Study On The Development Of Malting Barley Industry In China On The Perspective Of Industry Chain

Malting barley is the main raw material for brewing beer. The long-term stable development ofmalting barley industry is of great significance for enhancing the growth of the beer industry, increasingthe income of farmers in the main producing areas, promoting rural economic development in remoteareas, national unity and social stability. But now the stakeholders of malting barley industry chainfocus only on short-term interests, the link is a link loose even a serious gap, the subject generally facehigh production costs, low levels of profit dilemma, affecting the development of malting barleyindustry. According to the survey data to the planting farmers, middlemen, malteries and brewers, basedon the vertical coordination theory and transaction cost, focusing on the analysis of the influencingfactors in the vertical collaboration will in various aspects of the industry chain and the cost-benefit ofvarious stakeholders, providing a theoretical basis and reference for the establishment of the industrialchain of the main vertical close collaboration and sharing of benefits and win-win mechanism, andproposing targeted policy recommendations.The paper enriches the existing economic analysis of malting barley industry and makes study inthe following aspects:Firstly, this paper clarifies the development status, characteristics and existing problems of maltingbarley and puts forword the types and characteristics of the malting barley industry chain andsystematically studies the connected mechanism between the various stakeholders of malting barleyindustry chain.Secondly, this paper analyzes the vertical collaboration of malting barley industry chain, focusingon the empirical study of farmers in their choice behavior of willingness for verticalcollaboration.Some cinclusions could be drawn are as follows:①The malting barley seeds of farmers come from six channels, seed companies, the contractenterprises, agricultural extension services, malting barley traders, the other farmers and retention ofthemselves, with the retained seeds as the main source of the seeds of surveyed famers. Farmers sellbarley in two ways, one is market transactions with the malting barley middlemen, the other is based oncontract sales for malt enterprises, with the former as the main sale. The vertical coordination of maltbusinesses and beer companies includes market transactions, contract sales and vertical integration.②Farmers’ willingness to collaborate with seed companies is very positive. Logit model’s resultsshow that the number of rural households farming population, sown area, quality, and the reputation ofthe seeders are having a significant positive impact on the willingness to collaborate for farmers andenterprises, while the prices of the seeds, the level of satisfaction, and the acquaintances that can creditto farmers are having a significant negative impact on the willingness to collaborate for farmers andenterprises.③Farmers’ willingness to collaborate with malt enterprises is very positive. Logit model’s resultsshow that the educational level, the number of family farming, the proportion of the malting barleyincome of household income, the area sown to barley, the price guarantee, payment guarantee, and thekind of reputation of buyers are having a significant positive impact on the farmers’ willingness to collaborate with malt enterprises, while the information of the buyers is having a significant negativeimpact on the wheat farmers’ willingness to collaborate with malt enterprises.Thirdly, this paper tries to make the cost-benefit analysis of the body of malting barley industry,and analyzes the changes and the reasons of malting barley middlemen for the pattern of benefitsdistribution of the circulation of the malting barley from an economic point of view, considering thedominant position of malting barley middlemen. Some cinclusions could be drawn are as follows:①During the production stage, barley farmers’ net income is generally lower than the local wheat,rice, potatoes, corn, canola and other crops. The income of farmers in contract sales is higher than thatof farmers in market transactions.②During the acquisition stage, with the acquisition of malting barley traders increase in the size,cost-benefit ratio has also increased. Research shows that the monopoly acquisition of the vendors ofmalting barley and malt companies leads to the acquisition of welfare losses in malting barley market,but the presence of malting barley traders reduce welfare losses of processing enterprises.Though thepresence of malting barley middlemen increased the level of division of labor, increased transactioncosts directly attributable to the acquisition of processing enterprises, but largely reduce the transactioncosts malt business directly have with the growers, so generally speaking, beer barley acquisition of partof brokers exist to improve the efficiency of the acquisition of market transactions, and theimprovement of malting barley acquisition played a positive active role.③Through a typical enterprise data analysis of the costs and benefits of the enterprises of malt andbeer companies, this paper points out that the processing enterprises are affected by the rising rawmaterial costs and the industry’s competition, so profitability is limited.Based on the above research, this paper puts forward the proposal to promote stable and healthydevelopment of the malting barley industry:①The government should positively guide the industrialmanagement of the malting barley industry.②A uniform standard should be set in various aspects ofthe circulation of barley across the country.③Various policies should be introduced to promote thesound development of the barley industry.④The support and protection of the barley industry shouldbe strengthened of ethnic minorities in remote areas.