Research On Welfare Function Of Enterprise Which Implement Food Traceability System

Food traceability system is one of the most effective ways that can prevent food safetyaccidents, ensure food safety and quality. Our country began to explore the construction offood traceability system since the year2000, to sum up experience, the construction progressis relatively slow, sluggish government support and policy decisions is the main problem. Somaking a scientific decision method for the support policy of the traceability food productionand consumption which based on the objective reality of safe food market in China becomesthe key.According to the people-oriented decision-making philosophy, the government’sdecision-making should be built on the basic of a decision-making model which to maximizethe value of social welfare. This paper makes the welfare function of enterprise whichimplement food traceability system as the research perspective, establishes a producer welfarefunction based on decision-making model, and launches a preliminary analysis based on thecase of88food enterprises in Chengchow. This paper constitutes a set of systematictheoretical system about the research on the welfare function of enterprise of Chinese marketon traceability food; the conclusion can provide effective decision-making scope ofconsultation for government. It also tentatively fills in the domestic and international researchblanks. The main work of this thesis is as follows:(1) Taking food enterprises in Chengchow as research objects, this paper reports theproject design, investigation method of96sample enterprises, and gives a brief descriptiveanalysis and a characterization of the collected data. In a preliminary study of the statisticalanalysis, the enterprise’s willingness to implement food traceability system has a certaindegree of correlation with the enterprise characteristics. The internal relations between thesample enterprise’s willingness to implement food traceability system and the enterprises’basic characteristics mainly embody in the characteristics of the manager, enterprise type,scale, quality, government action, the degree of vertical integration and the implementation ofquality certification system.(2) Aimed at the modeling of government’s public strategic decision-making, proposinga decision-making optimization model for the traceable food system. A welfare function ofindustry producers, whose parameters would be estimated by actual data gained from marketsurvey and statistics analysis, is established based on the decision-making model in concernof mean value. Finally, the decision-making procedure is converted into a convexoptimization problem, which is solved by inner point method. Investigation shows that theoptimal ratio of government subsidy to pay for the technology expenses of every unit is0.82%, which would lead to an11.72%increase of expected profit for the enterprise whosedecision is led by the traceable system and having large productive scale and high sales prices.Thus the optimal condition can be obtained in the implementation of the traceable system. Atthe same time, any enterprise with a suitable vertical integration rate and has passed some quality verification systems will find that it is easier to promote the implementation of thetraceable system.(3) Aimed at the element’s game relation in traceability system and the impact of foodtraceability technology on social welfare, using the model of vertically differentiation game,constructing the functions of producers’ surplus, consumers’ surplus and total welfarebefore-and-after implementing traceable system in food industry, estimating the relatedparameters based on the survey data and making a numerical simulation. Research shows thatif the unit cost is low, the implementing of traceable system will help to increase the highquality producers’ surplus, the consumers’ surplus and the total social welfare, and at the sametime reduce the low quality producers’ surplus. And that with increasing the food industryquality differences and quality cost differences, the high quality producers’ surplus showssignificant gradual increasing trend, and the low quality producers’ surplus shows graduallowering trend.