there are also disadvantages in this model, so reasonable adjustment and optimizationshould be done to the industry integration model according to its both advantages anddisadvantages. The development of pollution-free vegetable industry in Shandongshould be based on this model. In the implementation of industry integration model,many marketing development work should be focused on market poisoning,marketing mix, marketing channel strategy and distribution models, which is helpfulfor the perfection of industrial chain and improvement of production process.Finally, related suggestions and measures are put forward on the ground ofanalysis results in both internal and external environment for the optimization ofpollution-free vegetable production organization models. In the internal environment,cooperation among enterprises should be enforced to further consummate eachparticipant’s contractual relationship in order to ensure the interests of all parties andto improve the organization efficiency of vegetable industrial chain. The publicity ofnew production organization mode should be strengthened to guide farmers involvedin production. Professional ethics and industry self-discipline should be cultivated tobuild pollution-free vegetable integration organization brand. In the externalenvironment, it should first to create a favorable market environment and to makesound policies for the optimization of pollution-free vegetable productionorganization models. Scientific innovation should be speeded up and a technologicalinnovation system that operates effectively should be established. Professional bodiesshould be established to manage vegetable production and supply. The optimizationand innovation of pollution-free vegetable production organization models should bedriven by the development of non-agricultural industries.