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Entry of Chinese Small Farmers into Big Markets

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Listed:
  • Xuchu Xu
  • Ke Shao
  • Qiao Liang
  • Hongdong Guo
  • Jia Lu
  • Zuhui Huang

Abstract

Over the past thirty years, reforms in China have pushed forward the integral development of the economy and opened up agriculture to modernization. Small farmers who obtained independent production and operating rights during the reform period must now confront the pressure of market competition. The "Investor-Owned Firm (IOF) + farmers" mode or leading-enterprises-led mode has pioneered agricultural industrialization in China. However, it has some limitations in terms of contract instability and its inability to ensure farmers' rights and interests. At the same time, cooperative organizations of small farmers have been legally accepted and supported by the government and are developing rapidly. In this article, we analyze the alternative modes of agricultural industrialization, especially the effectiveness and limitations of farmer cooperatives. We find that farmer cooperatives are going to play a more and more important role in the foreseeable future, while the leading-enterprises-led mode will also persist as a key contract form in agricultural industrialization.

Suggested Citation

  • Xuchu Xu & Ke Shao & Qiao Liang & Hongdong Guo & Jia Lu & Zuhui Huang, 2013. "Entry of Chinese Small Farmers into Big Markets," Chinese Economy, Taylor & Francis Journals, vol. 46(1), pages 7-19, January.
    • Handle: RePEc:mes:chinec:v:46:y:2013:i:1:p:7-19
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    Cited by:

    1. Kifle T. Sebhatu & Fatemeh Taheri & Tekeste Berhanu & Miet Maertens & Steven Van Passel & Marijke D'Haese, 2021. "Beyond focus: Exploring variability of service provision of agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 207-231, June.
    2. Li, Kai & Zhou, Jie-hong & Liang, Qiao & Huang, Zuhui, 2015. "Food safety controls and governance structure varieties in China's vegetable and fruit sector," 2015 Conference, August 9-14, 2015, Milan, Italy 212046, International Association of Agricultural Economists.
    3. Ji, Chen & Jin, Songqing & Wang, Haitao & Ye, Chunhui, 2019. "Estimating effects of cooperative membership on farmers’ safe production behaviors: Evidence from pig sector in China," Food Policy, Elsevier, vol. 83(C), pages 231-245.
    4. Lin Li & Hongdong Guo, 2019. "The impact of business relationships on safe production behavior by farmers: Evidence from China," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 84-96, January.
    5. Lei Wu & Chuanjian Li & Yang Gao, 2022. "Regional agricultural cooperatives and subjective wellbeing of rural households in China," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 138-158, November.

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