The agricultural sector in China has entered into a new development stage. The supply of agricultural products can basically meet the demand. With the rise of the income, food safety has become one of the key concerns in the consumption of agricultural products in China at large. On the other hand, competition becomes more bitter in agricultrual sector after China joined in WTO, but most firms don't prepare well for the challenge. For example, the logistics in agricultural business is lagging, farmer's market power are weakly. Many researchers believe that supply chain management is a effective way to improve the development of China's agricultural industrialization, but there's little empirical research in this field.Adversarial relationships have long dominated business relationships, but Supply Chain Management (SCM) entails a new perspective. SCM requires a movement away from arms-length relationships toward partnership style relations. SCM involves integration, co-ordination and collaboration across organisations and throughout the supply chain. It means that SCM requires internal (intraorganisational) and external (interorganisational) integration. Internal and external integration is the key characters of supply chain management. This dissertation analyses the relationship between internal and external integration processes, their effect on firms' performance and their contribution to the achievement of a competitive advantage, further more, the paper develops a hypothesis model about the relationship between internal and external integration, their effect on firm's performance from a logistics perspective.On the basis of literature, this dissertation made systematic analysis for drives and obstacles of supply chain integration. We made drives of supply chain integration attribute to bargain cost(including scale economy), market power and uncertain factor and used new-classical economic theories to explain obstacle factor of integration as endogenous bargain cost. As supply chain integration results and roles, this paper included: (1) cooperationbehaviors of members could reduce risk and improve efficiency for logistics program. For efficient cooperation supply chain members must share information including not only bargain data and strategy data. (2) cooperation can eliminate waste and repetitive works. In traditional logistics channel there were plenty stocks so that to bring about much risk for members. Through information sharing and strategy coordination supply chain members can eliminate and reduce risk that resulted from stock forecasting. (3)When supplier and manufacturer like to share relative information about companies, supply chain management is a good choice. Supply chain management demand high harmony of whole chain members and support each other. According to summarize enterprises competition theory, this study set up hypothetical model for agricultural products supply chain integration performance to try to quantitatively analyze integration performance. This research investigated two links, processing and supplier. On Cristina and Eva Ventura (2003) opinions, this dissertation divided supply chain into internal integration and external integration on based of enterprises boundary and explored two stage integration effect on logistics ability, supplier performance and firms performance respectively and at last presented integration performance model of agricultural products supply chain.As a empirical study, a Structural Equation Modeling method was employed to analysis survey data and to verify the hypothesis model. This paper used Structural Equation Modeling to agricultural products processing firms(most were leaded firms) of Jiangsu. After investigation we used Crobach's a with SPSS software to make Reliability analysis. The results found most question that can be acceptance and removed a few question not passed. With AMOS 4.01 software we made SEM analysis and estimated model parameters with max likelihood. There are some generic results on the integration-performance relationship