A Study of the Mechanism for Distribution of Benefits Based on Vertical Coordination in Agriculture
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Currently, the mechanism for distribution of benefits based on vertical coordination in the area of agricultural products can be divided into some types such as market price regulation, contract agreement, and dividend distribution according to trading volume or shares, and internal profit of enterprise. There are differences in operating characteristics, advantages and adaptation between different mechanisms. And contract agreement can be subdivided into guaranteed price, market protection price, market protection price+ preferential services, and market protection price+ secondary rebates. Taking the citrus processing industry in Zhongxian County for example, it is recommended to learn from the Taiwan experience to strengthen the linking between citrus cooperatives, and develop the order mode as well as the "market protection price+ preferential services" mechanism for distribution of benefits.