Astudy Based On SCP Of Industrial Organization In Meat Processing Of China

The output of meat production in our country is the most in the world, Of course the consumption of meat is also great. In the recent years, with the vigorous development of tourism and catering , the processing industry of meat products is developing very fast. Meat processing industries above scale , such as Shuanghui and Yurun ,have listed and have expanded unceasingly in capital market .This paper applied the theory of industrial organization to analysis the issues of the meat industry organizational structure, the enterprise behavior and market performance. The main purpose of this paper puts forward the suitable development strategy for our meat industry by analyzing the problems of present meat organization structure, enterprise behavior. This strategy can help to the development of the Chinese meat product processing industry, forming the meat processing industry structure and industrial policies which is good for market performance. Tne statement of results are the following:1. The consumption of meat products between rural and urban is imbalance. Income levels, meat prices, consumption habits are the main factors of meat consumption. With the passage of time, consumer awareness of meat has been raised. The spending psychology and behavior of the consumers have changed.2. Currently the most companies of Meat Processing has been in the level of Primary development. The concentration of market industry is very low, especially in the field of high temperature meat products. The large enterprises , such as Shuanghui and Yurun, have established industry development direction to low-temperature meat and cold meat products . At the same time because the difference of products in the quality, specification and price are less obvious, the enterprises, which expand the variation among productions, need expand their advertising investment and establish brand to attract customers. In the recent five years the large meat enterprises have formulate and implement the integration strategy, and constantly have annexed Small and Medium Enterprises(SMES),particularly small slaughtering factories, while expanding the upstream business of this industry, which is breeding pig. All of this have formed a complete industry chain, which is live-pig slaughtering and cooling frozen meat in low temperature. Of course the integration also makes the cost of exiting is very high.3. The price competition and non-price competition such as advertising and merger are beneficial to the formation of industrial organization, which is the features of Oligarchic primarily and medium symbiosis companies .Last century the fierce competition in sausage field in the meat industry makes enterprises realize the importance of technology innovation and good brand. So large enterprise increased technology innovation investment, and the differences of products made by small and medium-sized enterprises are increasingly expanding, thus the large enterprise also won huge brand value. In the nearly 3 years meat industry had high cost-effectiveness. The industry profitability, development ability, solvency and operation ability are all quite good. Because the large-scale pig farming and improvement of industrial chain, the Scale benefit of the industry preliminarily appeared. Although China still has some of the meat industry protection policy , such as subsidies for pig-producing and slaughtering, foreign investors have been optimistic about China's vast market of meat products. Shuanghui and Yurun are involved in the capital of investments banking , which the efficiency of the development is much higher than state-owned enterprises.4. The huge contrast between the rapid growth of the meat processing industry in China and the currently farming methods for free-range pig and sheep make the supervision to the raw materials difficulty,which means that ecological chain model contract farming, features of production and marketing oriented companies, breeding base and scattered farmers ,are prone to problems of food quality .For this problem, we use Game Theory to analyze the conflict between farmers and meat processing enterprises and propose that in order to solve the problem of asymmetric information we must pass third-party agencies and other external oversight of public power, and Interact to form the supply chain governance, which means main interests of all parties coordinated and effective checks and balances .We must increase food safety information disclosure and reward intensity, and make truly transparent market information. We must improve the "Food Safety Law" .The related departments can adopt support, tax incentives and other measures to support a variety of socially responsible investment funds or related groups organizations. The investment options of the socially responsible investment funds can guide enterprises in a direction that conducive to the green industry to invest such as environmental protection, food safety, occupational health . Tne consumer's responsibility should be cultivated and the scale of market with responsible consumers should be expanded .