Acta Agriculturae Zhejiangensis ›› 2023, Vol. 35 ›› Issue (5): 1195-1210.DOI: 10.3969/j.issn.1004-1524.2023.05.24

• Agricultural Economy and Development • Previous Articles     Next Articles

How does livestock and poultry restricted zone policy affect stability of China’s hog market?

LIU Wei(), TAO Jianping()   

  1. Hubei Rural Development Research Center, College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
  • Received:2022-06-05 Online:2023-05-25 Published:2023-06-01

Abstract:

Based on the panel data of 30 provinces (autonomous regions, municipalities) in China (excluding of Hongkong, Macao, Taiwan and Tibet) from 2006 to 2020, the livestock and poultry restricted zone policy (RZP) was selected as a quasi-natural experiment, and a generalized difference-in-difference model and a moderated mediation model were adopted to evaluate the impact of this policy on the stability of hog market and to reveal its path. It was found that RZP significantly exacerbated hog price fluctuation, and the tightening of environmental protection restrictions had a negative impact on the stability of hog market. The policy worked through the moderated mediation effects path. Specifically, under the pressure of environmental protection, RZP forced the improvement of the scale breeding level, which could offset the direct aggravation effect of RZP on hog price fluctuation. However, in those regions with more severe swine epidemics, the stabilization effect of scale breeding on price fluctuation was weakened, and the direction of the effect was even reversed. As a result, RZP intensified the hog price fluctuation through its own direct effect and the conditional indirect effect of scale breeding. Further empirical test showed that the stabilization effect of hog price fluctuation of scale farming with different scales had different responses to pig epidemic. Small-scale farming and large-scale farming would aggravate hog price fluctuation due to the swine epidemics, while medium-scale farming was not significantly affected. The callback of environmental protection measures in response to the outbreak of African swine fever had boosted hog supply and had flattened price fluctuations during the epidemic period. In order to ensure the healthy development of hog market, the government should implement flexible environmental protection measures, strengthen environmental supervision, increase efforts to support small and medium-scale farming, and improve the epidemic prevention and control mechanism.

Key words: market stability, livestock and poultry restricted zone policy, scale breeding, pig epidemics, moderated mediation effect model

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