Is Industrial Alliance the Outlet of Standardized Development of Agricultural Products?

As a major production region  of fresh pears in China, Hebei province accounts for about 25 percent of the world's fresh pear exports, and more than 80 percent of China's fresh pear exports to the premium markets come from Hebei province. In the first 10 months of 2017 alone, the total value of exported fresh pear and volume reached  $430 million and 412,000 tons respectively, increased 11 percent and 15 percent compare to last year.

Although, exportation of fresh pear from Hebei have fallen sharply since 2016, as European and American countries have imposed stricter quarantine standards on fresh pears from China. In the later period, after the adjustment of production standards, especially fertilizer standards, the export volume has increased compared with the same period of the previous year.

On September 30, 2017, under the guidance of hebei entry-exit inspection and quarantine bureau, nine exporters that focuses on the United States, Canada, and Australia and other premium markets of hebei fresh pear export enterprises jointly established the united fresh pear alliance opened up a new cooperation mode.

This united mode can make full play to the advantages of hebei fresh pear cultivation and management, joint enterprise to develop the fresh pear brand, improve hebei fresh pear influence and competitiveness in the international market, and avoid unfair competition and the maximum market disorderly operation situation.

So, for other agricultural products, is this also a way out to take the standardized development route? Not necessarily. First of all, China has a vast territory and abundant resources. Most of the agricultural products are planted in scattered regions.

Considering the differences among regions, it is difficult to establish an alliance enterprise that can formulate unified operating standards. Secondly, the industrial alliance needs to be established under the joint cooperation of all the member companies.

In the case of too many member companies or uncoordinated cooperation, it is easy for them to operate independently. Thirdly, what the alliance can regulate is only the operation behaviour of the member companies, while for the agricultural products that are easy to be hyped, such as garlic and ginger, the speculation behaviour of the dealers can more determine the market condition. That part of the operation is beyond the alliance's control.