Have you ever wondered why the price of pigs in China swings like a pendulum? It’s a complex dance of many factors that leave pig farmers and consumers guessing. Let’s break it down!

First off, the price of live pigs in China has been on a rollercoaster ride for years. This isn’t just a little blip; it’s a big deal that affects the entire pig industry. The ups and downs of these prices are like a barometer for how well the agricultural sector is doing.

So, what’s causing all this chaos? We looked at data from February 2009 to December 2022 to figure it out. Four main areas influence pig prices: unexpected events, supply factors, demand factors, and broader economic conditions. Using a fancy model called the Markov regime transfer model (MS-VAR), we found some interesting patterns.

From 2017 to 2022, prices were like a yo-yo, bouncing between rising and falling zones. These phases were short and didn’t flow smoothly. It’s like the prices needed a breather before changing directions.

Now, what’s making the biggest impact? Surprisingly, pig diseases are a major factor driving these price swings. Among internal factors, changes in farming costs also play a big role.

Knowing this can help policymakers and farmers stay ahead of the game. They can better manage disease risks and stabilize prices, making the pig market more predictable. It’s like having a crystal ball to dodge price risks and secure steady profits!

Understanding the Wild Ride of Pig Prices in China

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