| In recent years, the price of raw milk changed frequently in Heilongjiang Province, not only damaged the interests of farmers seriously, but also affects the sustainable and healthy development of the dairy industry in Heilongjiang Province. Highly fragmented dairy farmers and dairy processing enterprises relative concentration of industry characteristics, making the supply of raw milk market in Heilongjiang Province is close to perfectly competitive market structure, the market demand is oligopolistic or monopolistic structure, this asymmetry leads to dairy farmers in the transaction only could be a price taker. Meanwhile, the majority of dairy farmers dispersed does not have the ability to withstand market risks, their decision to focus only on short-term benefits, reflecting the face of price changes has a consistency that is expanding the scale of farming when prices rise, reducing input prices fall even sell cattle, slaughter of cattle downsizing. Also, because the impact of raw milk produced by cows growth cycle, adjusting production takes time and can not be made immediately reflected on the price, farmers affected by cognitive limitations of the decision-making ability is difficult to grasp the rhythm of the market, the price of raw milk is always in fluctuating up and down.Many factors that have an impact on the price of raw milk, but the essence remains the price formation system of internal demand action results. On the one hand, with the rapid advance and improve the income level of the pace of urbanization and increasing recognition of the nutritional value of dairy products and consumer preferences, consumer demand for dairy products of significant growth, directly contributed to the rise in dairy prices, thereby affecting the increase in the price of raw milk. On the other hand, corn, soybean meal and other feed prices, rising cost of breeding cows affected breeding efficiency, production and supply of raw milk must fluctuate, causing changes in the price of raw milk. Meanwhile, with the growing international trade in dairy products, the international market prices gradually become another important factor affecting the price of raw milk.In this study, first by Heilongjiang Province raw milk price parity, the difference analysis, the fluctuation of raw milk and feed price ratio and frequent volatility, indicating that farmers income instability; smooth milk and raw milk spread changes, reflecting the dairy processing enterprises for profit control ability. After the price of raw milk factors theoretical analysis and empirical analysis of various factors, estimates of the impact on the direction and impact of the size of the factors for the government to develop a "reference price" and "government guidance" provided an important basis and make recommendations to ease price volatility of raw milk in Heilongjiang Province, in order to protect the income of dairy farmers. |