To the current way out of the market point of view, the possibility of a precipitous plunge is almost 0, after all, we China is the world's largest demand for pork countries, so a large market gap in that, it is impossible to appear all of a sudden change to four or five dollars a catty of the situation. If the assumption that pork prices fell off a cliff, then this is not only for the breeding professionals of the disaster, may be the entire meat market will bring a huge negative impact. From the cost and time span of raising pigs, raising pigs is not easy, a pig out of the need for a few months to half a year, this half a year of investment for farmers is a considerable input costs, suddenly one day the price fell rapidly, this batch of pigs have not had time to the market has become worthless, it is clear that the farmers will be lost blood money.
We now only see the high price of pork, but we do not see how difficult farmers, their costs are also very high, the price of food is getting higher and higher, the cost of labor is becoming more and more expensive, and then we have to add the cost of the site, the cost of water and electricity, as well as the cost of epidemic prevention, the cost of these costs are fused together, determining the cost of the farmers is only high, not low, for this reason, the rapid decline of pork or even the emergence of the market. For this reason, a rapid decline in pork or even a precipitous plunge is almost impossible, and if such a situation does occur, I'm afraid the first to come out against it will be the farmers.
Farmers suffered a precipitous plunge in the direct consequences of pork stocks continue to decline, the loss of blood and money people can no longer afford to raise pigs, originally raised less or want to raise pigs people also dispel the idea of raising pigs, and finally the supply of hogs is getting less and less, which led to a new round of price increases on the wave of up, this precipitous fluctuations in the market will allow farmers to make irrational choices, and will enter a vicious circle, the end is that the farmers will not be able to make a decision, but will not be able to make a decision. A vicious circle, the end is the pork market is high and low, there is a state of disorder.
In summary, the pork price cliff-style plunge, directly affecting the income of farmers, and farmers' income and determine the problem of the hog market.