Research On Value Chain Financing Of Apple Industry In China

Apple is a typical labor-intensive agricultural product. Fragmentation apple cultivation characteristics, growers planting costs continue to increase. At the same time, growers operating dispersion is difficult to have better economies of scale. Promoting the development of Apple’s industrial management, financial support is indispensable. This requires financial services covering from the traditional farming to every link of apple processing, sales and research and development of science and technology. But now the apple industry is still facing a serious shortage of funds and financing difficult problem. Agricultural value chain financing is the subject of the value chain to provide services linked to each other, provide adequate and even financial services value chain for all participants, making the whole value chain has sufficient capital supply.Qixia apple production ranks first in Shandong Province. By analyzing the problems of Qixia financing, it found that the fruit growers are difficult to get credit support from formal financial institutions. Apple production is decentralized and small size. Apple production has a strong regional and cyclical, so it has a special request for credit. Qixia Apple financing problems related to government financial support for agriculture and credit mechanism of financial institutions. It is also closely related to the apple production characteristics and guarantee farmers and agriculture-related mortgage system for SMEs.Based on field research in Qixia district, it found that relying on the whole value chain, value chain financing increased cash flow of farmers and enterprises and relieved the funding gap. At the same time, financing members strengthen ties with financial institutions that will reduce the regulatory costs. It will promote the production and development of Apple’s enterprise. The empirical analysis on the influencing factors of Qixia apple industry value chain finance focuses on the factors which affects apple growers’involving in the value chain financing. It concludes that the planting scale, risk preference, default compensation provisions and other factors have a significant impact on the value chain finance. Finally, taking the Andre Juice Company as an example, it makes a further illustration on the operation process and advantages of value chain financing.