The Vertical Constraints of the Agricultural Product Prices

This article studies agricultural product transfer process, and gets the reason for that the price gap between the origin and the final markets becomes bigger. By analyzing of enterprise´s behavior, this paper demonstrates the feasibility of vertical constraints of agriculture prices to save cost. The final conclusion of the paper is that the vertical constraints can improve the cooperation efficiency of the members on the supply chain, and economize the resources costs and the society management cost.