Constructing Agricultural Products Logistics System to Ease Inflationary
Pressure
Xing-guang Li, Hai-juan Zhou, Tie-sheng Wang
School of economics and management ,Hengshui University, Hebei
(Leexingguang@163.com)
Abstract - Sophisticated logistics system will effectively
reduce the terminal price of the goods. The existence of the
enterprise since for logistics, cold chain imperfect, inefficient
distribution, lack of information, asymmetric information,
and many other issues lead to China's social logistics costs,
especially in the high logistics costs of agricultural products
and fruit and vegetable products, and also result in China’s
CPI rising.
From the characteristics of the agricultural product
logistics and the development of the current situation,
combined with the logistics of the actual situation of China's
agricultural products, this article constructs the mode of
operation of agricultural products based on the theory of
supply chain logistics, and gives the policy suggestions of
how to effectively improve the logistics system of
agricultural products, agricultural products circulation and
reduces the circulation cost, slow inflation pressure .
Key words - agricultural products logistics; supply
chain theory; operation mode
I.THE OVERVIEW OF AGRICULTURAL PRODUCTS
LOGISTICS
Taking agricultural products as the core, the
agricultural products logistics refers to the organic
combination of the entity flowing from producer to
receiver and the involving technology, organization,
management and other basic functions. It consists of a
series of links, such as agricultural production, purchase,
transport, storage, loading and unloading, handling,
packaging,
distribution,
circulation
processing,
information activities, and etc. and realizing agricultural
product appreciation and organization objectives in the
process. [1]
Agricultural product logistics has three big
characteristics:
A. large quantities and more varieties.
According to our country 2011statistics show: grain
output reached546471000 tons,5961000 tons of cotton,
oil plants 32301000 tons,214011000 tons,110789000 tons
of fruit sugarcane,9296000 tons of beets,1475000 tons of
tea etc..
___________________
Subject source ： Hengshui University teaching reform issues
(jg2012056).
Li Xingguang (1981 -) male Hebei Zaoqiang Hengshui University
research direction: logistics system engineering
Zhou Haijuan (1981 -) female Hebei Qian'an Hengshui University
research direction: Marketing Assistant
Wang Tiesheng (1965 -) male Hebei Hengshui Hengshui University
Professor research direction: the social and economic
B. high demanding
Different from the industrial products, the
agricultural products are living animal and plant products,
so the agricultural product logistics especially demands
green logistics to achieve no pollution, no deterioration;
owing to the agricultural product prices low and large
volume, low operation cost must be accomplished; due to
the circulation of agricultural products to ensure and
increase the income of the farmer, in developed countries,
agricultural products and agricultural products processing
production value is l:3or 1:4, and our country is 1: 0.8,
the development of large space [2].
C. difficult in material flowing
It manifested chiefly by packaging, transport,
storage hard , difficult to store. Because the agricultural
products are perishable, certain measures are necessary in
circulation in order to ensure that the products meet the
quality requirements to enter the field of consumption.
This resulted in its infrastructure, storage conditions,
transportation, technology and other means to have
corresponding organization for applied.[2]
II.THE CURRENT SITUATION OF AGRICULTURAL
PRODUCT LOGISTICS IN CHINA
Logistics in our country starts late, the foundation is
weak, the amount of the agricultural products logistics is
huge, supply is dispersed, cost is very high. After the
development in recent years, China's agricultural product
logistics system is gradually improving, but is still in the
stage of practice. There are still a lot of self-produced
self-marketing and hawker small and primitive
agricultural products logistics form. At the same time, the
cold chain of China's agricultural products complexes
with lower coverage, circulation loss is large, a certain
extent increase the circulation cost, and
cannot meet
the needs of consumers in general. Embodied in the
following aspects:
A. poor infrastructure, low levels of information
technology.
In China, the construction of wholesale markets for
agricultural products, agricultural products storage,
transport conditions and tool, the information network
platform and other public facilities are lagging behind,
resulting in high cost of the circulation of agricultural
products circulation and low efficiency. Being the
small-scale intensive cultivation of business, the way that
farmers of our country acquire the agricultural production
information mainly rely on traditional methods, related
logistics information network system is not perfect, the
serious information asymmetry increases the risk of
agricultural products.[3]
B. the cost lag the agricultural products cold chain
development
With the improvement of living standards,
consumers pay more attention to the freshness and variety
of the fresh agricultural product. Although the cold chain
transport is one of the most important links in
guaranteeing freshness and varieties of fresh agricultural
product in the circulation, the cold chain logistics system
has not nearly been established yet, the coverage rate of
cold chain of fresh agricultural products is less than two
percent. Cold chain transport deficiency may also cause
bigger loss in the transport, increasing the logistics cost.
C. current node, produce and sale is out of line, prices
fluctuate wildly.
Nowadays, it was taken as usual that "the farmer
found that the food is hard to sell, the residents felt that
the food is expensive, and the brokers said they hadn't
earn money”. At present our country agricultural product
circulation system remains around the "agricultural and
sideline products wholesale market", agricultural products
pass from producers to consumers through four links
including from farmers to the wholesale market, transport
from production to marketing, from the wholesale market
to retail terminal, there will be the occurrence of
packaging costs, fuel costs, the market management fee,
freight, entrance fee, overload fines, etc. in this process,
ultimately reflected in the terminal 's vegetable prices
rose sharply. Therefore, to establish the system of the
agricultural product logistics, reduce the links from fields
to the common people table segment.
extensive management level, relying on science and
technology innovation to promote the industrial added
value is not obvious. And the western developed countries
are to accelerate the innovation of agricultural technology,
using the" Internet of things" and other techniques to
enhance the labor productivity.
In addition, a problem that cannot be ignored
remains in the construction of agricultural products
market, these serious problems are plaguing China's
modern agricultural products logistics industry
development.
III.THE AGRICULTURAL PRODUCT LOGISTICS
OPERATION MODE BASED ON SUPPLY CHAIN
THEORY
From the perspective of supply chain theory,
logistics cooperation organizations can improve logistics
efficiency and avoid the higher organization cost. Pure
market mechanism in reality is influenced due to the
factors, such as technical conditions, geographical
conditions, market risk, repeated transactions, transaction
costs increase, market efficiency discounts [2]. Logistics
alliance formed through the market organization to reduce
free market transaction cost is a kind of system form.
Logistics operation pattern constructing based on the
theory of supply chain of agricultural products is the
changes of agricultural product transaction way, means or
procedure, its power is to save the costs of the logistics
organization of agricultural products trade and internal
management external transaction, to improve the overall
efficiency of the logistics of agricultural products.
The structure of agricultural product logistics
operation mode based on the theory of supply chain:
products logistics service; agricultural products
market is the sale of wholesale market.[5]
Agricultural Cooperation Organization plays the
frame supporting role in the whole system. It needs to
complete the two aspects of work:
D. Agricultural product circulation industry is still in
Fig 1 the agricultural product logistics operation mode based on Supply Chain Theory
1. Establishing contact with farmers. In the scale of
economy, developing a certain number of farmers into
agricultural cooperation organization, collecting farmers’
demands regularly for logistics information, and be
responsible for information integration and analysis.
2. Establishing contact with the third party logistics
enterprises. Picking logistics enterprise according to
certain standards, keep the contract, and supervise the
performance of the agricultural product logistics
enterprises.
The advantage of supply chain of agricultural
products logistics operation mode is based on the
theory.
The model brings many beneficial effects for the
parties, and can expand agricultural production scale and
diversity management, achieve economies of scale and
scope economy effect.
The agricultural product logistics system is the
supply chain whose core is an agricultural cooperative
organization, its core enterprise (Agricultural Cooperation
Organization) goal is to make the farmer average
minimum logistics cost, it stands from the farmer's point
of view. The relationship of the third-party logistics
companies and agricultural collaboration is contractual,
through information collection and operations integration
of the agricultural cooperative organization, logistics
demand and supply of parts into a whole, improving the
efficiency of logistics operations and greatly reducing the
average cost of logistics.[6]
IV.THE PROPOSAL OF OPTIMIZING
AGRICULTURAL PRODUCT CIRCULATION
Through constructing the agricultural products
logistics system based on the theory of supply chain, we
can effectively realized that agricultural production and
economies of scale, reduce current cost, and effectively
alleviate inflation pressure. Specific recommendations are
as follows:
1. Play the government's regulating and controlling
role.[7] The government management should take it
serious, set up a special leading group, lead to clear the
agricultural product circulation channel, establish a highly
efficient, safe, expedite the modern circulation system of
agricultural products in 3 to5years.
2. To build the logistics of agricultural products
trading center in larger city, innovate in technology,
management, supply and demand, platform construction,
and other aspects comprehensively [8], carry out
e-commerce, traceability, and trade crossing the
transaction time, regional distribution. At the same time,
the government should reduce the field of agricultural and
sideline products trading threshold, the tax relief, to
large-scale logistics enterprises give on policy tilt.
3. Establishment of agricultural early warning
system. Government departments can make general
agricultural product price forecasting index according to
season and regional production, planting area and oil
price, means of production, the price of labor, form an
integrated, for farmers to provide reference, so as to
ensure market supply and price stability.[9]
4. To train a batch of bibcock enterprise, drive the
development of agricultural products[10]. Make more
farmer agent active in field edge of a field, become a
farmer and logistics between the go-between; promote
agricultural products modern logistics technology
innovation ability, improve the construction of Internet of
things, cold chain infrastructure construction, let
consumer eat to be at ease, fresh agricultural products.
V.SUMMARY
According to the characteristics of the agricultural
product logistics, the logistics of agricultural products in
our country 's present situation, introducing Agricultural
Cooperation Organization ( Logistics Alliance ) as the
core enterprise in supply chain of agricultural products,
based on the theory of supply chain of agricultural
products logistics operation mode, for the development of
agricultural products logistics mode to provide reference
model, and the control of agricultural products price
inflation pressures gives policy suggestions. With the
development of modern logistics theory and agricultural
products are as soon as possible, and to establish a highly
efficient logistics operation mode of great significance.
REFERENCE
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Modern agriculture, 2007.8
[4] Huang Yong. Problems and Countermeasures of China's
agricultural products logistics development. Guangxi Social
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[5] Wang Zhongwei. Based on the agricultural products
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China Logistics and Purchasing, 2009.07
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agricultural products. 2005.02
[7] Xu Asia. Poor logistics of agricultural products analysis and
improvement of logistics technology. 2006.06
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[9] Fan Ping-mei. On the logistics siege "causes and
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[10] Fang virtual logistics center construction management
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