Studies On The Pig Supply Chain In Changsha

Pigs are the main Agri-product of Changsha, but the low efficiency in pig supply chain in Changsha was attributed to the pig- raising structure with free-range farming households. It's including the upstream and downstream companies are scattered, chaotic and poor, pig industry lack of competitiveness, pork safety not guaranteed and frequent fluctuations in the price of pigs and so on.The researches on pigs and the supply chain of pigs at home and abroad before are focuses on the pork supply chain not the pigs which are alive in the whole country or some province. This paper is to study vertical coordination of pigs supply chain of Changsha based on transaction cost economics, which are the vertical coordination among the upstream supplies including farmers piglets company, feed and animal medicine company and households and the vertical coordination among downstream slaughter and processing cooperative enterprise. The researches shows that there are pig traders between the upstream supplies and households, which forms the upstream structure of "supplier of piglets and feed - pig trader -households" , which causes the style of vertical coordination are mainly market trades and few contracts. And between upstream slaughter and culture enterprise, vertical coordination takes forms of contracts, joint ventures, vertical integration and other closer means, but the main mechanism is open market mode.The loose mode of vertical coordination, not only leads to uncertainty of price, quality and quantities for packer, it also brings difficulty of production decision and price to producer and the problems of food safety. So it describes two modes: "leading enterprises + breeding base/cooperatives + households " and "upstream suppliers + scale pig farm/cooperatives + slaughter and Processing cooperative enterprise" , which organizes the members and improves the efficiency of the pig supplychain.