Analysis On Soybean Economy Utility And Industry Security Utility After China′s Entry Into The WTO

Soybean, originated from China, is one of the most important cereal crop as well as oil crop, and the biggest origin of fodder. Before the world war two, China played the dominant role in the soybean world market. But the aspects of soybean in China including plant, processing, trade and quality are becoming worse afterwards, therefore the utilities of the soybean economy and industry security are worrying. Farmers benefit from soybean planting less than before, the domestic processing plants yield less and earn less, the trade deficits of soybean are increasing promptly, the planting area of soybean is decreasing, the capacity of domestic soybean to meet the needs of popular consumption, foreign capital entered in and play a leading role in domestic soybean processing industry, genetically modified soybean food threaten customers’ health. The Utilities of the Soybean Economy and Industry Security are a concern.This paper tried to analyze comprehensively the utilities of soybean in China from planting, processing, trading and quality aspects viewing from economy and industry security, which is significant to know the China soybean comprehensively. The utilities of the soybean economy and industry security were empirically analyzed based on data with the method of multi-attribute utility theory, the results showed the utilities were declining, and the drop in industry security utility was greater than that in economy utility, but the industry security utility was more vulnerable。The decline in the utilities of soybean was inevitable with the reduction in arable lands and emphasis on the grain security, but much can be done. Under the condition of grain security, differentiation strategy including increasing per unit area yield and developing deep processing of soybeans may be the right strategy.