As vegetable and food prices, is also an important livelihood issue. In the industry fear that as the future foreign investment on China’s agricultural industry, the overall penetration, the impact on domestic agriculture and industry will continue to increase, threatening the safety of the agricultural industry level will also continue to deepen.
Recently, due to extreme weather conditions occur, the industry malicious speculators speculation, combined with vegetable production costs and other factors, some local dishes
Related shares trend Agricultural 14.80 +0.120.82% * ST States 8.86-0.08-0.89% of agricultural prices soared and the phenomenon occurs. April Beijing Vegetable prices rose 2 percent, Shanxi expensive than meat dishes appear the situation, Hebei continuous low temperature pushed up vegetable prices, Changsha residents there, “Amoy food boom”, Weihai large Garlic Wholesale prices hit record highs.
Shandong rural reform and development of Qin Qingwu, vice president, said, “Shouguang standard” With a bigger, there will be monopoly. For example, the business acquisition of five cents per catty of vegetables, may be inconsistent record will be sold to binary. Because without full competition, it could lead to high prices. Vegetable supply public goods and services have a certain nature, if it detects as a public service, may be better than. If the testing fee plus no more than 10%, under the supervision of the government should be able to do so. However, if left entirely to the private sector to run, companies will be seeking to reap huge profits.
Six months ago Cooking oil Price behavior of the collective prices, illustrates the seriousness of the problem. Industry that this was mainly due to oil market has in fact been controlled by economic oligarchs, the oligarchs have the ability to manipulate the market. Economic interests of oligarchic alliance once formed, the total demand in the market under the same, they could control the supply of goods to the mercy of the market. Not only the edible oil market, so, any market, if simply bigger and stronger, at the end the market only a small number of similar enterprises, these enterprises to reach a consensus soon, in the interests of the drive, they will certainly raise the product price, and reap huge profits.
Edible oil prices on domestic prices of collective behavior, regulation of the State Grain Administration Deputy Director Kenny CHOW Kun has said that the high dependence on imported soybeans, resulting in soybean pricing in China already lost the qualification to speak, the current grasp Food distribution is the four multinational companies, namely, ADM, Bunge, Cargill and Louis? up fu “four food business.” On the surface, we are not pricing power because oil is Raw material No pricing power, that is, raw materials 80% dependent on imported soybeans. But a closer look, it is not just the problem of raw materials, foreign capital and brands with advantages, from raw material supply, futures trading, production and processing to marketing channels, have been on the domestic edible oil basically control the whole chain.
In the industry are worried that if the multinational corporations in China’s grain market share is too large, will undoubtedly increase Food prices Fluctuations, and thus increase the difficulty of regulating the grain market. German economist Liszt has proposed an “infant industry protection theory”, that issued after the comparative advantage of economies need policy support to protect, not easy to fully open, or foreign national industry will be crushed and lost development opportunities.
Of Agricultural Market Development confirmed the theory of domestic agricultural enterprises born out of the small peasant economy, its own lack of competitiveness could not compete directly with foreign companies, which led to the edible oil industry control changed hands because of domestic agricultural products. From Korea and other economies, experience shows that agricultural protection for foreign investment into the agricultural industry needs to have two limitations, first entered the area, initially should end products, mainly non-sensitive products, as food oil requires careful opening; 2 is limited to the proportion of foreign-funded enterprises to enter, such as a single foreign-funded enterprises into the ceiling limit of 10% to 15%, to avoid the industry being foreign control of the situation.
In the international grain market, there are referred to as “ABCD” International grain traders say the four, these four grain companies have argued that the United States of ADM (ArcherDanielsMidland), the United States, Bunge (Bunge), the United States, Cargill BOLA TANGKAS