Guo: Developing agricultural electronic commerce to realize agricultural transformation and upgrading

Agricultural e-commerce is of great significance for improving agricultural product logistics, accelerating agricultural information circulation, expanding agricultural product sales channels, perfecting the market mechanism and function of agricultural products, and can effectively combine the prenatal, productive and post-natal stages of agriculture, and solve the asymmetry of production and market information in the management of agricultural productions and supply.

Reducing the circulation of agricultural products

Through e-commerce platform, producers can communicate directly with consumers, quickly understand market information to carry out transactions autonomously, its ability to acquire the capability of acquiring and product self-marketing and risk resisting ability greatly strengthened, dependence of traditional intermediary is reduced greatly, e-commerce can reduce intermediary link, But can not completely eliminate the inevitability of market intermediary social Division of labor, still need to specialize in the circulation of agricultural products organizations. It is possible to combine or remove low value-added channels by selecting and retaining high value-added circulation links through electronic commerce.

Reduce the circulation cost of agricultural products

Agricultural products from farmers to reach consumers generally through 4 to 6 links, including farmers-buyers-origin wholesale market-transport-sales to the wholesale market-distribution to supermarkets, markets or farmers markets, each additional circulation, the cost will increase by 5% to 10%, plus a variety of taxes and management costs, The circulation cost is about half of the vegetable price. Through E-commerce platform, producers can directly, quickly and accurately understand the market demand, production of marketable, appropriate amount of agricultural products, to avoid excess caused by excessive transportation, storage, processing and loss costs. Effectively evade the information asymmetry between farmers and consumers, poor efficiency of the operation of the current situation, so as to effectively promote the circulation of agricultural products from decentralized to order-oriented agriculture transformation.

Broaden the distribution channels of agricultural products

Developing agricultural electronic commerce, the establishment of agricultural E-commerce website and the construction of online trading platform can realize the scale and organization of the agricultural product circulation, on the one hand, the two sides can be in the position of information equivalence, avoid the loss of profit caused by asymmetric information, and on the other hand, provide a new sales channel and way of agricultural products, The most possible direct transactions between the two parties can reduce the trading links and reduce transaction costs.

Perfecting the market price mechanism

Market segmentation, asymmetric information and lack of sufficient competition are the leading factors of the price instability of agricultural products. Through E-commerce network platform, all over the wholesale market of agricultural products can be interconnected to form a nationwide market of agricultural products circulation. In addition, the virtual market of agricultural products can accommodate a large number of traders, to achieve the intensification of transactions and market scale. Furthermore, the automation of electronic commerce greatly reduces labor costs and human intervention, bringing the marginal cost of transactions close to 0. Moreover, each trader has equal access to information and trading opportunities to ensure a high degree of transparency and fairness of the market.

Guo, an expert member of China Internet Association, said that e-commerce could break the situation of agricultural information occlusion and market separatism, build a unified market of agricultural products with large scale, smooth information, high transparency and full competition, and establish a responsive and sound and effective fair price formation mechanism.

Agricultural electronic commerce is a trend, no matter is the encouragement of the policy, the demand of the market, has provided the steady power for the development of the electronic commerce. The connection between the production of agricultural products and the market demand can help the agricultural enterprises to resist the market risk brought by the contradiction between supply and demand, accelerate the adjustment of industrial structure, and also have great value and function to the development of modern agriculture, green agriculture and brand agriculture. (Wen/Guo, expert member of China Internet Association)