Download Eco-agricultural Industry Chain: Theoretical Basis and Build Path

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Eco-agricultural Industry Chain: Theoretical Basis and Build Path
-An Example of Poyang Lake Ecological Economic Zone
ZHANG Xiaoying 1, ZHONG Jinwen2
1. Finance School, Jiangxi Normal University, Nanchang, P.R.China, 330022
2. Business School, Jiangxi Normal University, Nanchang, P.R.China, 330022
Abstract: Eco-agriculture refers to a new intensive sustainable modern agriculture system that is
eco-rational and a virtuous circle. Eco-agricultural industry chain is the new agricultural economy that is
based on the concept of eco- economy and the principles of industry chain. Theoretical basis of
eco-agricultural industry chain include industry chain theory, industrial ecology theory and
Eco-economy theory. The build path of eco-agricultural industry chain is building green industry group,
setting up the industry clusters of eco-economy, developing of waterfowl breeding industry, establishing
livestock and poultry products deep processing base, strengthening technology introduction and
fostering core enterprises.
Keywords: Eco-agriculture, Eco-economy, Industry chain, Poyang Lake Ecological Economic Zone
1 Introduction
Eco-agriculture refers to a new intensive sustainable modern agriculture system that is eco-rational and a
virtuous circle. The establishment of this new system must apply modern equipment by combining the
scientific and technological achievements of modern agriculture and the essence of traditional
agricultural techniques. Currently, eco-industry is only part of the whole industry, can not a substitute
for all industries, but the eco-industry is the industry’s ultimate goal, ecological industrial development
has become the mainstream of international economic development, while becoming increasingly the
development direction of China’s economic construction.
Eco-agricultural industry chain is the new agricultural economy that is based on the concept of ecoeconomy and the principles of industry chain. Through simulation of natural systems, we can establish
“Industry chain” and “Industrial Network”, change the waste material of the upstream industry to the
raw materials of the downstream industry, so interconnected industrial organization should be
accomplished netlike organic integration, advocating waste exchange, recycling, cleaner production, to
achieve almost no waste of the production process and “zero emissions” of the ecological economy
industry.
Poyang Lake is located in the south bank of the middle and lower reaches of the Yangtze River and
northern Jiangxi Province, is the important wetland that has the world influence and China’s largest
freshwater lake that is the only lakes of no eutrophication in the four major freshwater lakes. In the
future development, the Poyang Lake area not only shoulders the important mission to protect “a lake
uncontaminated water”, but also carries an important function to lead sound and rapid economic and
social development.
In the new historical period, from the national strategy overall and long-term development perspective,
in order to explore new models of coordinated development of economy and ecology, we must build the
Poyang Lake Ecological Economic Zone so to provide a good model for the comprehensive
development of China’s Great Lakes region.
Poyang Lake Ecological Economic Zone, including Nanchang, Jingdezhen, Yingtan, and some counties
(cities, districts) of Jiujiang, Xinyu, Fuzhou, Yichun, Shangrao, and Ji’an, a total of 38 counties (cities,
districts), land area of 51,200 square km, total population of 2006.6 million, by 2008 GDP of 394.8
billion yuan. Poyang Lake Ecological Economic Zone in the development of ecological industry impacts
directly on achievement of Jiangxi’s strategic process of the rise of the central area.
Poyang Lake Ecological Economic Zone has just started, how the ecological and resource advantages
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into competitive advantages and industrial advantages in order to become new economic growth points
and promote economic development in Jiangxi Province, is one of our major strategic issue.
In my opinion, China’s industrialization has not yet completed, the contradictions of population,
resources, environment and economic and social development are still outstanding, construction of the
Poyang Lake Ecological Economic Zone can not take the old road of “the first development and then
control”, must develop ecological industry guided by the scientific development view and ecology
civilization idea.
2 Theoretical Basis of Eco-Agricultural Industry Chain
2.1 Industry chain theory
The concept of industry chain is raised by Michael Porter in 1985 in his book Competitive Advantage.
Porter believes that a company can create value through a series of assignments. A company’s final
value can be completed through the consumers’ money amount paid to its products and services. If this
value exceeds the total cost of all the requirements to complete assignments, the company is profitable.
An enterprise and its upstream and downstream business have their own industry chain, interrelated with
each other, so called “Value System”. Enterprises engage in industry chain activities, on the one hand,
create valuable products or services, on the other hand, assume the cost arising from activities of the
industry chain[1]. Michael Porter also believes that a large number of industries closely related to other
enterprises, as well as related supported agencies in the gathering space and forming a strong,
sustainable competitive advantage. It is obvious that any products are of transportation costs; however, if
the upstream and downstream industries are associated together with through the aggregation, which
may lead to lower transportation costs, to achieve the purpose of increasing returns, which is expressed t
in the space of the industrial cluster. Because the transportation cost of long transportation confines the
increasing returns, this is a kind of industrial clusters based on scale increasing effects. In the 90s of the
20th century, Krugman believes that industrial cluster is formed by increasing returns to scale of
enterprises, transport costs and remove of factors of production, conduction through the market arising
from the interaction. He believes that a country or region can achieve economies of scale by minimizing
transportation costs, making the manufacturing location choice tend to be demanded in the market place,
but the market demand in turn depends on the distribution of manufacturing[2].
2.2 Industrial ecology theory
The most central point of view of industrial ecology theory is to promote actively the environmental
load assessment and environmental load minimization, and to emphasize the interaction between
industry and the environment on the premise of economic, cultural and technological development. In
1989, Frosch and Gallopoulos point out that the analogy between the concept of industrial ecology
system and the concept of bio-ecological system is not necessarily perfect, but if the industrial system
operating rules mimic the biological, human beings will benefit from the infinite[3]. In 1992, L. M.
Jelinski and T. E. Graedel proposed three types of eco-system model: The first type is that unlimited
resources of ecosystem components to unlimited waste based on assumptions of linear material flow
production process, and the flow of a substance does not depend on all the other material flows. The
second type is quasi-cyclic model of material flow, that is, energy and limited resources into the
eco-system produce small amounts of waste, material flow between the various components within the
system is large. The third type is the material circulation model. Energy is the only system inputs, the
waste componential from a system change into the resources of another component, all recycled to
remain in the system[4]. The current industrial ecology system belongs basically to the second category.
2.3 Eco-economy theory
Eco-economy theory is to imitate natural ecosystems, which are in accordance with the material
circulation and energy flow to build economic systems, making the harmonious economic system into
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the natural ecosystems of the material recycling process[5]. Ecological economy is different from the
“Resources → Products → Waste → Pollution Emissions” the traditional mode of economic growth.
When economic growth reaches a certain stage, it can obtain the environment free of charge and
eventually to its limit, so the economic sustainable development is possible through the construction of
the industry chain of ecological economy. Ecological resources are public goods and its consumption
often leads to the non-exclusive “free-rider” situation. Investors at a profit destruct the environment,
natural resources and ecological environment by the deteriorating human access to nature. So at the
same time, economic value is significantly lowered, resulting in external non-economy. In this sense,
under the guidance of the old, circular economy and the natural industry chain, industry chain is
fractured. The environmental economics studies economic value through the respective of human
existence & ecological environment. The External means that consumption of products will affect
organizations or individuals who do not communicate with such activities with harmful or beneficial
effects, including beneficial effects referred to as the “external economy”, the harmful effects of
“non-external economy”. Therefore, the environmental economics promotes developing cycling
economy, realizing “external economy” while improving efficiency in the use of natural resources and
achieving the purpose of environmental protection. U.S. environmental economist A. Freeman said: “of
resources-changes in environmental systems for measuring the economic value of the theoretical basis is
that their impact on human well-being” [6].
3 The Build Path of Eco-Agricultural Industry Chain
3.1 Building green industry group
The inherent requirements of circular economy chain of trade & industry is to pursue the reduction of
economic resources in the course of economy, to promote the public participation in green consumption,
the establishment of recycling-based economy. As the Lake waters flows through the large scope in our
province, so the industrial cluster waterfowl breeding can be grouped as a leader, with green logistics as
the support, the establishment of Lake of the culture industries of economies of scale to build a logistics
center in the green economy, In turn, the market’s consumer awareness of green eco-industrial clusters
promote the development of ecological economy through the construction of the industry chain, green
food, and guiding enterprises group of “green procurement and consumption”, and gradually form a
market-oriented the premise of environmental protection, sustainable development of the “green
industry” chain.
3.2 Setting up the industry clusters of eco-economy
The industry clusters of ecological economy should be set up in order to form the industry chain.
Because the industry industry chain cluster is formed by coupling of the network organization related to
the coupling model of innovation clusters. Cluster industry chain is a complex network system, whose
classification of the link model is also a complicated process. Division of labor theory of the complexity
of our organization is to provide a link to a new perspective so that the cluster value study on the
relationship between chain links no longer stays in the traditional vertically integrated supply chain
products and enlarge the level of the supply chain, extending the study scope of the link relationship[7].
A network of different relationships is the cluster formation foundation and development of enterprises
based on the background of economic activities of enterprises, which at the same time is of the role of
incentives and constraints. Geographical proximity, such as strengthening of the social relations and
economic relations with the nested links, leads to a higher close to the psychology, trust and mutually
beneficial mechanism that it is easy to form a network of links between and to continually develop
between enterprises[8].
Poyang Lake area constructs on the industry chain of ecological economy to form ecological economy
industry cluster. Through material recycling, energy multi-level utilization and serial processing, we can
improve efficiency in the allocation of environmental resources and eliminate environmental pollution,
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reduce transaction costs within populations to achieve economic growth rapidly in Poyang Lake area.
3.3 Developing waterfowl breeding industry
Poyang Lake waters cover a lot of broad scope, and waterfowl breeding makes use of the cycle
economic industry chain, which is the leading role in this area. The waterfowl breeding industry spreads
in the Poyang Lake area to reach its far surrounding. Farmers make full use of existing water
resources, modern farming technology, seed selection, so that the economic cycle of the composition of
the industry chain with a unique advantage can be fulfilled. At the same time, rational planning and the
construction of large-scale farms establish industry-leading culture. For example, the Lake District has
long been known with duck farmers. Large-scale intensive duck-farming has long been concentrated in
suburbs (such as the breeding base in Nanchang Xiaolan duck, duck rearing, through the South has
become the largest duck-intensive manner), However, with the continuous expansion of Nanchang, in
the south of the poultry industry, the pollution generated by urban pollution has become a big problem.
In Duchang County Hehe Township Binhu Village recently, duck raising households have reached
more than 50 households, each household in duck feeding feathers amounting to 1000-2000, the average
household net income is 10000 RMB or more a year. This spring, the number has exceeded 400000
duck feathers. Under such circumstances, Nanchang County breeding base of the Duck Lake area should
transfer to Poyang Lake breeding industry cluster, to build a breading, processing, pollution treatment,
green logistics of the ecological economy as a whole industry chain.
3.4 Establishing livestock and poultry products deep processing base
Poyang Lake is the China’s largest freshwater lake, which is a typical sub-tropical zone with the
world-renowned wetlands, rare birds and animals, attracting a large number of domestic and foreign
experts and scholars to come here for their study tours, and they have achieved a lot of scientific
research and have improved breeding technology to attract visitors from abroad and homeland. A
circular economy should be built through the industry chain, e developing Lake waterfowl breeding, so
as to promote deep processing, open the door to international markets, and enhance aquaculture export
capacity has broad prospects. For example, a triangular of Yongxiu county, as the leading water
processing plants, makes use of “enterprise bases (incubator) farmers (farming)” economic form, is
responsible for credit to the neighboring farmers incubation feeding, and then recollect these products
with pressed salted duck processing more than 100000, 30000 vacuum pressed salted duck, produced
dry salted duck series of products, selling products in Guangdong, Fujian, Anhui and other places, with
more than 10 million annual profit and turn over more than 50000 Yuan of taxes and fees and promote
the development of the Triangle township, the whole county and even the development of duck
production[9].
3.5 Strengthening technology introduction and fostering core enterprises
Core enterprises have accumulated rich experience and capital for technological innovation and
industrial upgrading in order to adapt changing market conditions to produce dynamic capability. Once
enterprises have become the core of enterprise clusters and are of organizational capability in production
and products’ industry chain so that it has global industry chains in the division of labor resources in the
strength of competition for high-end. Also local industrial clusters are produced so that more
labor-intensive industries transfer to capital, knowledge-intensive industries of the internal
momentum[10]. It is precise that the United States, Silicon Valley, the Spanish footwear industry leading
core businesses, collaborates with the ability to produce value-chain networks to lower labor costs in the
face of regional competition from other suppliers that they will be forced to accept the technological
upgrading of cutting costs. Therefore, the core business through continuous technological upgrading
within the industry chain of the cluster system can be improved, and to continue to occupy the
international market.
Thus economic industry chain development can not be separated from advanced technology, which is
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significant to such a backward economy like the Lake, especially in such case that the vast majority of
our residents are lack of awareness of environmental protection areas. We should focus on strengthening
the economic cycle technology industry chain, introducing related technical and training the related
talents to provide strong technical support; advocating clean production and green consumption,
agricultural products and continuously improving the safety of food-processing performance, to
minimize environmental pollution and ecological destruction, agricultural development and the
environment to achieve the harmonious development of resources; At the same time, efforts must be
made to break through the green barriers so that products meet relevant international standards, and
enhance agricultural competitiveness in international markets.
Acknowledgment and Author in brief:
Supported by Jiangxi Social Science “Eleventh Five-Year” Planning Foundation (08YJ113) and Jiangxi
Higher Education Institution Humanities and Social Science Research Projects (JJ0710, GL0710).
ZHANG Xiaoying (1966-), female, associate professor, Dr., and master instructor, ecological economy
and industry cluster, 86-13576297898, [email protected]
References
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