Broiler Farmers And Broiler Business Orders For Arrangements And Compliance Mechanisms

Since the early 1990s, chicken industry has been developing rapidly in china, and now china is the second biggest chicken producing country. However, chicken industry in China is mainly small-scale production by household farmers, which can not realize industrialization though scale expansion. Contract farming has played an important role in promoting the industrialization of chicken industry by linking chicken farmers with firms effectively. But contract farming also witnessed problems of low contract enforcement and commonly existing default, which not only reduces the enthusiasm of firms' participation in contract farming but also blocks the process of industrialization. Thus, the study on the mechanism of contract arrangement and enforcement can undoubtedly enrich related theories, as well as provide some practice instructions.Presently, there have been many studies on contract farming. But systematic study on problem of contract arrangement and enforcement in chicken industry, either from firm level or from farmer level, is in vacancy. Based on the existing study achievements, various theories of agricultural industrialization, transaction cost, transaction risk, and submit-agency, etc, are applied to the case studies of Zhejiang province in this study. Firstly, a positive analysis framework about contract arrangement and enforcement is constructed. Then the study analyzes and assesses the factors influencing contract arrangement and enforcement according to the framework, and draws out some conclusions, incorporated with typical case studies. Finally, some suggestions and tips were proposed. This paper is divided into four parts.The first part is the introduction. Study objects and related concepts are presented, as well as study motives, aims, frameworks, related theories and methods. Also, some innovations and imperfections are pointed out.The second part provides a literature review. Literatures focused on the contract farming both in and out of China are reviewed, based on the theory of contract arrangement and enforcement in part one.In the third part, a positive analysis framework is constructed. According to the existing study achievements, the contract arrangement between firms and farmers is the arrangement of transaction contract substantially. Whether firms and farmers take part in the contract farming is determined by related transaction cost, which is decides by characteristics of transaction, such as limited rationality, opportunism, assets specificity, uncertainty, transaction frequency, etc. Moreover, the characteristics of transaction are influences by the characteristics of main bodies and environment. That is to say, the characteristics of main bodies and environment determine the contract arrangement between firms and farmers, which in turn decides the enforcement and performance of the contract. Based on the former hypothesis, a positive analysisframework (chicken industry environmentâ†'characteristics of chicken farmers and firmsâ†' contract arrangement â†' contract enforcementâ†' contract performance) is established as a tool, combined with characteristic of chicken industry.The forth part is the demonstration analysis. The constructed framework is applied to analyze the factors influencing farmers' and firms' participation into contract farming, contract arrangement and enforcement. Then a case study is presented to add supplement and enrichment. And several revelations of significance are drawn out.In the fifth part, some conclusions and recommendations on the development of chicken industry are given, on the basis of former studies.