| With the improvement of people’s living standards, pork and processed products have become necessities of life, the elasticity of demand decreases, showing a rigidity characteristics that "consumer irreversible". As an important pillar of China’s agriculture and rural development, Pig industry has a positive effect to improve farmers’income, promote rural development and promote agricultural modernization. Due to the nature itself, the pig industry’s anti-risk ability is insufficient. For developing China’s pig industry, it is inevitable that to promote the pig industry vertical collaboration. Pig industry composes with production, processing, marketing and so on, the farmers of the production processes link is scattered and the relationships of all links are loose. Against China’s actual conditions, we face a problem is How to strengthen the extent of the pig industry vertical collaboration and to improve the competitiveness of the pig industry.As a important province of pig production, Henan’s pig industry is in the stage of restructuring and development of scale and standardization. Studying the vertical coordination mode of pig industry and identifying problems can provide the basis for future policies to promote industrial restructuring and upgrading. In this study, we study the transaction cost theory and the industrial organization theory, based on a full analysis of the status quo in the vertical cooperative mode and pig industry of Henan. Basis to farmers, we have a theoretical analysis of the pig industry vertical collaboration’s structure and performance, and use of ROI to compare the performance of different vertical collaborative model. Finally, the study analyzes the factors for farms to select the different vertical cooperative mode use of multi-choice model. The following conclusions:(1) The mainly vertical coordination modes are market transactions, sales contracts and production contracts in Henan. The farms who have the younger of household, the shorter of culture time, the higher of the education level, the more of money invested, the more of the number of the breeder and the more of technical adviser, tend to choose the form of production contract. The farms who have close vertical coordination mode generally have a greater scale than half tight or loose collaborative model, and also have a relatively concentrated and stable scale.(2) The performance of the close vertical cooperative mode is better than the loose. Since the formation of a "risk-sharing, equal opportunity," risk has been effectively transferred. So the performance of the production contracts is best, the ROI fluctuation of the market transactions is biggest. So the production contract model is superior to the sales contract model, the sales contract model is better than the market trading patterns.(3)Transaction costs affect the farmers to choose different vertical collaborative models. Under asset specificity indicators, there is a significant positive correlation between pens area and investment funds with the selection of vertical coordination mode; Under transaction uncertainty indicators, there is no effect between householder age, educational level and enjoy the policy with the selection, and there is a significant negative correlation between farming experience and technical risk with the selection, and there is a significant positive correlation between information obtained capabilities, financial risk and disease risk with the selection; Under trading frequency indicators, there is a significant positive correlation between pig slaughter and the selection.Finally, for the situation of Henan, giving suggestions:through issuing government policies to guide the pig industry to develop for closely vertical collaborative model; exploring rural financial development, increased funds to support the pig industry; specification pig veterinary market, increasing farmers farming techniques; promoting rural infrastructure construction, improve information exchange platform. |
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