Function of the Agricultural Cooperatives in the Industry of Broilers in China

Abstract

In the broiler industry in China, it is popular to purchase broilers from the agricultural and the agricultural cooperatives, we can classify the agricultural cooperatives into three types. [the cooperatives and the processing companies traded as independent entities], [the cooperatives owned by processing companies], [the cooperatives which invest the processing companies]. This paper aims to analyze the conditions among the agricultural cooperatives, the farmers who joined the cooperatives and processing companies. As a result, among [the cooperatives and the processing companies traded as independent entities], there are some shifts in the price risk to the farmers to ensure the cooperatives, and also some that disintegrated yet stabilized the income of the farmers by supplying the production goods and purchasing the broilers at regular price. As was remarked above, the cooperatives in China not only play a role of coordinator between the processing companies and farmers, but they are also expected to invest in the processing as an integrator.