The Macro-controlling And Government Governing In The Pig Market

After fluctuating continuously for 20 years, China's pig market begun its most severe fluctuation in 2006. During the course of pig market fluctuations, the question of how the government should act was in spotlight. Circling its main topic in the pig market fluctuations event during 2006-2007, this thesis pays special concern to the government's performance in policy making, and discusses how the government should take actions to reduce the degree of fluctuation, with the aim of maintaining the development of the pig market.In the first half of 2006, the performance of pig market went in to the bottom of the recent years. Then at the end of the same year, the pig market recovered from recession. Pig price began to skyrocket in mid 2007, setting new records in rise speed and rise extent. The severe fluctuation of the pig market in those two years was caused by the following factors: first, epidemic yearly struck pig industry; second, the strategy to develop bio-energy industry caused sharp rise in forage price; third, family farming system could hardly bear risks from the market. In effect, the pig market fluctuation event struck pig peasants in confidence to manufacture, and raise inflation expectation of city residents.During the pig market fluctuation event, the government announced numerous policies. Those policies had its faults in vague targets and inappropriate execution time. However, they produced satisfactory effects in controlling pig prices.To maintain stable development of the pig industry, the government should carry out policies on pig manufacturing and sales. The policies below help to achieve the target: supporting to build pig industrialization system, urging to carry out pig industry insurance, building the system to purchase pig in lowest prices, building pig products information system to support pig price warning system, and paying more attentions to the surveillance of pig market.