Research On Fluctuation And Regulation Policy Of Pork Price In Taian

Pork is one of the most important animal food sources in our country, relating to the pork industry is a pillar industry of the national economy. Since 1985, China’s pork price has been deregulated, pork prices fluctuate frequently, severe, not only affects people’s daily consumption, but also affect the healthy and stable development of the pork industry. The government introduced various price regulation policies, measures, some of them function well, the other’s effectis less than ideal. Therefore, it is necessary to analyze the mechanism of pork price fluctuations in order to initiate scientific and effective control measures.In this paper, we will first analyse the function of pork chain and study internal and external factors which cause the fluctuation, and then we’ll use the seasonal adjustment method, HP filter method and VAR model to analyse pork price of Tai’an City from year 2012 to year 2014. Then we’ll concluse all the policies implemented in our country in recent years, and finally we’ll make recommendations combining the best practices of price control measures in foreign countries.This study showed that:(1) the price of pork is formed in all sectors of the market cost and profit markup, depending on market supply and demand balance.(2) Due to fluctuations in the price of pork hog production, the fluctuation of pork price contains the characteristic as “one long cycle in three years, one short per year.”(3) The self-regulation of market is limited, so the Government must introduce relevant policies on the pork market regulation, maintaining interests of farmers, operators and consumers and ensure long-term healthy development of the pork market.(4) Mitigation pork price volatility should focus on the ups and downs in long period, reducing the amplitude of the fluctuations.(6)To initiate government regulation of the pork market, the key is to stabilize pork prices and suppliment and improve the market system. The focus may be settled in four points: First, to introduce high-tech skills in pork production; Second is to encourage the development of large-scale farming, the formation of dominant pork main producing areas, improve the competitiveness of pork products; Third, try to develop hog futures; Fourth is to strengthen the construction industry association and improve market information dissemination.