The Economic Analysis Of China's Central Plains Milk Safety Problem In The Dairy Supply Chain System

Along with the development of China's national economy and the improvement of people's living standard, the rate grows up on yielding and consuming of diary products and therefore the profit does as well. The diary industry has been going prosperous in the 21st century.Although diary industry in China develops rapidly, the system of supply chain of diary products as well as the system of law and supervision-and-control is immature and containing some defects which hide some dangers for security of dairy products. It is expected to find out the main factors leading to those problems and methods to work out those security matters. Once supervision of government on quality control are completed and effects of profit-sharing and risk-sharing on supply chain works well, the security problems of diary products will be solved.Starting with describing the basic conception of supply chain and Game Theory, this essay reports the current situation of original milk's production and acquisition in China's dairy supply chain. The action of supply chain members is explained seriatim in four aspects according to the related strategies of Game Theory and then the cause is found out, which results in those safety problems. The conclusions and policy suggestions are offered in the last part. Based on the above theoretical and empirical analysis, this essay gives suggestions on completing construction of supply chain in China's diary industry through the acts of inspection from government, social responsibility of enterprises, and proper management in milkdepot.