Abstract

This paper analyzes the impact of rising international grain prices on the domestic pig industry and pig farmers. Recently, due to the rise in international grain prices, the increase in feed costs, a major factor in the production costs of domestic pig farms, has pressured the management situation of farmers. Higher production costs due to higher grain prices will reduce the supply of pork, thereby increasing market prices and decreasing market transactions. Accordingly, consumer welfare and producer welfare also decrease. Furthermore, the increase in production costs has a different effect on the degree of productivity of farmers. In particular, the lower the productivity of farmers, the greater the burden of increasing production costs. In this paper, we also analyzed how the effect of increasing production costs varies depending on the degree of productivity of farmers.

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