The Marketization Operation Of State-owned Policy Grain Companies

“A country seeks the people as the fundamental strength whereas people regard food as the first necessity.” The old chinese saying tells us how food weighs to both national economy and the people's livelihood. Food security is always a top concern of the governments all around the world where the grain enterprises which serve as the main body of the national grain reserves are mostly state-owned.As the most populous country in the world,China always regards food security as the priority among priorities.We have seen years of No.1 Central Documents focus on the issues related to agriculture and grain production.Decades of reform in the grain market circulation has structured the market into a two-camp model: the operational/commercial grain enterprises and the policy enterprises, in which the latter plays a core role in securing the national grain reserves. In the early stages, the policy grain enterprises enjoyed years of smooth operation in business when backed by adequate fisicalsupports. Now the golden days has gone and the rapid social development has brought up to those traditional companies new challenges including rising operational cost and labor cost, as well as new problems of how to survive and how to maintain a sustainable development. Therefore,it is vital to make way for innovation and upgrade the enterprise management concept, which means to find out some effective and feasible solutions for the policy enterprises to adopt a market-oriented management system.Taking Xiamen grain purchases and sales co., LTD as an example, through the construction of food wholesale market, establish food leading enterprises and so on these measures on the solution of the strong pertinence, provide feasible way for policy food enterprise market management.