Abstract: Due to the characteristics of fresh products such as perishability and short life cycle, as well as the uncertainty of market demand, the operation of fresh products supply chain is more complicated. Therefore, “difficult to sell vegetables, expensive to buy vegetables”, “dull of sale”, “in short supply” has been a hot news. For example, domestic pork prices continued to rise sharply in 2019 due to a pig epidemic in Africa. To effectively control prices and increase supply, more than 2 billion yuan in special fiscal subsidies had been distributed in 29 provinces by the end of August. The typical way of subsidy is sale subsidy and purchase subsidy. Different subsidy methods have significant differences on fresh products suppliers, sellers, consumers and the government, and the fiscal budget restricts the choice of government subsidy strategies.

Key words: fresh products; government subsidizes; supply chain; uncertain demand; capital constrains