Abstract
In order to provide suggestions for Chinese Government on how to stabilize the price of China’s hog market, which has been witness roller coaster ride of price and brought a huge impact on the pig raising industry and the whole chain of pork industry in recent years, this paper firstly analyzes the underlying rules of China’s hog price fluctuation, and then introduces the international experiences on stabilizing the hog’ price, finally several suggestions on ease of price violent were posed for Chinese government. Our suggestions include: (1) the government should have the sense of risk management when seeking to stabilize hog market price, and the fluctuation risk of hog price with different magnitudes and occurrence probabilities should be managed by farmers, businessman and government using different strategies; (2) Government should take use of the ability of producers and market to mitigate and transfer the price risk.
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