Or the old saying: market prices are affected by supply and demand, of course, in addition to the author of the above supply and demand impact, there are costs and other places to consider.
The root cause of the soaring pork market in the first half of this year is that the supply is less than the demand, and there are more people who want to eat pork, but not as much pork can be supplied to the market.
That's the root cause of the soaring pork prices in the first half of this year as well.
Of course, the author is talking about the root cause according to the market, so what is the cause of the lack of supply of pork in the market?
There are many reasons, originally in the past two years we have a policy of banning small and medium-sized retail pig farming, which reduces the amount of pork supply on the market.
And another aspect, this year China encountered a large-scale African swine fever, resulting in a large-scale reduction in the number of hogs out of the herd, which is another reason.
But with the large amount of capital into the pork market, as well as we also began to release some of the reserve frozen meat, increasing the number of imported pork?
This series of policies down the road, the price of pork has been brought down, and recently the price of pork in some areas has been less than 25 yuan per catty.
So pork prices in the end there is no rebound possible?
1, pork prices are likely to rebound
I can certainly say that the market price of pork is likely to rebound.
The reason, or the author said supply and demand determine the price.
To put it bluntly, if there is a large-scale outbreak of African swine fever or other reasons, resulting in the market supply of pork is greater than the demand, the price of pork will still rise.
This is the basic law of the market economy.
2, we have for pork price control what method?
The pork issue is actually a livelihood issue, is a pretty important issue, after all, the main use of meat by our residents is pork.
And regulating the price of pork is actually quite a lot.
Such as increasing the number of imported pork, the introduction of incentives to allow capital into the farming industry to expand supply, release frozen meat stocks.
But having said that, this fundamental approach, or to expand the number of pork supplies on the market.
And the current price of pork in China is actually still on the high side.
After all, and pork prices have a lot to do with the price of feed as well as ? meat yield?
We don't have the kind of natural big farm conditions that the American Empire has, and the corn and soybeans that pigs eat need to be imported.
So it is impossible for us to have a lower price for pork than the US, it is an inherent shortcoming.
But our current policy is to encourage the hog industry to scale up so that more companies can join the competitive industry.
Only with more pork available on the market can we buy pork at lower prices.
That's good for us consumers.
On the other hand, we need to increase our research on biology.
After all, a few more bouts of African swine fever and the farming industry would have lost a lot of money, and the price of pork for us consumers would have gone up as a result.
Only the underlying problem? All kinds of swine fever, as well as other diseases of pigs to research thoroughly, can solve the above problems.