Research On Benefit Joint Mechanism Between Leading Enterprises And Dairy Household Of Inner Mongolia’s Dairy Industry

Dairy is an important industry bearing on people’s livelihood, is one of the strongest industries in the development of animal husbandry in China. After more than60years of rapid development, China has become a great dairy country in the world. Inner Mongolia is an important production base of animal husbandry in China, and dairy is one of the fastest characteristic industry in recent years. However, Peasant households Located at the source of Dairy industry chain are in the two paradoxical dilemmas. One is that while the nation dairy is rapidly developing and the size and income of the dairy products enterprises has been expanding, breeding benefits of the household has continued declining instead of increasing. The other paradoxical dilemma is that with the advantage of resource of the dairy cattle breeding and the location of the two national milk leading enterprises—yili and mengniu who has great demand for raw milk in Inner Mongolia, breeding benefits of the household has continued declining. If the profit is10minutes for the entire industry chain, dairy enterprises get3percent, while the dairy farmers get only1minute. This has seriously dampened enthusiasm for production of dairy farmers, hampering the healthy development of the industry. Benefit distribution imbalances between leading enterprises and farmers is the crux of the phenomenon. Therefore, research of Inner Mongolia dairy industry benefit joint mechanism is of great significance for advancing the healthy development of the dairy industry.This article is based on the industrial organization theory, principal agent theory, transaction cost theory, and game theory, using empirical analysis and game analysis method. The objective of the study is to theoretically find the cause of the imbalance and unreasonable benefits distribution between the leading enterprises and the dairy farmers who are the main benefit subjects through the study on two levels at the way of benefit linking and the benefit distribution mechanism of the existing benefit joint mechanism in Inner Mongolia. And on this basis, optimizing the existing benefit joint mechanism, establish an integrated benefit joint mechanism To enhance the productivity of the industry, advancing the healthy and sustainable development of the dairy industry.Through the study on the existing "compact-based" and "elements-based" benefit joint mechanism, we can draw the following conclusions:1. Inconsistency of leading enterprises and farmers has lead to that the enterprises are lack of the dynamic to protect the benefit of dairy farmers, and lack of dynamic to change the benefit relationship with the dairy farmers. Dairy household are on the weak position.2. The stability of "compact-based" benefit joint mechanism is poor, and the disposition of income is propitious to the leading enterprises. The stability of loose "elements-based" benefit joint mechanism has enhanced because the enterprises and Dairy household have invested specific assets both, but the disposition of income is propitious to the leading enterprises to a certain extent. The benefit relationship between leading enterprises and dairy household is still opposing.3. To establish close "elements-based" benefit joint mechanism can optimize the existing mechanisms. Under the mechanisms, the stability of compact between enterprises and dairy household has been enhanced, and their income is of complementary and promoting mutually. The enterprises and dairy household has become into an benefit community of "sharing revenue risks". The respective business objectives to maximize the benefits unified. Enterprises Generate the dynamic to protect the benefit of dairy farmers, the relationship between them has turned from confrontation to coexistence and win-win.