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Since 1978, China dairy industry has been in a rapid development stage。Particularly the 1990s, with the development of China’s economy, constant improvement of people’s living standards and dietary structure, dairy has been taken more attentions as "the closest to perfect food". China’s dairy market demand has a sharp increase, and the market has flourished. The dairy industry in our country, belonging to the sunrise industry, has attract a large number of new enterprises to enter because the current industry profit is higher and the prospects for development is broader. Many international dairy companies have invest in the Chinese market, while at the same time, some powerful domestic business groups, such as Wahaha, Xinxiwang, Weiwei ,also have spent a huge sum in dairy market, the Chinese dairy market development is prosperous.However, with continuous infusion of capital, the competition in domestic dairy industry is in a disorder state .There are many problems in dairy industry,such as "dumping milk", "reinstate milk" , reduplicate construction of dairy resoure,which make dairy enterprises in state of tight even loss,and the consumers began to suspect the quality of dairy. Reasons for these problems are multifaceted,the main reason is that the market structure of dairy industry is not sound and the market behaviours of dairy processing enterprises is not irregular. Therefore, how to optimize the market structure and norm the competition conduct of dairy processing enterprises is a very important issue in the academic community.By adoption of the theory of industrial organization,the article want to optimize the China dairy industry organization by using S-C-P frame to find the measures which can keep competitive and get higher market performance.PartⅠis introduction which mainly introduce the study purpose of the selection of subjects,content,ideas and survey at home and abroad.PartⅡis basic theories,which is chapterⅡ.The chapterⅡintroduce the present condition of the development of China dairy industry from five aspects : production status, competition status, consumption and trade situation.
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