Strategies to Improve the Efficiency of Chinese Agricultural Products Circulation

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International Conference on Economic Management and Trade Cooperation (EMTC 2014) Strategies to Improve the Efficiency of Chinese Agricultural Products Circulation De-Shu KONG 1,2,a, Cheng-Bo HU 3,b,* 1 Wuhan University of Technology, China 2 Shenyang Supply and Marketing Associated Company, China 3 Liaoning Provincial Department of Education, China a email:853106030@qq.com, b email:174068598@qq.com, *Corresponding author Keywords: Improve, agricultural products, circulation efficiency, countermeasures, research. Abstract. Circulation of agricultural products is a key factor in the development of the logistics industry. How scientific planning is to promote good circulation difficulties in the further development of agricultural products, but also to the interests of the people and the sustainable development of agriculture and rural areas. This paper analyzes the efficiency of distribution and its constraints, and improve distribution channels from the circulation market development, technical support circulation, distribution and circulation of information services to support other aspects of the policy for how to improve the efficiency of agricultural products circulation puts forward relevant suggestions. Introduction Logistics industry is the economic and social development of basic industries, in the post-crisis era background, the development of the logistics industry in the promotion of economic development mode, adjust the industrial structure, improve the competitiveness of agriculture and so have a positive effect. With the improvement of the level of economic development, consumer demands for agricultural products evolved from the pursuit of quantity to the pursuit of quality stage. Circulation of agricultural products is a key factor in its development.how scientific planning is to promote good circulation difficulties in the further development of agricultural products, but also to the interests of the people and the sustainable development of agriculture and rural areas. As China's comprehensive social and economic development, and most agricultural products has grown from an insufficient number of full surplus, consumers began to pursue product quality and species diversity, circulation status in the agricultural industry chain is becoming increasingly important, circulation efficiency become tradable Research an important issue. Circulation Efficiency Analysis The planned economy period, the domestic circulation of commodities research for quite some time is the Marxist economic theory dominated emphasis on the value-added products, pricing issues, few people how to study the effect of product flow and circulation problems. In recent years, with the gradual establishment of the market economy, how to achieve rational and efficient allocation of product market regulation in the circulation of the issue has become an important research topic. Since the establishment of the earliest foreign market economic system, specifically for the consumer from the producer to the circulation process of research products are more efficient flow of circulation is an important indicator of the effect of the English expression circulation efficiency are many, such as "marketing efficiency "," market efficiency "," allocative efficiency "," operational efficiency"," pricing efficiency" different in English corresponding to different meaning, taking into account the country to understand the flow of the process is mainly the product reaches the consumer from the producer, so this paper uses "marketing efficiency" meaning. 2014. The authors - Published by Atlantis Press 540

Marketing efficiency can generally be divided into two types, one for technical efficiency, also known as operational efficiency, the other is the pricing efficiency, also known as economic efficiency. Technical efficiency is the effective implementation of the circulation functions, or improved circulation facilities and tools to produce efficient, improve technical efficiency is aimed at the same time as much as possible to get more output, technical efficiency related to packaging, processing, storage, transport and operational efficiency of other tradable activities, specifically including the ability to improve product quality or reduce the loss of new packaging methods and improve the storage, transportation, loading and unloading equipment used, can save labor and improve the efficiency of the new labor such as the use of the machine or using the new operating mode. Pricing efficiency refers to the process of marketing, product prices have increased the extent of freedom and can accurately reflect the value added of the product itself, as well as how to make the marketing and distribution of the different stakeholders accept the need to discuss is the product from the producer to the consumer or from a transaction level to reach another level of price changes reflect the transaction value added accuracy, precision and speed of change, that is, that with minimal resources outputs the maximum amount of product, referred to here inputs and outputs can be expressed in monetary units, due to the number of its price and output level of the amount of resources used, whereas the price is reasonable manner decisions, and compete in the market environment. On the issue of the circulation of agricultural products, while manufacturers can use the most advanced technology to the flow of products from the place of origin to point of consumption in order to meet the needs of consumers, but from a cost point of view may not be cost-effective. In summary, the analysis of the efficiency of distribution in order to better study the circulation, to clarify the factors affecting the loss of circulation, so that product quality and quantity delivered to the circulation of the chain terminals, improve consumer welfare. The efficiency of agricultural products circulation constraints At this stage, our priority in the development of agricultural product wholesale market as the core of the supply chain, taking into account the development of other types of supply chain flow mode, can reduce distribution costs, shorten the time of circulation, enhance market integration, significantly improving the efficiency of agricultural products circulation. However, to achieve this goal, there are many constraints. The key challenge of opening up the key is to strengthen endurance, strengthen endurance is stepping up the completion of China's market economy system integration and improvement, improve our quality and competitiveness of the economy fundamentally. Market liquidity improved, certainly by reducing the cost of collecting information, or due to economies of scale, increased trading volume, reduce distribution costs, which can significantly reduce marketing costs. For transition countries generally believe that such rules and institutional actuation significance is far greater than the effect caused by the open. The study found that China's current circulation of inefficient, high distribution costs, thus weakening the production cost advantages. As for the labor-intensive agricultural products, high marketing costs, distribution big difference is even more pronounced. Circulation of the high cost is a direct factor affecting exports. Another study showed that compared with seasonal variations, significant differences in prices of agricultural area of transport factors and institutional factors. Indeed, institutional restructuring and institutional change, to increase the circulation of agricultural products a lot of additional costs. Such as: the monopoly of state-owned sector makes high distribution costs; poor circulation system does not have the self-sufficiency led to over-investment in the region to achieve self-sufficiency, driving up costs; rice bag governor responsibility system is not conducive to deepening regional division, exacerbated regional supply and demand contradiction; cargo transport and logistics services are strictly regulated, and so on. These constitute a challenge to the agricultural logistics. As a result, our failure to produce its full advantage. Challenges and bottlenecks in the system impact, but also reflects the circulation system and management innovation lag: Incomplete functions and structures, functions and institutions imperfect overlap exist, can be effective planning, service, supervision integrated operation management mode 541

did not set up, with the development of productive forces contrary to the sector has yet to be canceled. The current quality of agricultural products safety testing, for example, there are three dangerous tendencies: the first is through the consumption of food safety and soared; second is to use food quality and safety testing, new rights to compete among departments; third is to use with food safety issues in the domestic market barriers set up between regions, and not elsewhere product to enter. These three phenomena now have outreach expand. On the growing Chinese market and the nearby coastal Asian markets, distribution inefficiencies and high costs make Chinese producers in inland and coastal areas are difficult to compete with foreign producers. Only a significant reduction in distribution costs, inland agricultural and livestock products is possible more people into the coastal areas, which will reduce transportation difficulties goods and agricultural and livestock inputs, otherwise the widening income gap between regions. Obviously, improving domestic circulation is not only realistic choice to deal with international competition, and in the future for a long period of time, you can also ease the pressure of food security, farmers' employment, income faced; short, the circulation system of agricultural innovation and efficiency issues, can not be regarded as merely a means of economic growth, but should be regarded as the source of a market economy agricultural economy chain. Improving the efficiency of Chinese agricultural products circulation countermeasures Improving distribution channels.one is to increase the degree of organization of the main circulation core, accelerating the development of modern circulation subject. Different for different subjects circulation circulation, specific measures should be different, but the degree of organization and improve productivity are consistent. To cultivate agricultural cooperative organizations of farmers cooperatives, farmers 'marketing cooperatives, farmers' associations, etc., to encourage large distribution, agro-processing and distribution companies lead the marketing cooperative organizations, guidance and support its rapid healthy development, to improve and enhance its market position and market competition force. Encourage and regulate the circulation of agricultural enterprises conditional extension chain, the implementation of supply chain management and operation of vertical integration, to achieve agricultural "production, supply and integration." Second, the fundamental goal of agricultural modernization and power, to ensure supply stability on the basis of supply and demand, to maximize the rate of commercialization of agricultural products. Agricultural modernization is to improve agricultural productivity to sustain the fundamental, but also the fundamental goal of China's agricultural development, not only to ensure that the national supply of agricultural products, an important guarantee for the stability of supply and demand, but also agricultural products to enter the market at a higher rate and efficient completion of the commercialization circulation source of power. Thus, there are differences between different regions to stabilize or improve their agricultural commercialization rate, thus contributing to continuously improve the efficiency of agricultural products circulation. The third is to reduce the link, cost savings for the purpose of agricultural supply chain management, focusing on promoting the improvement and innovative distribution channels. The current biggest problem is part of our agricultural products circulation channels, high costs and uneven distribution of benefits, and the reference to international experience, the implementation of supply chain management of agricultural products circulation after all, a good move and solutions. Key to implementing agricultural supply chain management is how to appropriately handle the relationship between the core business and circulation of agricultural products wholesale market, and re-build the entire agricultural market system, eventually forming a de facto "core business" dominant pattern. Strengthening the construction of the circulation market.one is to increase the circulation of agricultural inputs and infrastructure construction, improve the related infrastructure and supporting facilities, and thus constantly improve agricultural market system for the wholesale market to expand their business functions to create favorable conditions and lay the foundation for a strong impetus to upgrade a number of radiation wide face of large agricultural wholesale markets and farm produce processing and distribution center.second, the wholesale produce and farmer's market as the core platform for innovative ways to promote agricultural trade, step by step, there are plans to promote 542

the sale and trading of electronic transactions, information technology, in order to reduce transaction costs and improve transaction efficiency, and constantly enrich and improve agricultural markets systems. Third is agricultural chain management, e-commerce and the futures market, vigorously develop modern methods of distribution of agricultural products. Guide the industrialization of agriculture leading enterprises, wholesale distribution companies and large-scale agricultural development agricultural chain management, establish a new, highly efficient agricultural marketing network. To encourage farmers to produce specialized cooperative economic organizations established brand outlets stores in the city. Actively create conditions for the establishment of an online trading platform, or relying on the existing e-commerce platform to explore in agricultural e-commerce. Steadily push forward the development of agricultural futures markets, rich agricultural distribution channels and business models. Ensure a strong flow of technical support.technical support of core agricultural products circulation of agricultural products of modern logistics equipment, research and development and application of technologies and management models, mainly around the circulation of "four streams" (logistics, business flow, information flow, business flow) packaging, storage, warehousing, transportation, logistics management and other technologies. Which is the top priority chain logistics, supply chain management is to achieve an important direction for agricultural logistics management of change. Need to do the job complicated and quite difficult. Only two of its core mission, namely the role of government in infrastructure and support services planning, construction, and played a leading role in the market chain logistics enterprises. Second, the logistics management for change, that should be the direction of supply chain management of agricultural products to the market, enterprise development as the basic principle, level, moderately differentiated implementation of agricultural supply chain management. Strengthen the flow of information construction of agricultural products.first, make full use of the existing status of traditional media including television, radio, newspapers and other publications to continue in agricultural information dissemination " to shine." The second is to develop and expand the computer, the Internet, wireless communications, networking and electronic media and other modern communications technology application paths and patterns, continue to broaden and upgrade the ways and means of agricultural information services. Third, continue to strengthen coordination and interoperability of official government websites and other agricultural services within the system to improve the quality of its services, and actively cultivate large agricultural sites, strengthen agricultural market information collection release, improving the agricultural online exhibition, expanding agricultural online publicity, promotion efforts. Fourth, the government information service system to increase agricultural investment and construction, and to play a leading role, but also to guide and encourage the relevant core distribution companies, large wholesale markets, news media and nonprofit organizations to actively participate in agricultural information services work to achieve social, professional and diversification of agricultural information services.fifth, actively create conditions to provide training and learning opportunities related to the main flow of farmers, brokers, etc., in order to constantly improve their own quality, to enhance its information gathering, analysis and processing capabilities, to enhance the resilience of the market circulation of the main basis. Improve circulation to support policy. First, the importance of agricultural products circulation planning, strengthen government guidance, market and promote the rational distribution of related infrastructure, to achieve coordinated, orderly and healthy development. Second, improve the circulation of agricultural products related to fiscal policies, and strengthen financial and policy support efforts to increase agricultural lending, lending a reasonable grasp of rhythm. Third, the creation and circulation of agricultural products suited to modern transportation and logistics environment, providing favorable conditions for improving the efficiency of agricultural products circulation. The fourth is to strengthen supervision and improve the regulatory mechanism, improve relevant laws and regulations, and efforts to achieve system innovation. Fifth, adhere to market-oriented basis, give full play to the "national team" The role of supply and marketing cooperatives, and vigorously promote the circulation system of agricultural innovation, and continue 543

to establish and improve relevant laws and regulations, to provide agricultural products circulation system and legal protection. Conclusion This paper analyzes the efficiency of distribution and its constraints, and improve distribution channels from the circulation market development, technical support circulation, distribution and circulation of information services and other aspects of policy support, proposed to improve the efficiency of agricultural products circulation related suggestions. References [1] Guo Lihua, Zhang Mingyu. The general idea of agricultural products circulation system innovation [J]. Logistics Technology, 2006,26(2):36-39. [2] Yang Ruilong, Yang Qijing. Stepwise progressive institutional change models - On the role of local governments in our system changes in [J]. Economic Research, 2000, (3) :26-32 [3] Alan Randall. Resource Economics [M]. Shanghai: Commercial Press, 1989, pp. 281-304. [4] Samuelson P A,Nordhaus W D. Economics (1948)[J]. New York: MC Graw-Hül, 1976, 199-214. [5] Barzel Y. Economic analysis of property rights[m]. Cambridge University Press, 1997. [6] Kim S K, Hsieh P H. Interdependence and its consequences in distributor-supplier relationships: a distributor perspective through response surface approach[j]. Journal of Marketing Research, 2003, 40(1): 101-112. 544