Research on Profit Distribution Between Dairy Farmers and Manufacturing Enterprises in Dairy Supply Chain Based on Qualified Rate

Abstract

As an indispensable industry for the health and prosperity of the Chinese nation, dairy industry is a symbolic industry of agricultural modernization and a strategic industry of coordinated development of primary, secondary and tertiary industries.With the rapid development of China's dairy industry, China’s dairy product quality and safety risks still exist.The imbalance of profit distribution is one of the important reasons for the confusion of dairy market and quality and safety problems.The essence of the normal operation of the dairy supply chain and the guarantee of the quality and safety of dairy products lies in the correct handling and coordination of the interest relationship between the enterprises in each node of the supply chain.Reasonable benefit coordination mechanism and fair benefit distribution mode are of great significance to ensure the quality and safety of dairy products, maintain the stable relationship of dairy supply chain, and promote the healthy and sustainable development of China’s dairy industry.This paper discusses the optimal quality and safety level and optimal revenue of two-stage dairy supply chain based on the pass rate of dairy farmers and dairy processing enterprises under decentralized and centralized decision-making.In order to improve the quality efforts of dairy farmers, the internal and external loss sharing contract is designed, that is, dairy farmers and dairy processing enterprises share consumer losses, whilemanufacturing enterprises provide certain quality cost subsidies for dairy farmers. Finally, through the example analysis, it is verified that the benefit sharing and risk sharing between dairy farmers and national processing enterprises can be realized through the contract.Through contract coordination, the profit distribution of dairy farmers and processing enterprises and the quality and safety level of supply chain were optimized, and the importance of quality control in raw milk production was further verified.