Study On The Price Forming Mechanism Of Raw Milk In Hohhot

As the city of milk in China, Hohhot’s dairy industry cannot develop without a huge amount of raw milk with high quality. The quality and the safety of raw milk are closely related to the dairy farmers, and have a direct impact on consumers’ demand and confidence of dairy products. Therefore, developing a reasonable price of raw milk and developing a sound price forming mechanism of raw milk is very crucial for the entire dairy industry and beneficial for everyone in the dairy industry chain. This thesis used the method of qualitative analysis, and used the price structure of raw milk as the entry point to analyze the influencing factors which may result in raw milk price’s fluctuation. On this basis, I put forward my own views of how to develop and manage the price of raw milk combined with the deficiencies under Hohhot’s price forming mechanism of raw milk. This thesis has the following contents. Firstly, the price of milk is composed of the costs of production and profits. Secondly, the price of raw milk is influenced by many factors such as the organizational models of dairy industry, feed price, the supply-demand relation, the value of money and international price of raw milk. At last, combined with the actual situation in Hohhot, I proposed several measures and recommendations for building a sound price forming mechanism of raw price.