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Sunday 7 October 2012

Agricultural Products How Good Things Can Sell a Good Price


Fresh vegetables with fish eggs, urban and rural taste different, so much difference, to simply blame the farmers market, the lack of basic ethical? Or the first back to look at our agricultural markets. Common table vegetables fish eggs, only eggs per kg of grass about foreign eggs to sell more than 2 dollars. And several other products, though, "soil" and "Ocean's" taste, quality does vary, but there is no difference in the market. Time-consuming, laborious more, taste, quality and better agricultural products sold in the market, not high prices, farmers keep their own food of course. Why not good things to sell high price? The most direct reason is a problem of information transmission. Live in a village, someone's species and breed, how kind, how dependent we all know, that is, farmers easy access to this information, the cost is very low. The city people do, is much harder to obtain this information, and can not see the countryside every day chicken, fish, pork, vegetable, feed any material, any fertilizer applied. Thus, only as "grass eggs", "foreign eggs," There are significant differences in the appearance of such products, in the city were easy to identify, distinguish, can sell the difference. While the application of manure and inorganic fertilizer in Brassica vegetables, the appearance of difference is not significant, it is difficult with the appearance of recognition, distinction, coupled with other information is also insufficient to differentiate between, we can only sell the same price. At present, China's agricultural market information delivered product quality, there are three broad ways: first appearance of the product, the second is the product brand, third is certification system. Production of agricultural products the traditional way of planting and breeding farmers, small scale, its production, so that they separate the implementation of brand management, and bear the corresponding costs, it is difficult. The existing pollution-free agriculture, green agriculture, organic farming certification system three or report must bear some of the certification cost, small-scale farmers for production purposes, it is not worth. It is because at the present stage of agricultural production patterns and market structure, let the farmers as producers, first of all to pay for the cost of transmitting information, not reality, so farmers abandoned altogether the idea of export quality products. Only by addressing the costs of information transfer payment, "not good quality agricultural land sale price" of the problem can be solved. This, we could hope that there will be more and more farmers to form associations for quality agricultural products brand management; we could hope that more and more certification bodies, can go to the rural household, in order to farmers to accept the price, providing certification services, but the core of the problem is still not here. Information transfer costs, is a component of transaction costs. Payment of transaction costs can be either or both the transaction to complete. However, when one or both of the transaction are unable or unwilling to pay transaction costs, and the resulting termination of the transaction will impact the overall welfare of society, on the payment of transaction costs, they should turn to as a public service and Public Affairs, as its priorities by the government and eventually be paid by the public finance, such as bridges and roads and so on. Until one day, market development to a new stage, as market players have grown and other factors, the market itself is already able to solve the transaction costs of payment, the government can, as in some developed coastal regions had withdrawn from roads and other infrastructure fields, from out in related fields. Urban and rural differences in this table for us to open such a thought: If 80 years since the last century, in order to establish a large market, invigorate circulation, at all levels, local government is duty-bound to build big traffic, is to reduce society provide hardware services, transaction costs, then, in order to support the relatively weak Chinese Agriculture, Chinese farmers are directly funded by the financial, agricultural and sideline products free of charge to provide a variety of quality certification services, information services, intermediary services, and brand management, is To reduce transaction costs in agriculture to provide software services. In this regard, at all levels, local governments is also duty-bound promising. On agriculture and farmers, since the vast rural areas in recent years, talk about service, fees and charges must be made, have resulted in farmers reduce agriculture transaction costs to both the hardware services, or software services, savings are a strong and urgent needs! To be specified, the Government provided free of charge for agricultural software and hardware services, not unprofitable. Xuyi County, Jiangsu Province, the county government, direct investment in recent years, great efforts to create "Xuyi lobster" brand, which greatly reduces the cost of farmers selling lobster, "skillfully deflected the" initiative, so that the volume of transactions Xuyi lobster enlarge rapidly in a short time. Appears to "lose" the free service, instead of increasing tax revenue for the government to achieve, cultivate sources, rich in multiple public performance. In fact, after China's accession to the WTO, countries have been very difficult to price subsidies, price protection, etc., support agriculture, caring farmers. Through agriculture, countryside and farmers to provide the financial payment from the free services reducing agricultural products into the international and domestic markets transaction costs, should be government support of agriculture, an important measure to care for one of the farmers.
    

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