The Research Of Mutton Price Formation Mechanism

In recent years, with the development of economy, the sheep industry has been becoming a pillar industry of our country. Because of its unique natural conditions and geographical advantage in Inner Mongolia, the production of mutton and breeding scale occupies a leading position in the national animal husbandry. Because of the characteristics of mutton’s high protein and low fat, it is becoming more and more popular. As the mutton consumption increasing, it will lead to the development of the sheep industry.Therefore, based on the theory of demand and supply, using the data of Chinese statistical yearbook, statistical yearbook in Inner Mongolia, etc. Firstly, applying comparative analysis methods to analysis the mutton price changes of Inner Mongolia in recent years, and comparing it with the national mutton price changes; Then applying econometric analysis method to establish the log-log linear regression model for data analysis, from the two aspects of supply and demand factors of mutton price changes to research, through the forecast test to compare the predicted and actual values of mutton prices, and through the scene simulation to discuss the changes of each variable’s influence on the price of mutton.Research shows that the mutton price movements of Inner Mongolia and the nationwide were all risen, but they are all falling these two years.from the angle of supply, mutton production is influenced by the last issue of mutton price and mutton sheep slaughtering rate. From the angle of demand, mutton consumption is influenced by the per capita net income of residents, the current mutton price and pork price, we can find a certain error between the predicted and actual values, it shows that the actual supply and demand not reached equilibrium.