Evolution Mechanism of Fresh Agri-Product Circulation Pattern: An Analysis from the Angle of Labor Division

This paper aims to study the evolution mechanism of fresh agricultural products (FAP) circulation patterns and predict the evolution trend. We investigated the development process of FAP circulation patterns in chronological order and brought up six basic modes. Each basic mode has various specific patterns. Then we explained the evolution mechanisms from the angle of labor division and put forward two concepts: involution of labor division and externalization of labor division. The circulation process includes both involution and externalization of labor division which are opposite processes. Involution of labor division increases administrative costs but decreases transaction costs. This study showed FAP circulation pattern is the result of waxing and waning affections of externalization and involution of labor division. The pattern which can minimize total cost will be prevalent.