A Study On Industrialized Operation Of Chinese Tea Industry

Tea is a kind of important industrial crops as well as farm produce in China with an advantage of earning a lot of foreign exchange. In Chinese economic system, there obviously exists a huge market entity that specially engages in the production, processing, and trade of tea products. In this case, tea industry can be studied as a relatively independent industry. At present, some problems have emerged in the development of Chinese tea economy, such as relatively low technology, small-scaled production, impeded circulation, insufficient and slow information, low benefits, and unsatisfying consumption, which should be solved by innovation of organization and system and exploration of new management patterns and operation mechanism.According to the basic paradigm of "structure-acts-results" inthe theory on industry organization, system environment and organization structure can determine the operating results of an industry by influencing the acts of its entity. This indicates that the operating results of industry can be improved in essence through optimization of market operation patterns. The industrialized operation of tea products reflects vital significance as it uses the relationship of market interest as a linking tie to coordinate the conflict between the small units of separate accounting in tea production and operation and the socialized mass production, connect the scattering interest entities into anorganic unity and thus realize integrated operation. The purpose of industrialized operation is to try to highlight the stimulating function of interest of household production and achieve high efficiency brought by socialized cooperative division of labor through adequate systematic arrangements.The industrialization of tea industry is quite different from that of agriculture. The central issue of organization innovation in agricultural industrialization is how villages, agriculture, and peasants are directed into and connected with market. Therefore, peasant households have always been taken as the foothold of its organization carrier. Of its organization patterns, "companies + peasant households" and "peasant households + agencies + market" are the typical ones. However, the industrialization of tea industry will not only take into account peasant households, but also have to deal with the problem of low benefits troubling the entities of tea process and trade. Consequently, the industrialization of tea industry should be an integration of all the organizations concerned including tea peasants, processors, and traders. Viewed from this point, the industrialization of tea industry actually refers to the systematic innovation of tea industry organizations, which is to promote operating efficiency and developing potentialities of tea industry by restructuring its organizations. Formally it will make a crosswise and longitudinal integration of the operating entities in tea industry. Crosswise integration means to increase market centralization by means of scale-economy and other relevant methods; while longitudinal integration aims to improve the degree of integrated operation within the industry organization through ways such as "non-market-arrangement" .If observations are made about the evolution of Chinese tea industry organization and the trade relationship between the present production chain of tea products and the market, it is to be discovered that: first, as raw tea easily gets rotten and can not stand store and transportation, rough process of primary products with raw tea as the material is the basic link in the production and operation of tea organizations and their entities; second, due to the implementation of relevant standards, fine process of advanced products, which are of certain specifications andprocessed in batches for export, is the important link in Chinese tea production and operation; third, according to the new trend in food and drink market, refined process of tea, which is to develop upgraded products by making a synthetic use of effective elements contained in te...