Research On The Influence Mechanism Of Producer Price And Retail Price Of Aquatic Products

In recent years our country has placed more importance on the construction of circulation. While during this process, some new phenomena occur, for example, consumers are facing higher prices of food, while original agricultural producers gain little benefit from this, but those middlemen, who link between consumers and producers, benefit a lot. And consumers seem to have widely put the blame on circulation process, even the policies government released are sometimes biased. As for aquatic products, demanding grows, price grows, similar situations come about.Thus, this paper investigated the producer price and retail price of aquatic products from two perspectives, to find out the relevant regularities, and make suggestions for policy-makers.First, the inner influence mechanism investigated the interaction between producer price and retail price. Through cointegration test found that there’s a stable equilibrium existed between the two prices. Then by using Granger test, found that the fluctuation of producer price caused the fluctuation of retail price, which means markup pricing theory demonstrated. Based on these results, error correction model was established to get the quantized equilibrium between those two prices and then its validity was examined.Second, the outer influence mechanism investigated the influences of some typical factors. During the circulation, there exists possible factors in every stage of the circulation process which may affect the prices. So here an economical model, based on firm’s production theory and the market supply and demand theory, was established to investigate the possible influence of factors in production stage, circulation stage and retail stage. By analyzing these elastic results, some conclusions were made.By considering both inner and outer influence mechanism together, some main results can be get, namely “the producer price and retail price of aquatic products should be considered as a whole with stable relationship”, “during the circulation process, the fishery producers have disadvantages”, “there are not only circulation factors which can affect these prices, but also production factors and retail factors”, “the terminal product supply is jointly determined by both producing and circulation”. And as last, suggestions were made for policy-makers according to those results and regularities.