Advances in Social Science, Education and Humanities Research (ASSEHR), volume 106 International Conference on Education Science and Economic Management (ICESEM 2017) Research on the Mode of Tea Marketing Channel Alliance with Professional Cooperatives as the Core

Song Chen Jiangfan Yang College of Economic, Agriculture and Forestry College of Economic, Fujian Agriculture and Forestry University, China 350002 University, China Fuzhou 350002 Wuyi University, China Wuyishan 354300

Abstract—In order to clarify the operation mode of tea market and enhance the market competitiveness. At the same cooperatives, this paper constructs the overall operation time, it can effectively resolve the possible market winds of framework of tea marketing channel alliance model with decentralized operations, improve the sales price of agricultural cooperatives as the core through literature review and field products and improve the economic benefits, and effectively investigation. Among them, the horizontal alliance includes the increase the income of farmers. In the market and the cooperative alliance organized by farmers spontaneously, the tea government to encourage the dual drive, the professional cooperatives in the form of tea group, the leading tea professional cooperatives have been rapid development, tea enterprises set up cooperatives, the cooperative alliance is professional cooperatives as the core of the marketing channel composed of tea professional cooperatives. And the vertical alliance model has also been innovative. In view of this, this alliance includes Tea professional cooperatives (or union) and tea paper through the literature review and Fujian Province and processing enterprises, Tea wholesalers wholesalers / (market) market / and Tea retail terminal alliance. Compared with the China's main tea producing areas of the field research, combing previous literature, this paper systematically combs the mode of the professional cooperatives as the core of the tea marketing tea marketing channel alliance with professional cooperatives as channel alliance of the main model to build a cooperative as the the core, and the division of horizontal alliance and vertical core of the tea marketing channel alliance model of the overall alliance for the first time is an extension and development of the operation, Having a certain practical significance [3]. previous literature. II. THE CONNOTATION OF THE ALLIANCE MODE OF TEA Keywords—Tea; Cooperative; Marketing channel; Alliance MARKETING CHANNEL WITH PROFESSIONAL COOPERATIVES AS mode THE CORE Tea professional cooperatives are based on the family I. INTRODUCTION contract management, engaged in tea production of tea farmers Tea industry has become an important pillar industry in 21 based on "voluntary join, free to withdraw, democratic major producing provinces and an important source of income management, the return of the surplus" principle, in accordance for more than 8,000 million farmers [1]. China has 80 million with the common negotiations of the charter to co-production, tea farmers, they are long in a small scale and decentralized management and services of the mutual aid of tea industry state, while unable to participate in the tea circulation of other economic organizations [4]. Tea professional cooperatives with value-added links, leading to poor farmers negotiations, tea its members as the main target, to provide members of the tea farmers in the market transactions in a disadvantageous production materials to buy, production technology guidance, position [2]. In this context, the development of tea tea processing, transportation, storage, sales and production professional cooperatives is to improve the status of tea farmers and management of tea-related technology and information market and bargaining power of the important choice, also is services. And cooperatives as the core of the tea marketing an important measure to strengthen the market competitiveness channel alliance is in the entire tea sales channels, tea of tea industry, and an important way to increase the tea marketing channels in some independent channel members farmers' income. Tea professional cooperatives is the (mainly tea farmers, tea cooperatives, tea enterprises, tea organization of tea farmers to develop production and an wholesalers / market, tea retailers Etc.) on the basis of mutual important bridge to the market, On the one hand, tea farmers trust and common long-term goal, to cooperatives as the core, cooperatives can organize tea farmers, according to market in the front by the tea farmers (tea group) set up production demand, the use of local resources, in accordance with uniform alliance (horizontal alliance), in the backward and tea standards and requirements around the leading industries, the enterprises, wholesalers, retail terminal distribution Alliance development of high quality, safe and efficient agricultural (vertical union), through some form (contract, equity, etc.) and products, to create a unified brand; On the other hand, tea the formation of the advantages of complementary, risk sharing, cooperatives can concentrate the scattered tea products on the benefit sharing of the organizational system.

Copyright © 2017, the Authors. Published by Atlantis Press. 616 This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). Advances in Social Science, Education and Humanities Research (ASSEHR), volume 106

Tea tea Tea Tea Tea farmers professional enterprise group cooperatives Tea Tea professional Consum Retail terminal Tea cooperatives Tea Tea Commonw Tea farmers professional Wholesaler group cooperative (market) Tea s

Fig. 1. Cooperative as the core of the tea marketing channel alliance mode of the operating framework

of households. The cooperatives in February 2010 the United III. AN ANALYSIS OF HORIZONTAL ALLIANCE OF TEA States Zhuang tea professional cooperatives were named Anxi MARKETING CHANNEL ALLIANCE MODE "Top Ten" cooperatives, in June 2013 by the municipal government awarded the "municipal demonstration of farmer A. Tea farmers spontaneously organize tea professional professional cooperatives." cooperatives Tea farmers spontaneous organization of the Union of tea C. Tea leading enterprises to lead the formation of coalition professional cooperatives generally led by the local tea tycoon. cooperatives In the process of production and operation, the members of This kind of cooperatives mainly form the "enterprise + cooperatives, due to endogenous (their own development needs) cooperatives + farmers" tea alliance business model [6]. The or exogenous (policy guidance) forces to produce the motive of tea cooperatives are mainly composed of "tea cooperatives", the formation of cooperative economic organizations, the loose which are formed by the strong tea enterprises. For example, tea farmers together to form tea production, processing, Sales Anxi County Crown Tea Factory led the formation of Fujian as one of the alliance [5]. For example, the Long Juan Province Anxi County town of three security tea professional Township, Anxi County, Fujian Province, the source of tea cooperatives in September 2008 to set up the initial registered professional cooperatives is to Chen Binghuai, Liu Jinlong, capital of 60,000, has been added to 2 million.Tea garden area Chen Chuanxi three tea tycoons led the formation of tea per household to 6 acres of tea garden shares, the existing cooperatives, was established in July 2008, members from the members of 500 people (households), a total of 3,000 acres of initial 29 to the development of 158 The price from the initial tea garden area, members of the tea sold 10,000 crown tea. The 20 yuan / kg increased to 200 yuan / kg, high or even more characteristics of such cooperatives is initiated by the tea than 500 yuan / kg, 2013 sales revenue reached more than leading enterprises, give full play to the role of tea cooperatives 3,000 million, the price of tea, Members of the income of and the role of a link, a base, farmers, a docking leading 80,000 -9 million yuan is not a minority. enterprises. Leading enterprises and farmers through the cooperatives signed purchase and sale contracts, the B. Tea farmers group spontaneously organized tea organization of coordination of funds and the transfer of professional cooperatives production materials and other services to coordinate the The tea professional cooperatives are not distributed by the interests of both sides, so that enterprises and farmers to farmers to join the cooperatives, but by a number of tea farmers achieve a win-win situation between. Such cooperatives to voluntarily form a joint security group, and then by the joint improve the degree of tea farmers and the ability to resist security team to apply for co-operatives into the community. market risk, a stable market and relatively protected prices, This kind of tea cooperatives should organize and implement increasing the income of tea farmers. the management responsibilities of the "joint management system" base, and implement the unified "unified agricultural D. A coalition of tea cooperatives procurement", unified agricultural distribution, unified In recent years, the tea professional cooperatives have agricultural use guidance, unified agricultural activities record, developed rapidly, but the cooperatives are generally small, the unified brand sales Cooperation mode of operation, to further majority of the residents of the community, the small improve the joint system model. For example, the Anxi County, cooperation is difficult to adapt to the contradiction between Fujian Province, Huqiu Town, the United States Zhuang tea the big market still exists. Therefore, the new cooperation of professional cooperatives was established in March 2008, the cooperative organizations, especially the same tea mainly by the village of 5-10 households tea farmers producing areas of homogeneous, scattered tea professional voluntarily formed a joint security group, the group to the cooperatives together to form a coalition, help to avoid the cooperatives to join the agency; the cooperative joint protection vicious competition between cooperatives, and expand their Group of 33, 233 tea farmers joined the cooperatives, the own strength. Tea cooperatives are jointly organized by two or number of households accounted for 82.3% of the total number more tea cooperatives, which are jointly organized by mutual

617 Advances in Social Science, Education and Humanities Research (ASSEHR), volume 106 legal organizations. May, Hubei Province, Xiaochang County B. Tea professional cooperatives (or affiliates) and Tea Association of professional cooperatives set up by the wholesalers wholesalers / (market) market alliances eight professional cooperatives and two tea enterprises Tea cooperatives and tea processing enterprises to establish spontaneously composed of a registered capital of 50 million an alliance, can solve the problem of tea and tea sales. yuan; the current existing area of 7.6 million mu of tea, However, browish-green and primary tea are primary radiation led more than 36,000 households , Tea processing agricultural products, low value-added products, it is difficult plant more than 120, the annual processing capacity of up to to effectively improve the overall benefits of tea farmers and 5,000 tons, with an annual output of 2280 tons of finished tea, cooperatives. With the gradual popularization of tea processing the output value reached 120 million yuan; the members to machinery and the availability of tea refining technology, most provide industrial policies, new varieties of promotion, green of the tea professional cooperatives (or association) in the cultivation, formula fertilization, Sales and other train services, production capacity of refined tea, tea processing to complete the formation of "joint society + professional cooperatives + the whole process, and large-scale production Product "selling base + farmers" alliance development model.. hard" problem highlighted. In this context, the tea professional cooperatives (or associates) began to establish a strategic IV. AN ANALYSIS OF THE VERTICAL ALLIANCE OF TEA alliance with the strength of the tea wholesalers / market to MARKETING CHANNEL ALLIANCE MODE ensure that the production of refined tea can be circulated and Tea farmers, tea farmers group or small-scale tea sold, so that the economic benefits of tea farmers and professional cooperatives through the horizontal alliance to cooperatives can be achieved. solve the internal production scale and quality problems. However, the tea professional cooperatives (or associates) need C. Tea professional cooperatives (or union) and tea retail to establish a marketing channel alliance with tea processing terminals enterprises, wholesalers and retail terminals, etc., to solve the In the entire tea industry chain, the planting link in the tea problem of sales of tea terminal products. As the tea product value chain in the lowest income, and brand professional cooperatives (or associates) and processing management and sales of the highest income. To tea enterprises, circulation enterprises and retail terminals in the professional cooperatives as the core of the marketing alliance main line of the tea industry chain in different links, with model operation, the tea professional cooperatives (or upstream and downstream relations, so by the above-mentioned association) in order to obtain higher efficiency, in policy alliance with the main body of the alliance is a vertical alliance. support began to take the brand development path. For example, some tea professional cooperatives (or associates) began A. Tea professional cooperatives (or union) and tea producing refined tea and registered trademarks to cultivate tea processing enterprises in the vertical alliance brands. Since then, the tea professional cooperatives (or Tea professional cooperatives (or association) are generally association) can self-built outlets to sell their own brand of tea, self-built tea processing plant, the members of the production but the direct investment into the store, for no advantage of the of tea green for the initial processing, production of tea. advantages of cooperatives, as its main sales channels. However, due to the limitations of funds, technology and sales Therefore, the tea professional cooperatives (or associates) and channels, tea processing cooperatives (or cooperatives) to tea franchise stores, teahouses, teahouses, restaurants, shopping establish the processing capacity of the processing plant is malls counters, supermarket stores and other retail terminals to limited, in the tea green picking period, can not meet all the establish a coalition, the formation of sales channels to solve processing needs of members to find out the sales channel the brand development of export sales. demands. Therefore, the tea professional cooperatives (or associates) need to cooperate with the tea processing V. CONCLUSION enterprises to solve the problem of leaf processing and sales. At Tea professional cooperatives are recognized by all levels the same time, tea professional cooperatives (or association) of government to improve the status of tea farmers and production of wool tea also need to cooperate with the bargaining power, and promote tea farmers an important choice processing enterprises, further finishing. Therefore, in this and an important way. In the market and the government to realistic background, the tea professional cooperatives (or encourage the dual role of China's tea professional cooperatives associates) give full play to the role of bridges and ties, to carry have been rapid development, business model has also been out cooperation with the processing enterprises in the form of innovative. On the basis of literature review and field contracts or equity and enterprises to establish long-term investigation, this paper systematically combs the model of tea strategic cooperative relations to ensure that tea production marketing channel alliance with professional cooperatives as Stability, continuity and long-term efficiency, to protect the the core, and constructs the overall operation framework of tea economic interests of small farmers scattered within the marketing channel alliance model with cooperatives as the core, organization and market economy status. and decomposes the framework For the horizontal alliance and vertical alliance two components, at the same time this article is the extension of the previous literature and development, having some practical significance.

618 Advances in Social Science, Education and Humanities Research (ASSEHR), volume 106

ACKNOWLEDGMENT REFERENCES Author: Song Chen(1972 -), male, , Fujian, [1] Wu Yannan. China's tea export international competitiveness research doctoral student, college of economic, Fujian Agriculture and [J]. Hubei Social Sciences, 2011 (2): 88-91. Forestry University, research direction for the tea industry [2] Cai Wenzhu, Liu Hua. Problems and Countermeasures of Agricultural Product Marketing Channel Construction in China [J] .Hubei economic management. E-mail:[email protected]. Agricultural Sciences, 2010, 49 (2): 494-496. Corresponding author: Jiangfan Yang, professor, Fujian [3] Ji Zhenhu. Play the role of cooperatives to promote tea farmers to Agriculture and Forestry University, research direction being increase - remember four tea professional cooperatives survey [China], China Tea, 2015 (9): 15-15. for the tea industry economy and management. [4] Qin Zhongchun. A Choice of Institutional Innovation of Farmers' Program of Foundation: China Tea Collaborative Professional Cooperatives - Based on the Investigation of the Reform of Innovation Project, 2011(Program Code：K8015H01C). Tea Cooperative in Gu Shang Jin Biluochun, Suzhou [J]. China Rural Economy, 2007 (7): 60-66. [5] Chen Zhongze, Xie Jijin. Strengthen the management of the implementation of joint-stock system to promote industrial development - remember three green tea professional cooperatives [J]. China Tea, 2005, 27 (4): 35-35. [6] Meng Fei. Alienation Behavior and Regulation of Leading Enterprises[J]. Journal of Anhui University (Philosophy and Social Sciences), 2014,38(5)145-152.

619