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Pork Production in China -A Survey and Analysis of the Industry at a Lewis Turning Point -

ASEDP

No.77

Edited by Jimin WANG and Mariko WATANABE
Published in 2008

CONTENTS

Introduction
Chapter 1
1. The development course of hog production
 1.1 The slow development period before the reform (1949-1976)
 1.2 The accelerating period of China’s reform (1977-1984)
 1.3 The rapid development period (1985-1997)
 1.4 Structural adjustment period (1997-2006)
 1.5 Towards large-scale, standardization, and integration
2. Hog Production
 2.1 Pork production
 2.2 Regional arrangement of pig production
  2.2.1 Pig production has maintained a more robust momentum of development
  2.2.2 Regional changes are significantly different
 2.3 Large-scale hog production
 2.4 Cost-benefit analysis of live pigs operations
  2.4.1 Changes of pig operation costs since the 1990s
 2.5 Factors affecting costs of pig operations
3. Hog Integration Development Status and problems
 3.1 Development of China’s animal husbandry and hog integration
 3.2 Developing Mode of the Hog Integration
  3.2.1 “Company + Farmers” mode
  3.2.2 “Company + Base (Animal Raising Village) + Farmers” mode
  3.2.3 “Company + Association (Cooperative Organization) + Farmers” mode
  3.2.4 Commonwealth of hog farming, associations or cooperative organization modes
  3.2.5 “Operation Integration of Company Development” mode
 3.3 Main Problems of Integration Management
  3.3.1 Imperfect inner-integration distribution of benefits
  3.3.2 Ambiguous advantages of leading enterprises, the low integration
  3.3.3 Institutional factors affect the further development of integrated operations
  3.3.4 Policies are not implemented to support the integration of leading enterprise and organization
4. The main problems of China’s pork production industry
 4.1 Feed, labor, land and capital constrain pig industry in the long-term
 4.2 Prolonged backward production modes and imperfect infrastructure and technology
 4.3 Animal epidemics are under control as a whole, but they occurred frequently in some regions and the risk of major animal diseases still exists
 4.4 Residents’ demands for pork products become greater, but the safety and quality of pork products cannot be ignored
 4.5 Large-scale farmers have developed rapidly, but the treatment of the pollution cannot be delayed
5. Suggestions on promoting hog industry
 5.1 strengthen the policy support
 5.2 Speed up transformation of development mode
 5.3 Promote scientific and technological progress
 5.4 Strengthening disease prevention and control effectively
 5.5 Raising the level of safety and pork products’ quality
 5.6 Strengthening macro-control and early-warning
References


Chapter 2
1. Outline of the Hog Slaughtering and Processing Industry
 1.1 Industrial Organization and Pricing by Firms
 1.2 Regulations by “Qualified Slaughtering Spot” System
 1.3 Organization of the Industry
2. Observations from the Hog Slaughtering Firms Survey
 2.1 Main Findings
 2.2 Profile of the Surveyed Firms
 2.3 Marketing and Procurement channels and Prices
  2.3.1 Transaction channels
  2.3.2 Price Development
  2.3.3 Price Difference Between Jilin and Henan
 2.4 Demand: Poorly Differentiated Product and Localized Demand
  2.4.1 Product Types
  2.4.2 Distance From the Customer
 2.5 Supply: very Few Big Processors and numerous “Policy Qualified Factories”
 2.6 Strategies
3. Hog Price and Mixed Oligopoly: A Theoretical Analysis
 3.1 Mixed Oligopoly
 3.2 The Model
  3.2.1 The Consumer
  3.2.2 The Firm
 3.3 The Equilibrium
4. Summary and Conclusion
References


Chapter 3
1. Background and Vertical Coordination of the Value Chain
2. Review of Studies on Contract Farming – Qualitative Analyses
 2.1 Key Factors for Success
 2.2 Participation in Contact Farming
3. Evidence of Contact Farming on Farm Income
 3.1 Conditions for successful Contract farming
4. Evidence of Hog industry in Jilin and Henan province, China
 4.1 Characteristics of Surveyed Hog Firms
 4.2 Relationships with Contract Farmers
5. Concluding remarks
Reference


Chapter 4
1. Effective Three-Agro Demand for Financial Services
 1.1 Modernization and structural transformation in the agriculture sector
 1.2 Infrastructure construction in rural areas
 1.3 Urbanization of rural areas
 1.4 Rural non-agricultural sector development
 1.5 Development of logistics in rural areas
 1.6 Integration of urban and countryside
 1.7 Financial demands from village residents
2. Reasons for Insufficient Supply and Irrational Structure of Finance
 2.1 Imperfect collateral system and credit environment
 2.2 Insufficient innovation in rural financial services
 2.3 Bank outlets difficulty to survive in poorly developed, rural area markets
 2.4 Regulation and policies affect ABC’s influence over rural financial markets
3. Desirable Policy support for Rural Financial Development
 3.1 Innovating rural credit collateral and guarantee policies
 3.2 Setting up rural insurance mechanisms
 3.3 Promoting rural financial institutions’ cooperation and building financial service platforms
 3.4 Massive subsidies in special regions
 3.5 Improving rural social credit systems and building comprehensive rural financial service mechanisms
 3.6 Favorite fiscal and monetary policies for rural financial institutions
 3.7 Improving NPLs write-off mechanisms
4. Financial Institution and Hog Industry
 4.1 ABC and RRC as the main transaction partners
 4.2 Loan approved ratio is high
 4.3 Liquidity demand and investment demand
 4.4 Collateral and Guarantee


Chapter 5
Summary of the Survey on Hog Slaughtering and Processing Firms in Henan and Jilin pdf (55KB) / Jimin WANG, Sachiko MIYATA, Mariko WATANABE, Huaqiang SHI
1. Outline of Survey
 1.1 Survey Implementation
 1.2 Structure of the survey
2. Basic profiles of Firms
3. Marketing
4. Procurement
5. Transactions with Financial Institutions