China's food market deterioration has four major promoter: the food production operators lack of morality; the second is cast a "toxic" low cost, punishment is insufficient; the third is the regulatory system is not perfect; the fourth is consumer awareness of self-protection is weak, feedback mechanism immature.

In recent years, drainage oil, toxic, tonyred, clenbuterol, Hot pot, rice flavor, melamine tainted steamed buns...... All kinds of food problems, shocking. Food safety problems repeatedly, frequently occurred. With the expansion of the scope of the problem, China's food safety problem is not only a single field of management, and the real beginning to gradually affect the national economy and the people's livelihood. So, why there is such a vicious cycle of food markets, food safety incidents in the end what is the reason behind what is driving the market a step by step bad?

Cause a variety of food safety incidents, from the business point of view, the so-called market is bad is a low cost advantage to eliminate the process of high-quality products. Dyeing steamed bread event as an example, the illegal businesses from supermarket shelves "recall" expired bread, if abandoned is the merchant is a direct economic loss, and if taken to the further processing of the skillet, add preservatives, and everything becomes new bread, originally negative profits become positive. Due to the asymmetry of information in the food market, consumers have no ability to distinguish the bread has not been dyed, and the average cost of illegal dyed businesses is relatively low, the price is relatively cheap, consumers will choose to buy a relatively cheap violation of the rules in the case of non informed. If unchecked, in the fierce market competition, those refused to cast business "toxic" will be in the competition are being phased out and illegal businesses are able to bigger and bigger. Also produced the phenomenon of economics called "bad money drives out good money".

Promote the phenomenon of the market environment factors are mainly the following aspects:

1 lack of responsibility, food production operators lack of morality

China is in the transition period, the lack of social responsibility of some practitioners, lack of strong constraints on corporate beliefs, and then in the absence of market regulation, and ultimately lead to the production of food safety issues.

Some illegal enterprises know the dangers of their products, such as illegal mixed with poison bread workers, I will not eat the thing to eat their own production. And know its harm is still mass production, threatening the health of consumers. Part of the illegal enterprise is not clear about its behavior may cause potential harm, just blindly follow the trend, an accident is to industry group behavior as an excuse to were shirk responsibility. Can say, add these violations, counterfeiting cast poison behavior are and enterprise moral landslide are inseparable, the lack of ethics is amplified in the lack of market supervision, and further lead to the variety of food safety problems.

2 investment "poison" is too low, the punishment is not enough.

However, the lack of moral is only a reason for the food market to become "bad", which leads to the lack of the main reason of the lack of market morality.

Generally speaking, the cost of the product safety is higher than the risk of punishment, the enterprise may choose to relax the regulation and get more benefits. When there is a certain kind of investment in the industry, the behavior of the other businesses observed that such a large profit margins, and will not be punished by their profit, it is easy to be seen as the industry's internal indulgence, in the interests of the interests will tend to choose to ignore the health of consumers, and to imitate the illegal behavior. When a industries illegal wind and the lack of clear punishment mechanism, coupled with the punishment to focus on combating the exposure object, businesses in the industry is prone to think that such violations of risk sharing to each business head on is minimal, resulting in more violations.

Law must play a deterrent effect, otherwise it will encourage the hearts of the people involved in the case. Recent food safety incidents, Shuanghui lean events, dismissed the Jiyuan subsidiary of four executives and government officials; Shanghai Lianhua Supermarket dyeing steamed bread event, supermarket management personnel is suspended and economic sanctions, government responsible person demerit, removal from office. Above cases are not subject to criminal penalties. These penalties for companies are not touch their business, but also can not afford to deter the role of the industry. In the melamine incident, despite the injury to hundreds of thousands of children's health, winning six lives, but there are still many involved non-performing enterprises to escape legal sanction, about criminal punishment against surface is not wide, in case a suspected the principal in production and sales of dozens of tons of milk powder but also sentenced to imprisonment for three years and three years probation. The offenders have fluky psychology, in this view, causing such a big problem in the event processing is just so, while other violators of punishment will only lighter lighter punishment.

Law to develop more and more fine, if not strictly enforced is not conducive to things. Therefore, in order to fundamentally curb manufacturing false behavior, we must at the same time, increase law enforcement and punishment, let fraud is far greater than the cost of fraud of income, and makes the fraud shrink back at the sight.

3 supervision system is not perfect, enterprises evade supervision psychology

In addition to the above reasons for the lack of punishment, the accountability of regulators is not in place is one of the core reasons for food safety issues.