Abstract
Today, food safety is a common concern in the world. As the main source of food, agricultural products’ safety is also worthy of attention. By establishing the vertical integration model of the agricultural product supply chain, the circulation links of agricultural products can be reduced, and the circulation efficiency and quality level of agricultural products can be improved. This paper assumes that under the condition of simple fresh agricultural products, there is only one wholesaler and one retailer in the agricultural product supply chain. Through the analysis of the economic model, it is concluded that the vertical integration of the agricultural product supply chain has a positive impact on the safety of agricultural products. With the improvement of the vertical integration of the supply agricultural products supply chain, the efforts of wholesalers and suppliers to ensure the safety of agricultural products have been improved, the circulation cost of agricultural products has been reduced, and the sales price of agricultural products has been reduced.
Highlights
There are many circulation organizations and complicated links in the supply chain of agricultural products
Crespi and TinaL believe that vertical integration has been proved to have important progress in improving the efficiency of the agricultural supply chain, but the impact varies with time and commodities, and the development of the industry should develop in the direction of greater integration [3]
The vertical cooperation and social capital of the agricultural product supply chain improve the level of trust between the agricultural product circulation subjects and reduce the opportunistic behavior that may exist in the transaction between the two parties
Summary
There are many circulation organizations and complicated links in the supply chain of agricultural products. The main causes of these problems include excessive circulation links, running a bulk tissue, non-strict regulatory, and low organological supply chain. How to avoid these issues, improve the quality and safety of agricultural products while reducing unnecessary costs? Through the analysis of the vertical integration of production, processing, and sales in the American pork supply chain, James B.Kliebenstein and John D.Lawrence finds that vertical integration promotes the competitive position of the main body in the market and promotes the development of the regional industry Sporleder TL, WuSY [4,5]. The vertical cooperation and social capital of the agricultural product supply chain improve the level of trust between the agricultural product circulation subjects and reduce the opportunistic behavior that may exist in the transaction between the two parties
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