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A New Equilibrium Strategy of Supply and Demand for the Supply Chain of Pig Cycle

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  • Changxiang Lu
  • Jiaqi Fang
  • Shaochuan Fu

Abstract

The pig market had experienced a cycle of price rise and fall, also known as the “pig cycle.” This paper analyzes the fluctuation relationship between pig price, pig supply, and pork demand, constructs a system dynamics model of the pig industry by decomposing the structure of the pig supply chain, and then discusses the causes of “pig cycle,” as well as the supply chain management strategy and industrial policy, to stabilize the pig industry market. Research shows that reducing the cost of pig breeding, countercyclical adjustment, and government macrocontrol can effectively reduce the fluctuation of pig prices. Among them, reducing the pig breeding cost is the most effective long-term strategy to stabilize the pig price.

Suggested Citation

  • Changxiang Lu & Jiaqi Fang & Shaochuan Fu, 2020. "A New Equilibrium Strategy of Supply and Demand for the Supply Chain of Pig Cycle," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-13, September.
    • Handle: RePEc:hin:jnlmpe:2093593
    DOI: 10.1155/2020/2093593
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    Cited by:

    1. Youzhu Li & Rui He & Jinsi Liu & Chongguang Li & Jason Xiong, 2021. "Quantitative Evaluation of China’s Pork Industry Policy: A PMC Index Model Approach," Agriculture, MDPI, vol. 11(2), pages 1-21, January.

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