Analysis Of The Effect Of Local Governments In The Vegetable Production And Marketing System

Food and vegetables as a vast number of consumers every day necessities, itsquantity, price, quality affect every corner of society. It is related to the majority ofproducers and consumers’livelihood. Since2008the phenomenon of fluctuatingprices of vegetables is adjective.There is a coexist and repeated contradiction that lowfood prices effect low agricultural and expensive vegetables is harmful to the public.According to the analysis of the emergence of this contradiction, it is not a problem ofsingle aspect of a vegetable production, circulation, or sales, but a problem of theentire vegetable production system. Vegetable production, circulation, marketingchain, market competition is relatively full. The root causes of these problems is thatthe market price signal distortslying in the interference of non-market factors and themarket price benchmark and information transmission role doesn’t effect. The entirevegetable production system has a problem. To resolve this problem, the localgovernment "visible hand" should play a role with market "invisible hand".Local governments involved in vegetable production and marketing system, tostabilize the prices of vegetables, to ensure stable and orderly vegetable production,either from a theoretical perspective or the perspective of practical needs, is of greatsignificance. This paper analyze the system of Vegetable production and marketing,the game between participate and interests, vegetables price formation mechanism and other aspects. Per analysis of the necessity and feasibility of local governmentparticipating the vegetable production and marketing system building, the role of thelocal government in the vegetable production and marketing system is further studied.Wuxi City for the study sample, there is a detailed analysis of obstacles exist in realityof the current vegetable production factors. At the same time it points out the roleplayed by local governments in the vegetable production system in the correct targetand path selection and that is making vegetable production and marketing system linewith the market economic value to the law excluding non-market factors’impact,giving full play to the market price benchmarking and information transfer effect,having the introduction of a risk compensation mechanism, ensuring the stability ofvegetable prices, production and supply, finally constructing a vegetable productionand marketing system of effective competitive and vibrant.The innovation of this article may be reflected in the research content andresearch perspective. There is rare academia systematic study of vegetable productionand marketing system and local government’s role in the entire system of vegetableproduction, distribution, sale. This study can be a supplement and provide a morecomprehensive reference for local governments to participate in specific practice ofvegetable production and marketing system building.