Article of the Risk Pricing Mechanism of Order Agriculture Supply Chain

Headnote

KEYWORDS

Order agriculture,

Supply chain,

Price mechanism

ABSTRACT

In China, the most prominent problem of order agriculture is a high default rate of the order, at the same time, some elements including the immature domestic market economy system, the illegal system, original defects of order agriculture are hindering the development of order agriculture. The paper is to discuss the problem and put forward corresponding countermeasures. The paper falls into four parts. Part one points out the obstacles of our agricultural development at present. The serious problems are hindering the development of order agriculture. Part two analyzes order agriculture' s characteristics, which includes a strong uncertainty of agricultural output, agricultural production and operation in the production and operation of farm households, uncertain supply of agricultural products and the lack of sharing risk mechanism of supply chain. Part three put forwards the countermeasures for perfecting the risk pricing mechanism of order agriculture supply chain. First, we implement the strategic minimum purchase price. Second, we adhere to the market price. Market price is automatic regulator of uncertainty in the market, and it can share easing market risk, so the contract must adhere to the market price. Third, we establish a stepwise purchase and price mechanism. Part four is the conclusion of the paper.

In order to effectively perfect the sharing risk price mechanism of order agriculture supply chain, we implement the strategic minimum purchase price, adhere to the market price and establish a stepwise purchase and price mechanism based on the current situation.

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1 Obstacles of Our Agricultural Development at Present

Order agriculture also known as contract agriculture, refers to the a agricultural production and marketing mode that farmers arrange production in the process of agricultural production and operation, in accordance with the contract signed with the customer (agricultural) buyer. According to the situation of current legal environment, our peasant households adopt the traditional model of decentralized operation in reality, and the quality of farmers cannot meet the demand of orders for good development of agriculture. With the continuous development of order agriculture, the problems hindering the development of the order agriculture is increasingly obvious. At present, the most prominent problem of our order agriculture is a high default rate of...