Research on Government Subsidy Policy of Grain Supply Chain Considering the Efforts of Loss Reduction

Taking a grain supply chain (GASC) with a producer and a retailer as the research object, to encourage supply chain members' efforts on reducing grain quality and quantity losses, government will offer the subsidy. The paper constructed and analyzed four subsidy models. Findings: (1) Under the four modes, the wholesale price is negatively correlated with the producers' efforts of loss reduction (EOLR), positively correlated with the retailers' EOLR, and negatively correlated with the retail price and the p roducer' and retailer' EOLR. (2) The GASC members' EOLR can have a "spillover effect", meaning that their own EOLR can benefit the other party. (3) When the subsidy coefficient meets a certain value, the government subsidies for the EOLR of supply chain members can increase the profits of the producer and the retailer, and can stimulate the members to take the efforts to reduce losses, achieving the goal of "food loss and waste".