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Innovative Practice China: Collective action by small-farm households in big markets- Ruoheng farmer watermelon cooperative

In the world trading system, China is a large country in terms of both production and consumption. She is easily affected by the international market and at the same time has a big influence on it. As a country with a large agricultural population and under-development in rural areas, China has very serious agricultural problems. China's produce system is in a chaotic phase, characterised by considerable diversification. Various forms of institution innovation are being stimulated by new factors, both incentives to produce and compulsory regulations. These innovations enrich rural markets and the produce supply chain. The farmer cooperative is a theoretically and practically feasible institutional innovation created by this environment. Small-farm households are entering markets collectively. Many Chinese and foreign scholars have been researching this field from different perspectives.

This paper chose the Ruoheng farmer watermelon cooperative to research, and analyses the institutional innovation that they have made to meet the challenges of large markets as a participant in the supply chain.

This publication forms part of the Regoverning Markets project.

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