Supply Chain Vertical Integration For Food Safety Impact Study Under Punishment Mechanism

In the report of the 19 th National Congress of the Communist Party of China,General Secretary Xi Jinping proposed "implementing a food safety strategy to make people eat with confidence" and the safety on the tongue has risen to the height of national strategy.Throughout the current situation of China's food safety,frequent food safety accidents and food safety problems have emerged endlessly,seriously endangering the lives of the people,affecting the credibility of the government,and solving food safety problems is an urgent task.This article is based on the study of relevant literature at home and abroad,from food and food safety,food safety.The concept of trust property attributes,etc.,to study the structure and characteristics of the food industry supply chain,and explore the relationship between the vertical integration degree of supply chain and food safety.Around this core issue,several related subjects affecting the supply chain and factors affecting food safety are introduced: upstream raw material suppliers,downstream processing producers,consumers,and external regulators,and two dynamic game models under asymmetric information are constructed.One model contains only downstream processing producers(dominant supply chain integration),consumers,external regulators,and another model includes upstream raw material suppliers,downstream processing producers(dominant supply chain integration),consumer and external regulator.In this paper,the ex post facto accountability and punishment mechanism representing government supervision is introduced in both models,which illustrates the impact of the vertical integration strategy of the supply chain on food safety under the punishment mechanism.Further,the introduction of supply in the second game model The distribution of interests of upstream and downstream enterprises in the chain carries out game analysis on the strategic choices of upstream and downstream enterprises in the vertical integration of supply chain.Combined with the analysis of the above two models,it is concluded that there are other influencing factors only by strengthening the vertical integration of the food industry supply chain to fully improve food safety.The research results show that there are great differences between the upstream and downstream enterprises in the supply chain.The downstream enterprises occupy the “dominant” status,while the upstream enterprises are the “weak” sides of the two.The upstream and downstream enterprises only pay attention to the quality control of their own links.This is the main reason for the low quality of the products and the market failure.Relative to the distortion of corporate behavior that may be brought about by financial support,and the slowness of quality control technology improvement,starting from the institutional level,enhancing the effectiveness of external supervision,increasing penalties for quality negligence,and encouraging enterprises to improve quality control investment The use efficiency,taking a "real" level of quality control behavior.This led to four policy recommendations.First,do a good job in the top design of the food industry and strengthen supervision by government departments.Second,solve the problem of “funding difficulties and financing” in the food industry and strengthen financial support.Third,promote the balanced development of the upstream and downstream of the food industry.Promote the coordinated development of the industrial chain;Fourth,the pursuit of excellence,quality control details,so that the "artisan" spirit has become an industry trait.The model constructed in this paper is not limited to the analysis of food safety issues,but can also be used to explain the phenomenon of “unworthy and subtle” and “heavy form and light connotation” that are ubiquitous in different fields.