Incentive and Supervision Mechanism within High Quality Pork Supply Chain Based on Principal-Agent

For applying supply chain management, constructing strategic partnership among hoggeries, slaughtering and processing enterprises, and supermarkets, is the effective method to solve pork quality and safety problem in China at present. Based on the analysis of principal-agent issue in high quality pork supply chain, this paper comprehensively considers the elements of material incentive, mental incentive, supervision and punishment, and constructs and analyses incentive-supervision model of high quality pork supply chain. It is shown that incentive and supervision, material incentive and mental incentive play important roles in improving cooperation among hoggeries, slaughtering and processing enterprises, and supermarkets, and decreasing immoral interest coefficient, cooperation cost coefficient, and supervision cost coefficient will be benefit to avoiding immoral behaviours of hoggeries and supermarkets.