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Study on the Mechanism of Yunnan Fresh Flower Farmer Cooperative Increasing Farmers’ Income

Author: LiLiSha
Tutor: WangZuo
School: Southwestern University
Course: Agricultural Economics and Management
Keywords: Farmer cooperative Fresh flower farmer cooperative Member’s income Growth mechanism Fresh flower industry
CLC: F321.42
Type: PhD thesis
Year: 2013
Downloads: 34
Quote: 0
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Abstract


For the strength of agricultural production processors and agricultural production tradesmen becoming more and more powerful, the strength of small farmers has been weaker and weaker in the agricultural production trades. In addition, with the more open markets to international agricultural production, the competition of agricultural production market has been more and more drastic. As a result, the income space of small farmers has been smaller and smaller. It has been a critical problem in agricultural development of our country how to gain the equal income in agricultural production trades. In order to gain equal income in agricultural production trades, farmer households should increase the production, improve the quality, save production cost and sales cost, and acquire a higher price. Farmer cooperative is an important tool to increase the degrees of organization and integration on farmers producing and operating. According to the data from Yunnan flower industry office, small farmer households produce the part that is the seventy percents of Yunnan fresh flowers. Because the decentralized operation method of small farmers has brought out high sales fee and trade cost, the income space of small farmers will become smaller and smaller. In order to increase the income of small farmers, the number of all kinds of cooperative organizations of fresh flower small farmers has been five hundred and thirty-two, among farmer cooperatives having been more than one hundred. The farmer cooperatives have been an important strength of Yunnan fresh flower industry developing. Yunnan fresh farmer cooperatives have made small farmers as a group, using the operation mode of the same technology, the same packing, the same mark, and the same sales, supply the service to small farmers before, in, and after the fresh flower producing. Because some marks of fresh flower farmer cooperatives. have been well known in Kunming international flower markets, the member’s income has been increased significantly. The income per mu has increased more than twenty percents.I Research QuestionOur research’s subject is from the economic phenomena, that the members’ income of Yunnan fresh flower farmer cooperative has increased evidently. The subject can be included the growth mechanism of the member’s income of Yunnan fresh flower farms’ cooperative. The subject can be divided into two parts. The first part is how to realize the growth of the member’s income of Yunnan fresh flower farmer cooperative. The second part is to find the inner reason of the growth of the member’s income of Yunnan fresh flower farmer cooperative.Ⅱ Main ContentsAround the research question, the main contents of our research are:1. By the starting point, the conduction path, and the mediate, our rescarch is to deseribe the process how Yunnan fresh flower farmer cooperative influences on member’s income, and put forward the conduction mechanism of Yunnan fresh flower farmer cooperative influencing member’s income. The conduction mechanism is that Yunnan fresh flower farmer cooperative influences the member’s behavior of producing and operating by the service in business, changes the economic variables which are connected by the member’s behavior, then changes the mediate, finally make the change of member’s income.2. Based on the delivery process of fresh flower farmer cooperative influencing member’s income, our research puts forward the growth mechanism of member’s income of Yunnan fresh flower farmer cooperative. We put forward the mechanism from the basic business of Yunnan fresh flower farmer cooperative. The basic business of Yunnan fresh flower cooperative includes the business of supplying member’s production means, the business of inducting the planting technology and the production standards, and the business of making an agent for the sales of member’s fresh flowers.3. Our sample data are from five hundred twenty-three householders who are planting fresh flower in Yunnan province. At first, our research has done tests on the growth mechanism of members’ income. Secondly, we have done empirical study on the influence of the decision variables to farmer’s income. Thirdly, we analyze the influence of the cooperative’s characteristics and service to member’s income.Ⅲ Research Conclusions1. The growth mechanism of member’s income of Yunnan fresh flower farmer cooperative(1) The growth mechanism based on the business of supplying the production means①The mechanism of improving the type of variety Yunnan fresh flower farmer cooperative enhances the members’wills and strength of changing the variety. Because the price of new variety is higher than the price of old variety, the cost increased by changing old variety is less than the earnings increased by changing old variety. Therefore, fresh flower fanner cooperative can help members’ income grow by inducting members to change old variety by the business in supplying seedlings. According to the empirical study results, the members’variety is newer than the nonmembers’variety; resource endowment can influence the type of member’s variety significantly; the service of recommending variety, the constraints of variety, and the well-known remark of cooperative are the important effects of members’variety.②The mechanism of decreasing the expenditure of seedlingsFor organizing members to purchase seedlings, the purchase scale of fresh flower farmer cooperative is larger than the scale of one householder. Therefore, farmer cooperative can gain the lower price of seedlings. Besides the seedling, guidance of farmer cooperative can decrease the quantity of seedlings by increasing the survival rate of seedlings. Therefore fresh flower farmer cooperative can decrease members’ cost of production by decreasing their expenditure of seedlings, and cause the growth of members’income consequently. According to the results of empirical study, the member’s expenditure of seedlings are less than the nonmembers’remarkably; resource endowment can influence the farmers’expenditure of seedlings significantly; the well-known remark of farmer cooperative, the quality of seedlings, and the year of fanner cooperative, are the important effects of members’variety.③The mechanism of decreasing the expenditure of chemical fertilizerFor organizing members to purchase chemical fertilizer, the purchase scale of fresh flower farmer cooperative is larger than the scale of one householder. Therefore, farmer cooperative can gain the lower price of chemical fertilizer. Besides the fertilizer, guidance of farmer cooperative can decrease the quantity of chemical fertilizer. Therefore fresh flower farmer cooperative can decrease members’cost of production by decreasing their expenditure of chemical fertilizer, and cause the growth of members’income consequently. According to the results of empirical study, the member’s expenditure of chemical fertilizer is not less than the nonmembers’ expenditure remarkably; the identity of member cannot influence the farmers’ expenditure of chemical fertilizer significantly too; the characteristics of farmer cooperative and the service of farmer cooperative are not the important effects of members’ expenditure of chemical fertilizer as well. The results of empirical study indicate that Yunnan fresh flower farmer cooperative cannot decrease the expenditure of chemical fertilizer effectively.④The mechanism of decreasing the expenditure of pesticides For organizing members to purchase pesticides, the purchase scale of fresh flower farmer cooperative is larger than the scale of one householder. Therefore, farmer cooperative can gain the lower price of pesticides. Besides the pesticide, guidance of farmer cooperative can decrease the quantity of pesticides. Therefore fresh flower farmer cooperative can decrease members’cost of production by decreasing their expenditure of pesticides, and cause the growth of members’income consequently. According to the results of empirical study, the member’s expenditure of pesticides is less than the nonmembers’expenditure remarkably. The number of farmers, the education years of organizer, and the average age of farmers, can influence the farmers’expenditure of pesticides significantly. The characteristics of farmer cooperative and the service of farmer cooperative are the important effects of members’ expenditure of pesticides.2. The growth mechanism based on the business of guiding planting technology and production standard(1) The mechanism of improving the quality of fresh flowerThe guidance and help of fresh flower farmer cooperative on planting technology and production standard in service, can cause members’planting behavior more scientifically, and improve the members’ quality of fresh flower consequently. According to the results of empirical study, the member’s quality of fresh flower is better than the nonmember’s; resource endowment can influence the farmers’ quality of fresh flower significantly; The service of guiding planting technology and the service of guiding production standard are important effects of member’s quality.(2) The mechanism of increasing the production of fresh flowerThe guidance and help of fresh flower farmer cooperative on planting technology and production standard in service, can cause members’planting behavior more scientifically, and increase the members’ production of fresh flower consequently. According to the results of empirical study, the member’s production of fresh flower is higher than the nonmember’s production. The size of fresh flower planting region, the age of organizer, and the distance from planting area to fresh flower market can influence the farmers’production of fresh flower significantly. The service of guiding planting technology and the service of guiding production standard are important effects of member’s production.3. The growth mechanism based on the service as an agent for selling fresh flower(1) The mechanism of decreasing the expenditure of fresh flower salesBecause fresh flower farmer cooperative has changed the members’ way of selling fresh flower, farmer cooperative can improve efficiency of fresh flower trades, decrease the member’s expenditure of selling fresh flower, and cause the growth of member’s income consequently. According to the results of empirical study, the member’s expenditure of selling flowers is lower than nonmembers’ evidently; the distance from planting area to fresh flower market, the number of farmers and the average age of farmers are the important effects of member’s expenditure of selling fresh flowers. The characteristics of farmer cooperative and the service of farmer cooperative are the important effects of members’expenditure of fresh flower sales.(2) The mechanism of raising the selling price of fresh flowerFor organizing members to sell fresh flower, farmer cooperative can improve the status in fresh flower trades, put up the member’s selling price of fresh flower, and cause the growth of member’s income consequently. According to the results of empirical study, the member’s price of selling flowers is higher than nonmembers’evidently; resource endowment can influence the farmers’price of selling fresh flower significantly; the cooperative’s service of selling flower is the important effect of member’s price of selling fresh flowers.IV The possible innovations1. When we do research on farmer cooperatives, we should notice their variety and their region. Our subject is Yunnan fresh flower fanner cooperative. It enriches the related researches on cooperatives. Our research has found that it is very important to organize farmers to plant and sell fresh flowers for increasing fresh flower farmer’s income.2. Most researches often note the difference between members’income and nonmembers’ income. Our research has noted not only the difference between members’income and nonmembers’income, but also the difference between members’income of one cooperative and members’ income of another cooperative. We have done empirical study on the influence of cooperatives’characteristics and service on members’ income.3. Most researches analyze the influence of cooperatives to their members’ income from farmers’income, farmers’expenditure, or farmers’ behaviors of producing and operating. Our research analyzes the influence of cooperatives to their members’ income from cooperatives’ business. The perspective of the research is special. It can help us give good suggestions from cooperative’s business to increase member’s income.

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CLC: > Economic > Agricultural economy > China 's agricultural economy > Rural economic structure and institutional > The form of agricultural cooperation > Economic union
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