论文总字数：20656字

The Economic Impact of the Food and Beverage Industry

by

Maria Guy

Under the Supervision of Zhou Xiao Chen

Submitted in Partial Fulfillment of the Requirements for the Degree of Bachelor of International trade

English Department

School of Foreign Languages

Nanjing University of Technology

June, 2019

Declaration

I hereby declare that this submission is my own work and that, to the best of my knowledge and belief, it contains no material previously published or written by another person or material which has to a substantial extent been accepted for the award of any other degree or diploma at any university or other institute of higher learning, except where due acknowledgment has been made in the text.

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Contents

Declaration 2

Acknowledgements 4

Abstract 5

1.1 Research background 6

1.2 Literature review 6

1.3 Research Methodology 8

2. Economic impact of the food and beverage industry 23

2.1 Employment 23

2.2 Promote growth 24

2.3Product innovation and affordability 24

2.4 Agricultural sector 25

3 The Problems of Food and Beverage Industry 25

3.1 Backward laws and systems 25

3.2 Lack of social responsibility 25

3.3 Information asymmetry 26

4. Countermeasures 27

4.1 Government regulates 27

4.2 Improve regulations and standards 28

4.3 Eliminate information asymmetry 28

Conclusion 28

References 29

Abstract

With the integration of the global economy and the strengthening of international trade, food and beverage safety has no national boundaries. Food and beverage safety issues in any country or region can be spread around the world, and their influence is increasingly related to economic, political and social aspects. Therefore, this paper is mainly divided into four parts. The first part is about introduction about research. The second part is to do simple data analysis in developed countries in the United States to introduce the significant impact of the food and beverage industry on the economy. Then, this paper studies the problems in China's food and beverage industry, and proposes relevant policies and recommendations for the problems in China's food and beverage industry.

Keywords: Food and beverage；safety; economics

1. Introduction

Research background

Food and beverage are the most fundamental health guarantee. The development of the food industry will promote the development of agriculture, animal husbandry, aquaculture and food and beverage packaging materials, and can provide numerous jobs. In any country, the food and beverage industry is one of important industries of the national economy.

Literature review

The Economic Contribution of the Food and Beverage Industry explains how the industry contributes to growth and innovation in the food system; how the industry responds to dynamic consumer demand. The food and drink industry is one of the worlds largest manufacturing sectors and an integral part of the world's social, economic and cultural mix. As well as contributing to the economic development of nations, manufacturers have a key strategic role to play in ensuring fair trade Between nations and future food security against combined effects of climate change, higher global demand and increased pressure on finite resources.^[1]

In this study, there are few research about the economic impact of the food and beverage industry, but after classification, is mainly divided into food and beverage safety, and food and beverage prices for the economy Great influence, therefore, in this study, the food and beverage safety are mainly used as research point.

Frequent food and beverage safety incidents have caused people's psychology to generate a kind of fear, which leads to distrust of consumer goods, which affects the marketing performance of related industries. With the continuous emergence of food and drink problems, the turnover of China's foreign trade has also been affected by certain factors, and the country has to expand its internal demand. To expand demand, it is necessary to make people have the ability to purchase, and then to have a good consumer environment, so that people can rest assured that consumption. Chen, Zhang, Li, Lai , Wang (2019)claims that to eradicate food and beverage safety issues, we must take the road of sustainable development, start from the roots, and adjust the relationship between enterprises, regulatory authorities and consumers so as to ensure the safety of food and beverage promote the harmonious, and healthy development of the economy.^[2]

Huang (2018) requests that safeguarding food and beverage safety is a systematic project that requires the joint efforts of the whole society. The government, enterprises and consumers are fully effective.^[3]

Zhao (2018) thinks that food safety issues are important people's livelihood issues. Experts mainly discuss the impact of food safety on social and economic development, and propose corresponding solutions to provide a reference for food safety management.^[4]

It is necessary to observe the basic situation of food price fluctuations in beverages. Because this has a great impact on a country's economy, we should pay close attention to the trend of food prices, reduce residents' expectations of inflation, and guarantee the normal life of the people. Niu (2014) propose the following aspects: Efforts: First, to maintain policy continuity, continue to implement a proactive fiscal policy and a moderately loose monetary policy, the focus of fiscal policy should be shifted to reduce the tax burden of related foods in beverage companies and residents to ensure that food is in beverages. Supply and residents' confidence in economic growth; second, it is necessary to construct an early warning mechanism for price indices to monitor the trend of key food prices; third, improve the food and beverage reserve system, increase the reserves of various important foods, and make basic supplies Fourth, when introducing price adjustment measures, we should pay attention to adopting various ways to alleviate the impact of price increases on the lives of residents, especially low-income groups, and implement preferential prices for those that meet the basic needs of the people^[5].

Through the process of combing and categorizing the literature, it can be found that many experts have proposed that the food and beverage industry has a great impact on residents and the national economy. Safety is the number one issue. Many experts believe that the safety of food and beverages is related to people's livelihood. Therefore, we must pay attention to it. Therefore, I also conduct research from this aspect. Second, the price of food and beverages.

Research Methodology

• Document Research

In this study, the authors can read many relevant materials in the library and online academic websites, sort out the research objects and research objectives of this paper, and find out about this subject from a large number of documents. Relevant information, give some background knowledge and theoretical basis for this paper.

• Contrast and interpretation.

In the analysis of the literature and materials of this paper, I used the survey and research methods mainly: library books, journal borrowing, and HowNet's network methods to obtain relevant documents and data, and analyze them to pass specific Data improvement paper. Persuasive.

2. Economic impact of the food and beverage industry

The International Economic Development Board issued a report detailing the economic impact of the food and beverage industry on the national economy. The report is part of a series of studies designed to measure the economic impact of certain industries.

The impact of industry on the regional economy; how it responds to emerging and dynamic consumer demand. Therefore, in this chapter, the main brief introduction is to introduce the impact of the food and beverage industry on the economy as an example from the United States. In the third chapter, we will write about the problems that China has in the food and beverage industry. The development of the food and beverage industry in USA is more developed than China. So, comparing the food and beverage industry USA and China is very important.

2.1 Employment

The food and beverage industry employs around 1.5 million people in more than 20,000 companies, which account for 13% of total US manufacturing employment.

It has made a particularly strong contribution to low-population countries, accounting for more than 20% of all manufacturing employment in Nebraska, Idaho, Iowa, South Dakota, Delaware, and Hawaii.

Figure 1 Food and Beverage Processing Sectors by Employment

we can see that the occupies more than 89000 jobs, canned fruits and vegetables, pickling and drying departments have created a total of 73,000 jobs, and the soft drink and ice manufacturing sector has a total employment of about 58,000 (Fugure 1).

2.2 Promote growth

. In USA, each dollar produced by the industry generates additional economic activity from $0.40 to $1.35 in the local economy. In addition, with the expansion of international sales, the industry's output per dollar generates $1.27 in economic activity in the US economy.

2.3Product innovation and affordability

At least 40% of new foods and beverages in the industry have positive nutritional or health characteristics based on consumer demand for health products.

The industry spends $5.4 billion a year on research. Venture capital firms reinvest $3 billion to fund innovation in the food market and processing technology.

The industry helps to increase the affordability of food. American consumers earn less than 10% on food, while fewer consumers in other comparable countries.

2.4 Agricultural sector

The industry transforms raw produce from more than 2 million farms into consumer food and beverage products; they are sold through nearly 700,000 retail and food and beverage outlets.

The industry provides links between farms and retailers to meet the needs of 320 million American consumers.

The Problems of Food and Beverage Industry

3.1 Backward laws and systems

At present, CAC is a universally accepted food and beverage safety standard. In most European countries, more than 80% of companies use high-standard food hygiene standards systems, while Japanese companies in Asia, 90% of companies also use the high-standard Hispanic health standard system, and some country has exceeded the international standard CAC, but China has not yet reached international standards. Not to mention a food hygiene standard system that meets high standards. At present, although China has established a set of relevant laws, regulations and departmental rules, the regulations related to the speed of China's market economy development are obviously unable to catch up with the actual needs. The coverage of relevant laws is far from enough, and there is a gap in standardization work.

3.2 Lack of social responsibility

In order to pursue high interests, some food and beverage companies will be irresponsible and have no sense of responsibility to the society. They will find various legal loopholes that can reduce costs or increase prices to obtain illegal profits. These are harmful effects for society and the health of the people. Moreover, some relevant regulatory authorities, who ignore the irresponsible behavior of these companies, also help them produce goods to get the benefit for themselves.

3.3 Information asymmetry

The occurrence of information asymmetry has caused unbalanced to consumer rights. Because of information asymmetry, consumers do not maintain their own consumption rights, while producers who produce food and beverages ignore their safety issues, only care the profits that the industry brings to production. Consumers cannot understand the asymmetry of their product quality before purchasing, which will lead consumers to be at a disadvantage in food and beverage safety. On the issue of food and beverage safety, when the quality of food and beverage involves chemical structure, chemical toxin residues or harmful microorganisms, it is impossible to judge, which gives enterprises the opportunity to produce inferior food.

After the analysis in the second chapter, it can be seen that the impact of the US food and beverage industry on the economy is very significant, and it is far better than the food work effect in China.

4. Countermeasures

    In terms of regulation, the UK has established an independent monitoring agency that is not affiliated with any government department, responsible for the overall food and beverage safety, and establishing authoritative food and beverage standards. At the same time, a food and beverage safety alarm system was established to unify the food and beverage poisoning notification system, the laboratory reporting system and epidemiological communication and information network systems, the French develop competitive agriculture that can fully consider the economic interests of producers, consumer demand and environmental protection, and be sustainable while achieving food and beverage safety information. Open to ensure the safety of food and beverages.

4.1 Government regulates

Improve government regulations and imitate laws of other countries. Such as CAC, to let more companies and departments understand its importance, and establish an update mechanism in the process of promoting the construction of laws and regulations, according to the market. New violations in the economy respond quickly, and legal benchmarks and related laws should be updated and improved in advance, regardless of conditions. The formulation of laws and regulations should comply with international standards as soon as possible to eliminate the restrictions imposed by China on international “green barriers”. This is a strategy an initiative to avoid importing inferior foods and beverages from two relevant Chinese standards to optimize the food and beverage safety environment in China.

4.2 Improve regulations and standards

      government functions need to strengthen supervision of food companies and resolutely crack down on companies and individuals that manufacture and sell fake and shoddy food and beverages. After making economic penalties, criminal responsibility should also be pursued. Relevant departments should supervise the raw materials to sales of food and beverages, improve market access conditions, eliminate unqualified enterprises, establish integrity documents of enterprises and enterprises, make them illegal, and be subject to lifelong supervision. Promulgating a sound legal system and mechanism so that relevant employees can be prevented from being punished and an oversight department can be established.

4.3 Eliminate information asymmetry

Finally, from the perspective of consumers and producers, consumers should maintain their rights, pay attention to the importance of food and learn beverage safety. On the one hand, consumers and producers should implement transparent consumption and establish a “transparent window” to let consumers know about their own food purchases. On the other hand, consumers learn how to judge the quality of food, promote the purchase of food and beverages from formal channels, have a judgment on some cheap incentives for bait, learn relevant laws and regulations, and raise awareness of rights protection. Report food and beverage safety issues in a timely manner, and cooperate with relevant departments to do a good job in investigation.

Conclusion

   The solution to the safety of food and beverage in China is still in the stage of summing up and perfecting. To solve the problem of food and beverage safety, we must not only hope that the company will be self-disciplined, but also need to work together with the law, supervision and individual consumers. This is the correct way to solve food safety problems.

References

[1]Chen Cuishan, Zhang Weiran, Li Chunsheng, Lai Xuhui, Wang Denan. Analysis of the Influence of Food Safety on Social Economic Development and Countermeasures[J]. Grain Science and Technology, 2019, 44(01): 28-29.

[2] Huang Yuqi. The impact of food safety on economic development under market economy conditions [J]. Science and Technology Economic Guide, 2018, 26 (13): 218 220.

[3] Zhao Zhimei. Research on the relationship between food safety and the development of China's sports industry in commerce and trade circulation [J]. Business Economics Research, 2018 (05): 187-189.

[4]Gu Xinyu. Research on the impact of food safety on China's agricultural product export trade [D]. Minzu University of China, 2015.

[5] Zhang Wei. The impact of food safety on China's economy and its countermeasures [J]. New Economy, 2014 (17): 32.

[6] Niu Wenkuan. On food safety and economic development [J]. Inner Mongolia Science and Technology and Economy, 2014 (02): 44 46.

[7] Bian Wei. The impact of food safety on economic development under market economy conditions [J]. Journal of Changchun University of Science and Technology (Social Science Edition), 2012, 25 (07): 107-108.

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