This study focuses on the effects of pork market liberalization on the
domestic pig industry.
The hypothesis is that even if the pork price, in a real and nominal term,
has been increased after the liberalization, there must be significant adverse
effects of market opening on the pig industry.
The objectives of this study are to determine the effects of pork market
liberalization on the pork price and to measure the changes of price
variability.
It is analyzed that pork price has been decreased by 13.9% compared
with the baseline projection because of the opening of pork market during the
1997-99 period.
The coefficient of price flexibility of pork was estimated as -0.73 i.e. if
supply of pork increases 1 percent, the price of pork decreases by 0.73 percent.
Price stability has been increased by 30 to 45 percent after the market
opening.
