The significance of the development of agricultural logistics

Development of agricultural logistics is conducive to play the basic role of agriculture in the national economy. From the analysis of the situation after accession to the WTO, the domestic production prices of major agricultural products are mostly higher than the international market price, the basic loss of commercial competitive advantage. If our country organizes the import of high-quality low-priced agricultural products, will have a negative impact on some of the major producing areas of agricultural products and their farmers, farmers will be increasingly difficult to sell food, the difficulty of resolving rural socio-economic contradictions will gradually increase; and if the reluctance to adhere to the acquisition of domestic low-quality high-priced agricultural products, urban residents are bound to highlight the contradiction in consumption, the state finances can not afford to eat. It can be seen that, with China's accession to the WTO and the opening up of the rural market and the acceleration of the process of internationalization of agriculture, China's traditional agricultural production, business practices and technology, resulting in poor logistics, high cost, poor quality of agricultural products and other backward status quo, will certainly make the countryside into a serious economic panic. The emergency measure and long-term strategy to change this status quo is to improve agricultural productivity and establish a scientific agricultural logistics system. The establishment of modern agricultural logistics system is to build and improve the objective requirements of efficient agricultural socialized service system. China's agricultural production is crude, low labor productivity, low level of specialization, less high-quality products, insufficient marketization, and outstanding structural contradictions in agriculture. The reason for this is that Chinese agriculture lacks an efficient service system. Only through the establishment of the logistics system, a sound agricultural service system, can decisively adjust the industrial structure, the implementation of industrialized management.

The establishment of a modern agricultural logistics system is a driving force to promote farmers to pay attention to agricultural management and cost accounting. China's vast rural areas has been "heavy production, light accounting". Farmers to be able to obtain economic benefits, often only focus on reducing production costs and sales costs, but ignored the logistics of potential profits. Logistics not only has in the field of enterprise production, supply and product sales to improve the efficiency of economic operation of the value, at the same time in the reduction of enterprise production costs, increase the profitability of enterprises, and promote the value of business operations also has a significant significance. Many countries call logistics "the treasure trove of cost reduction" and "the third source of profit". With the improvement of the quality of science and technology and culture of farmers, has recognized the importance of agricultural cost accounting from the urban industrial and commercial management, and attempts to develop logistics and strengthen logistics management to promote the circulation of agricultural markets and economic prosperity, and promote the development of the rural economy and the realization of agricultural modernization.

The establishment of modern agricultural logistics can greatly reduce and diversify agricultural business risks. After China's accession to the WTO, agricultural market competition has intensified, how to make agriculture to reduce the risk of winning more profits, is a thorny issue for agricultural producers. At this time the role of logistics management in risk resistance is widely concerned. For example, the seed company will bear the seed germination risk, pesticide companies will bear the pesticide can not play a role in the risk (in our country may be manifested in the risk of bearing fake drugs), warehousing companies will bear the storage risk of fresh and live products, agricultural trading companies will bear the risk of market risk that is, the risk of price changes, and so on, and so on, so as to achieve the partial transfer of agricultural production and farmers' risk. Through the establishment of agricultural logistics system, can promote agricultural producers and its material suppliers, processors and sellers of agricultural products to form a strategic alliance, so that many farmers, agricultural small and medium-sized enterprises to form intensive operation, reduce logistics costs.

The establishment of a modern agricultural logistics system can promote the structural adjustment of China's rural economy and promote rural urbanization. Theoretically the creation of agricultural logistics system, but in practice, but mainly reflected in the establishment of logistics industry in rural areas, it belongs to the rural commodity circulation enterprises specializing in agricultural production services. Because of China's large land area, the relationship between economic development and logistics appears to be closer, the logistics industry in China appears to be more important. Through the establishment of China's rural economy and agricultural production to adapt to the logistics system, or the current existence of China's rural areas independent of each other with logistics characteristics of the enterprise resource reorganization, will to a large extent to promote the development of enterprises supporting agriculture.