The fluctuation of pig prices and the identification of major drivers in China.

In recent years, the domestic live pig price has risen and fallen rapidly and fluctuated frequently, which has greatly impacted the live pig industry. The level of price volatility in the pig market has served as a significant indication of the progress of the agricultural sector. Identifying the do...

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Main Authors: Junguo Hua, Jing Ding, Yufan Chen, Lulu Kang, Haiying Zhang, Junhua Zhang
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2024-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0313982
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author Junguo Hua
Jing Ding
Yufan Chen
Lulu Kang
Haiying Zhang
Junhua Zhang
author_facet Junguo Hua
Jing Ding
Yufan Chen
Lulu Kang
Haiying Zhang
Junhua Zhang
author_sort Junguo Hua
collection DOAJ
description In recent years, the domestic live pig price has risen and fallen rapidly and fluctuated frequently, which has greatly impacted the live pig industry. The level of price volatility in the pig market has served as a significant indication of the progress of the agricultural sector. Identifying the dominant factors affecting the fluctuation of pig prices has become more important. Based on the monthly data of the pig industry from February 2009 to December 2022, this paper constructs an index system of influencing factors of pig price from four aspects: uncertain impact, supply factors, demand factors, and macro-environment factors. By using the transfer model of the Markov regime (MS-VAR), we obtained the probability plot of zone transition for pig price volatility, the impulse response effect diagram of factors affecting pig price, and the cumulated impulse response effect diagram of factors affecting pig price, and analyze the reasons for the ups and downs of pig price according to the above results. The findings indicate prominent features of zone transition in the price fluctuation of China's pig market. From 2017 to 2022, the domestic pig price frequently switches between rising and falling zones, and the "falling pig price stage" and "rising pig price stage" in the non-stationary state last for a relatively short and discontinuous period. There is little probability that the price of live pigs will directly change from rising to falling, and there will be a smooth buffer stage in the price rise and fall process. Among the factors that affect the fluctuation of live pig prices, the dominant factor of frequent and large fluctuation of pig prices is the pig epidemic situation in external factors. Among the internal influencing factors, the changes in farming costs have the greatest significant influence on the fluctuation of pig prices. These results provide a decision-making reference for legislators to carry out epidemic risk prevention and control better, stabilize the market pig price, and provide empirical evidence for market participants to accurately avoid price risks through multiple channels and ways and ensure stable profitability.
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spelling doaj-art-727ced874e11421c98cf5b07fc8a552c2025-08-20T01:53:22ZengPublic Library of Science (PLoS)PLoS ONE1932-62032024-01-011911e031398210.1371/journal.pone.0313982The fluctuation of pig prices and the identification of major drivers in China.Junguo HuaJing DingYufan ChenLulu KangHaiying ZhangJunhua ZhangIn recent years, the domestic live pig price has risen and fallen rapidly and fluctuated frequently, which has greatly impacted the live pig industry. The level of price volatility in the pig market has served as a significant indication of the progress of the agricultural sector. Identifying the dominant factors affecting the fluctuation of pig prices has become more important. Based on the monthly data of the pig industry from February 2009 to December 2022, this paper constructs an index system of influencing factors of pig price from four aspects: uncertain impact, supply factors, demand factors, and macro-environment factors. By using the transfer model of the Markov regime (MS-VAR), we obtained the probability plot of zone transition for pig price volatility, the impulse response effect diagram of factors affecting pig price, and the cumulated impulse response effect diagram of factors affecting pig price, and analyze the reasons for the ups and downs of pig price according to the above results. The findings indicate prominent features of zone transition in the price fluctuation of China's pig market. From 2017 to 2022, the domestic pig price frequently switches between rising and falling zones, and the "falling pig price stage" and "rising pig price stage" in the non-stationary state last for a relatively short and discontinuous period. There is little probability that the price of live pigs will directly change from rising to falling, and there will be a smooth buffer stage in the price rise and fall process. Among the factors that affect the fluctuation of live pig prices, the dominant factor of frequent and large fluctuation of pig prices is the pig epidemic situation in external factors. Among the internal influencing factors, the changes in farming costs have the greatest significant influence on the fluctuation of pig prices. These results provide a decision-making reference for legislators to carry out epidemic risk prevention and control better, stabilize the market pig price, and provide empirical evidence for market participants to accurately avoid price risks through multiple channels and ways and ensure stable profitability.https://doi.org/10.1371/journal.pone.0313982
spellingShingle Junguo Hua
Jing Ding
Yufan Chen
Lulu Kang
Haiying Zhang
Junhua Zhang
The fluctuation of pig prices and the identification of major drivers in China.
PLoS ONE
title The fluctuation of pig prices and the identification of major drivers in China.
title_full The fluctuation of pig prices and the identification of major drivers in China.
title_fullStr The fluctuation of pig prices and the identification of major drivers in China.
title_full_unstemmed The fluctuation of pig prices and the identification of major drivers in China.
title_short The fluctuation of pig prices and the identification of major drivers in China.
title_sort fluctuation of pig prices and the identification of major drivers in china
url https://doi.org/10.1371/journal.pone.0313982
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