Vegetable Abnormal Price Fluctuations Issues

The vegetable industry is an important part of China’s agriculture. China has now become the superpower of the world’s vegetable production and sales. The party and government have always attached great importance to the development of vegetable production is important,. The prices of vegetables have a important influence on the pocketbook of the farmers, one related to the people’s food basket, a major problem. Fluctuations in the prices of vegetables have increased uncertainty of farmers’ income and production decisions more difficult. Abnormal fluctuations of vegetables are an important factor for the healthy development of both a constraining vegetable industry, but also damage the interests of farmers and consumers. Clarify the abnormal fluctuation of prices of vegetables reason to explore the way to crack, have important theoretical and practical significance for the development of the vegetable industry, safeguarding the interests of farmers, to protect the people’s food basket.This paper selects a representative and typical of the two vegetables-garlic, cabbage, for example, study the main abnormal fluctuations in the prices of vegetables and solutions. This paper defines the concept of abnormal fluctuations in the prices of vegetables, some kind of vegetable adjacent the monthly or annual price rises or falls more than doubled, significantly different from the price volatility phenomenon usually called abnormal fluctuations of vegetables. The first overall study status and characteristics of the fluctuations in the prices of vegetables in China, and then using the case study method, from both theoretical and empirical analysis to explore the garlic cabbage abnormal price fluctuations mainly compare the similarities and differences of the two. The authors hope that through these two prices of vegetables abnormal fluctuations comparative study reveals the commonness and individuality vegetables abnormal price fluctuations and provide a reference for policy makers, the flow of the main and theoretical researchers.In this study, the price equilibrium theory, especially the "cobweb model" for basic analysis tool for abnormal fluctuations of the prices of vegetables such as garlic, cabbage, case studies, the combination of game theory and transaction cost theory. Through research found that, in recent years, garlic, cabbage prices have emerged abnormal fluctuations. Lead to both abnormal price fluctuations for different reasons.Idle speculation and the outbreak of H1N1influenza in garlic in short supply on the basis of common exacerbate the fluctuations in the prices of garlic, garlic prices therefore lead to abnormal fluctuations. Both the contradiction of Small-peasant-household and Large-market, and the absence of the Government are garlic abnormal fluctuations of deep-seated reasons. Circulation middlemen increasing of market forces on the one hand to expand the gap between producer prices and retail prices of garlic, on the other hand to bring the delay and distort price signals are objectively forced farmers difficult to enter circulation to share of the profits created by the circulation; These factors are further exacerbated by the fluctuations in the price of garlic.Abnormal fluctuations of the Chinese cabbage prices pushed up domestic prices of Chinese cabbage under the influence of the international prices of agricultural products conduction; then under the guidance of the cabbage high prices signal farmers blindly expand the planting area, the substantial increase in production of the cabbage, resulting in the cabbage serious oversupply, prices plummeted. Cabbage prices plummeted, horticulturists, under the guidance of the cabbage cheap signal, significantly reduce the acreage of cabbage to result in significantly reduced production of Chinese cabbage. Very few hold large cold storage cabbage supply organizations or individuals to monopolize the supply of Chinese cabbage, waiting for an opportunity to push up prices, leading to the price of Chinese cabbage again abnormal fluctuations.In this paper, the empirical research reveals an imbalance between supply and demand is the basic reasons for abnormal fluctuations in the prices of vegetables; fluctuations in the prices of vegetables, in turn, affect the relationship between supply and demand of the next phase of vegetables abnormal fluctuations in the garlic, cabbage prices. On the basis of the imbalance in the vegetable supply, capital for the fluctuations in the prices of vegetables is especially significant. The contradiction of small farmers and large market and the absence of the government is the deeper reason is that more and more vegetables dramatic price fluctuations.Based on the above understanding, this paper has proposed legislation to protect the basic stability of prices of vegetables, to establish vegetable financial subsidy system, the establishment of a public welfare the vegetables reserve cold storage to improve the degree of organization of farmers, improve the level of information services, remodeling agricultural products wholesale market, regulate the circulation order appropriately develop policy recommendations in six areas of risk markets of agricultural products.