Research On Source Govenrance On Quality And Safety Of Supply Chain Of Agircultural Products

The concern of the quality and safety of agricultural products has been increasingly improved. Supply chain of agricultural products is inseparable with agricultural products quality and safety which means the latter can be assured only by the controlling of each procession of the supply chain. Concerning on the quality and safety of the source products can infirm the quality of the input procession of the supply chain. The main form of the input procession in China is the Agricultural Cooperatives or the units of villages consisted of small farmers. While the Agricultural Cooperatives are always bothered by the Free-riding phenomenon, Game Theory is a commonly used tool to solve the problem.The structure of the paper is as follows. Firstly, presents the notion that Free-riding phenomenon in Agricultural Cooperatives will ruin the quality and safety of agricultural products from input by a brief review of the situation of the Agricultural Cooperatives in China. Secondly, gives a representation of references in Supply Chain Management of agricultural products, Agricultural Cooperatives and the solutions to the Free-riding phenomenon. Thirdly, based on the limited rationality and learning ability of the farmers, use the replicator dynamics theory which is the framework of repeated random matching game among large groups of limited-rational farmers to prove that all high-cost farmers will choose the free-riding strategy. Fourthly, uses the Thief and the Guard Game to propose some external super-visional solutions to the Free-riding phenomenon. Then indicate that the external supervision is not efficiency because of information asymmetry. The fifth part concentrates on internal governance of the Agricultural Cooperatives, basing on the Evolutionary Games frame to illustrate that the Free-riding phenomenon can be solved by setting up reward systems, educating the members of the Agricultural Cooperatives, and developing the technology of the members by technical guidance from high-tech members or by technical training. The sixth part uses a two-cases-comparison questionnaire to prove the solutions. And finally the seventh part summarizes the whole article.