A Study On Advancing The Agriculture Industrialization And Policy Recommendation In Shandong

The reform and opening-up in our country start from the agriculture industry. One important issue that we are facing is how to effectively organize thousand and millions of peasants entering the market while the house-hold contract is widely carried out. After several years' exploration, a new agriculture developing stratagem which is to organize rural economics by industrialization was firstly summarized in Shandong Province and later quickly adopted in the whole country. It has been proved that the agricultural industrialization is an effective measure on the basis of house-hold contract to realize massive agriculture management and bring peasants to the market, besides, to move the adjustment of the rural and agricultural economy. In all, it also has played an important role in the agriculture development, rural prosperity and peasants becoming wealth.The main thought of China's reform and opening-up is "To cross the river, one has to be sure about stones at the bottom". So the development of the agriculture industrialization also depends on what we learn from practice. Although there are some discussions and analysis on the agricultural industrialization from different view points in domestic economics field, most of them are only sense unscramble from one size or purely theoretical proof and far behind the urgent need to guide the agriculture industrialization. Agriculture industrialization should be important research in the industry economics. From the shaping of the industry economics, the theory of industry organization was first developed and became mature. But in China, the main focus in the field of industrial economics is the theoretical side of the industrial structure including the industry correlation and industry distribution (of course, this is determined by the special features in Chinese economic development and the urgent need in the reality). There is relatively less study in industry organization theory.With the guidance of the industry organization theory and based on nearly 30 years practice of the agriculture industrialization in Shandong province, we systematically summarized the basic course and achievements in Shandong agriculture industrialization process, analyzed the prominent conflicts and problems, and gave the policy recommendations on how to further promote Shandong agriculture industrialization.There are six parts in this article. In the first part, we introduced the meaning, contents, methods and original ideas of the article. The second part included theories of industrial organization and the agriculture industrialization where we elaborated the definition, study schools and the implication and development of theories of industrial organization in China; analyzed the issues related to agriculture industrialization, such as scale economy, entering and quitting trade barrier, enterprises' behaviors, and market efficiency and so on, in terms of the combination of industry and agriculture. The third one put forward the agriculture industrialization and the present study conditions at home and abroad. In this part, we analyzed the background, development, popularization of industrialization of agriculture, and discussed the connotations, essential characteristics, mechanism of organization, and suggestions on the policy of related theories both here and abroad. The forth part included the practical experiences and enlightenment of agriculture industrialization abroad where we introduced the overseas operation of vertical integration involving the patterns of indenture system, agricultural company, cooperative society, professional association and so forth; concluded five radical experiences, three innovations and four enlightenments to Shandong. The fifth one presented the challenges and opportunities encountered by the agriculture industrialization in Shandong. Here, we summarized the basal courses, primary achievements and radical experiences of the industrialization of agriculture there; analyzed the developmental opportunities and important challenges in the next step combined the future trends of developments. The last part contained the considerations and suggestions to enhance the development of agriculture industrialization in Shandong. We summarized the analyses of above theories and the foundation of practices, analyzed the focal points and the thread in the future work, and brought forth the concrete suggestions on the policies of speeding the developments of agriculture industrialization up in Shandong.