The Analysis Of Xinjiang Dairy Industry Chain Operation Mode

Dairy industry chain is an organic system composed by dairy farmers, dairypackaging material suppliers, dairy products processing enterprises, consumers, andother organizations, such as government and industry associations and other factors.Including three main components of the organic system, like the production of rawmilk, dairy processing and dairy consumption. The whole trend of Xinjiang’ dairyindustry market concentration has increased with phased adjustments. According toBain’s classification system, the market structure of Xinjiang’ dairy industry belongsto oligopoly IV. The traditional SCP (market structure---market conduct---marketperformance) paradigm points put that higher market concentration will lead to highermarket performance. Meanwhile, industry life theory argues that enterprises in rapidgrowth will generally get higher profit level. However, Annual Report of the listedcompanies in the dairy processing reveals that annual net profit margin of Xinjiang’dairy products processing enterprises maintains at the low level about4%for a longterm.This thesis demonstrates the current situation that the concentration of Xinjiang’dairy industry is high, but the profit level is low. Setting foot in Xinjiang’ dairyprocessing enterprises, it analyzes the upstream and downstream market of Xinjiang’dairy chain with empirical method to find out the main factors determining to theprofit distribution. Makes every effort to accurately reveal the internal operation modeand development trend of dairy industry chain in Xinjiang, to explore relatedsuggestions to promote the development of efficient Xinjiang’ dairy industry chain, topromote sustained and healthy development of dairy industry in Xinjiang.