Analysis Of Costs And Benefits About The Quality Tracing System Embedded In Vegetables Logistics Chain

China has been establishing the traceability management system and promoting the food tracking and tracing actively since2000. The pilot and exploration work of vegetable quality traceability system has started in Nanjing, Shouguang, Beijing and other areas gradually after2003. After that, the state has adopted a series of related policies. Up to now, with the support and encourage to the quality tracing system by government,enterprises began to established some IT and equipment companies. However, full traceability has not yet been effectively implemented in the vegetable industry, and stakeholders are still in a wait. This article is a study of the quality tracing system embedded in vegetables logistics chain from the perspective of costs and benefits, hoping to provide a reference for the participants of this system.In terms of theory about this study, there are logistics and supply chain theory, and elaboration of the concept of quality of retrospective. Second is the benefit analysis of quality traceability systems of vegetable. By understanding of the specific processes of the quality tracing system, author will list the input of the equipment and staff, so that we can measure the increased cost of this system. The application of quality tracing systems can reduce part of concerns for consumer with the product quality and safety of vegetables. For which consumers may be willing to bear the additional cost of using this system in vegetable, that is willing to accept the price increase. This paper examines the incremental willingness of consumers.The results show that the negative correlation between size of price incremental and the additional cost of using the system for vegetable products. When the size of the vegetable production base from500mu to5000mu, the cost increment per500g of vegetables fell from0.37yuan to0.12yuan. More low-priced vegetables, consumers are more sensitive to price increases.Weigh the costs and benefits, quality traceability system for1000mu of vegetable base, the cost of per500g of vegetables increased0.26yuan, this time less than1yuan/500g of vegetables embedding quality traceability system, consumers can bear the price increase the amount can not compensate for the increased costs of this system. If the base area of500mu, from the willingness of consumers acceptable, only the price of vegetables more than3yuan/500g can use this system, otherwise it will not be able to increase the income of producers. For an area of5000mu of vegetables, the quality tracing system increase a lower cost of0.12yuan/500g.For the price of greater than lyuan/500g kinds of vegetables, consumers willing to increase the prices can compensate for the increased costs of this system, thus increasing revenue.