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Weird egg price plummet, why eggs sold into the price of cabbage?

Recently I am very busy, busy for their own house to do all kinds of decoration configuration, until the last period of time to go to the supermarket to shop around to purchase some supplies, in the process of shopping for a situation that shocked me, which is how the eggs will be so cheap? At that time I was from the supermarket inside the box of eggs, did not care too much on the shopping cart, until the checkout time to find that the price of a box of 15 eggs, but the price of more than 5 yuan, the average price of each egg above the price of only 0.3 yuan, I was also a little surprised, asked the cashier the price of the eggs is not playing the wrong one.

The cashier told me that there was no mistake and that the price of the eggs was the same recently. I was very strange, but did not ask more, and so back home after a serious study of all kinds of information to find that the egg problem is afraid that really is not simple, today we will talk about one of the most commonly eaten food in our lives, eggs it.

One, eggs in the end how?

I believe that your friends will never be like me so four bodies are not hard to distinguish between the five grains, due to their own alone, usually eat in the company cafeteria, the night in order to lose weight is also a matter of making do, for the eggs really know very little about it, I believe that we have found the reality of the eggs prices are getting lower and lower, but what happened behind the scenes, we may not be too clear, we will look at today! What happened to the eggs we eat every day?

Eggs as the Chinese food in the most important source of protein, can be said to have long been deep into all aspects of life, I remember my grandparents on the living often say, in the old generation of people's lives, eggs can be said to be the only nutritious food in the family, only sick or birthday can eat, can be said to be that era of a luxury. After the reform and opening up, our supplies are greatly enriched, eggs have become more and more, can afford to eat eggs is no longer a problem, I believe that eating an egg for breakfast every day has become the habit of most people. As a daily necessity, the supply of eggs has also been in a very stable state over the past few decades, and there have been very few cases of eggs being unavailable for purchase or supply being cut off.

But the problem still appeared, this problem appeared in 2014, according to the "Chongqing Business Daily" and other related media reports, 2014 is the best year in the egg price quotations, the ex-factory unit price of each catty of eggs is as high as 5.45 yuan, and the market lasted for a whole year, due to the price of the egg is unusually stable, the egg in that year was called the "rocket eggs".

Because of the rapid rise in egg prices, from enterprises to farmers began to join the full expansion of the farming industry, various egg and poultry enterprises have to expand the scale of farming, many emerging enterprises and farmers have also increased farming efforts, coupled with the continuous decline in the price of corn as the main feed, farmers continue to expand the scale of is the stock of commercial egg-laying hens surge.

I pulled up the egg price market analysis chart, according to China's poultry disease network data show that, as of the end of May, the unified market offer of eggs around the world has reached a nearly five-year period of the history of the lowest price, including Hebei Province, the price of eggs reached a national minimum of 1.86 yuan per catty, the highest price of Jiangsu, but also 2.01 yuan per catty, the form of this low price has been formed. At the same time, the ex-factory cost of eggs is as high as 2.34 yuan, it can be said that the eggs have appeared very serious cost and price inversion phenomenon, a lot of farmers into the more they raise the more they lose the more the point, would have to be stocked more than 500 days of egg-laying hens, and now a lot of them are raised to three to four hundred days have been slaughtered and sold, the price of chicken in some areas has also fallen to less than 2 yuan per catty, driven by the successive price of pork! Down. There are even some media reports that newborn chicks are to be scalded to death by boiling water as landfill because no one cares for them, and eggs that have been fertilized cannot be hatched to be sold as ordinary eggs, and some farmers even throw the eggs into the gutter for centralized destruction.

Seeing such reports, we do not feel déjà vu, in our high school history textbooks often in the capitalist economic crisis, the milk will be poured into the river but not sold to the individual phenomenon, and we are now eggs are not a few points of resemblance?

Second, egg overcapacity is actually a ludicrous pseudo-proposition

I think the media reports and data seem to show that the eggs are beginning to enter an overcapacity environment, the factory price can not cover the cost of farming, this is how serious the problem? However, the reality is that China's egg overcapacity is a false proposition, why is that? On the one hand, the large-scale listing of our eggs has led to a sharp drop in sales prices; on the other hand, in many poor areas, poor families still have children can not afford to eat eggs, in the various crowdfunding platforms for children in poor areas to raise nutritional breakfast program still exists in large numbers, then back to our history textbooks said that the question, why the milk would rather be poured out can not be given to the poor?

For socialist China, the so-called logic of our history textbooks that say the all-pervasive capitalism doesn't make any sense at all, but the problem we have now is similar, and it's a matter of cyclical regulation of the market. In economics, eggs, rice and vegetables are necessities of life, and the characteristic of necessities of life is that their price elasticity is seriously inelastic, what does it mean by seriously inelastic? To put it simply, it means that the quantity of eggs, grains and vegetables that we eat every day is basically fixed, which leads to the fact that we have to buy these necessities even if their prices go up, and we have no way to buy more even if their prices go down. Eggs, for example, in addition to a few can be cured into salted eggs to lengthen the shelf life, most of the shelf life of the eggs are very limited, so each household is not able to because of the current price is cheap, I will buy more eggs to hoard them, the end result is the emergence of the so-called economics, "cheap grain hurt the farmers" phenomenon. The more the eggs this kind of necessity of life appeared bumper harvest, often the more let the farmers to bear a huge blow, this is the problem of the eggs.

Our country for food has been the price protection mechanism, if the price of food is too low will be used to protect the purchase of food, but for poultry, eggs and milk, vegetables, fruits and other so-called cash crops but the lack of such a mechanism to smooth out the economic cycle. In production, a moment of price increases will lead to a large number of enterprises and farmers to a swarm of breeding, the result is soon because of overcapacity egg prices plummeted, the need to kill chickens to throw the eggs in the form of production capacity, so that the price of eggs rose again, and then repeat the previous cycle. We have seen this example countless times on top of pork, and in order to solve this problem, as early as a few thousand years ago in the Han Dynasty has been proposed by Sang Hongyang even loss mechanism.

What does equalization mean? It is to intervene in the price of these necessities of life through the government, and when there is a problem similar to the egg problem, the government will step in to solve the seeming surplus by purchasing them at a protected price, stockpiling them, or transporting them to poorer areas, and distributing them in the form of government subsidies to the poorer inhabitants, so as to digest the excess capacity. And after that it is necessary for the government to introduce a suitable long-term mechanism to organize a reasonable production planning, neither because of the price rise on the crazy increase in production capacity, nor because of the price fall on the blind de-capacity, so as to let the price into a more stable cycle.

In macroeconomics, the Keynesian school of thought has been proposed through government intervention to regulate the behavior of the cycle, which has been used at the level of our macroeconomic policy is very much in place, but at the micro level is still a lack of real application, the problem of eggs is really not a problem of overcapacity, but rather the unequal supply and demand, I hope that this problem can be really solved, rather than let the market development it.

Economic perspective view of the world WeChat public number Jianghan vision observation ID: jianghanview