System Stability Analysis Of Chinese Pork Market

After our government relaxed the pork market, implemented the multi-channel operation since 1985, pork price began to be determined by market supply and demand and the situation of pork production and supply gradually changed to be better and better, but on the other side, the retail-based supply pattern resulted in the scattered and disordered production, caused turbulence of the pork market. According to the price data of 1985, pork price in China were summed up to be with cyclical fluctuations and the cycles getting longer and longer and increasing volatility. Pork is the main livestock product of public consumption; the pig industry is the core industry of China, the pork market not only relates to the general public's daily life, but also affects the vital interests of companies and farmers. Fluctuations of pork prices will not only raise the pressure people, but also affect the enthusiasm of farmers and their income. As the saying goes, "pig and food, security of the world", stability of pork market is a meaningful career which needs to be launched.Investigate the cyclical reasons of pork price, coordinate the system of government and market, develop the system program, and form a stable, long-term operation mechanism of pork market are research focuses in this paper. This paper analyzes the fluctuation of pork price, flexibility of supply and demand of pork and the growth cycle of breeding pigs and other factors, to find the economic principles hidden in the pork price fluctuations– the cobweb theory, and summarizes the internal transmission mechanism; by analyzing the impact of the external factors of pig production, distribution and marketing aspects, the paper summed up the corresponding measures of pork price fluctuations caused by the external shocks.This paper argues that "extraordinary measures" used by the government can achieve some positive effect, but the bulk of the measures are remedial and caused market disruption and a waste of system resources. Based on the theory of government intervention this paper tried to analyze the role of government when to stabilize the pork market, and summed that the Government should change the direct intervention\ to the necessary regulatory measures and avoid the lack of market self-regulation; this paper also used the pork market system to build the framework of the pork market. Based on the model of the whole system, this paper argues we should predict, control, and supervise the pork market, in order to optimize the desired goals, and then support the healthy long-term development of the pork industry.