The Effect of Hog Futures in Stabilizing Hog Production
China’s large-scale hog farmers are playing an increasingly important role in promoting the stable development of the hog industry. Taking large-scale hog enterprises as samples, based on hog sales data from January 2019 to July 2022, this paper adopts a two-way fixed-effects model to test the impac...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-02-01
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| Series: | Agriculture |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2077-0472/14/3/335 |
| _version_ | 1797242477634125824 |
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| author | Chunlei Li Gangyi Wang Yuzhuo Shen Anani Amètépé Nathanaël Beauclair |
| author_facet | Chunlei Li Gangyi Wang Yuzhuo Shen Anani Amètépé Nathanaël Beauclair |
| author_sort | Chunlei Li |
| collection | DOAJ |
| description | China’s large-scale hog farmers are playing an increasingly important role in promoting the stable development of the hog industry. Taking large-scale hog enterprises as samples, based on hog sales data from January 2019 to July 2022, this paper adopts a two-way fixed-effects model to test the impact, mechanism, and heterogeneity of hog futures on the production stability of large-scale hog farmers. The study found that hog futures help promote stable production of large-scale farmers. This finding still holds after a series of robustness tests. The mechanism analysis found that, first, hog futures help large-scale farmers expand their risk management factor inputs. Second, hog futures help reduce the impact of hog price risk on production. Finally, hog futures help stabilize farmers’ production expectations. The moderating effects analysis found that the stabilizing effect of hog futures will enhance as farmers’ share of hog farming operations increases. Heterogeneity analysis found that when hog prices fluctuate negatively, hog futures help promote the stable production of large-scale farmers. When hog prices fluctuate positively, the production stabilization effect of hog futures is not obvious. Therefore, hog enterprises should be encouraged to participate in hog futures hedging transactions to promote stable hog production. |
| first_indexed | 2024-04-24T18:39:51Z |
| format | Article |
| id | doaj.art-6726f748fbf743a0be9f7fe9b4f7ebbb |
| institution | Directory Open Access Journal |
| issn | 2077-0472 |
| language | English |
| last_indexed | 2024-04-24T18:39:51Z |
| publishDate | 2024-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Agriculture |
| spelling | doaj.art-6726f748fbf743a0be9f7fe9b4f7ebbb2024-03-27T13:15:47ZengMDPI AGAgriculture2077-04722024-02-0114333510.3390/agriculture14030335The Effect of Hog Futures in Stabilizing Hog ProductionChunlei Li0Gangyi Wang1Yuzhuo Shen2Anani Amètépé Nathanaël Beauclair3College of Economics and Management, Northeast Agricultural University, No. 600 Changjiang Road, Harbin 150030, ChinaCollege of Economics and Management, Northeast Agricultural University, No. 600 Changjiang Road, Harbin 150030, ChinaInstitute of Science and Technology Information, China Academy of Tropical Agricultural Sciences, No. 4 Xueyuan Road, Haikou 571101, ChinaCollege of Economics and Management, Northeast Agricultural University, No. 600 Changjiang Road, Harbin 150030, ChinaChina’s large-scale hog farmers are playing an increasingly important role in promoting the stable development of the hog industry. Taking large-scale hog enterprises as samples, based on hog sales data from January 2019 to July 2022, this paper adopts a two-way fixed-effects model to test the impact, mechanism, and heterogeneity of hog futures on the production stability of large-scale hog farmers. The study found that hog futures help promote stable production of large-scale farmers. This finding still holds after a series of robustness tests. The mechanism analysis found that, first, hog futures help large-scale farmers expand their risk management factor inputs. Second, hog futures help reduce the impact of hog price risk on production. Finally, hog futures help stabilize farmers’ production expectations. The moderating effects analysis found that the stabilizing effect of hog futures will enhance as farmers’ share of hog farming operations increases. Heterogeneity analysis found that when hog prices fluctuate negatively, hog futures help promote the stable production of large-scale farmers. When hog prices fluctuate positively, the production stabilization effect of hog futures is not obvious. Therefore, hog enterprises should be encouraged to participate in hog futures hedging transactions to promote stable hog production.https://www.mdpi.com/2077-0472/14/3/335hog futuresstable productionexpand productionrisk hedgingstable expectations |
| spellingShingle | Chunlei Li Gangyi Wang Yuzhuo Shen Anani Amètépé Nathanaël Beauclair The Effect of Hog Futures in Stabilizing Hog Production Agriculture hog futures stable production expand production risk hedging stable expectations |
| title | The Effect of Hog Futures in Stabilizing Hog Production |
| title_full | The Effect of Hog Futures in Stabilizing Hog Production |
| title_fullStr | The Effect of Hog Futures in Stabilizing Hog Production |
| title_full_unstemmed | The Effect of Hog Futures in Stabilizing Hog Production |
| title_short | The Effect of Hog Futures in Stabilizing Hog Production |
| title_sort | effect of hog futures in stabilizing hog production |
| topic | hog futures stable production expand production risk hedging stable expectations |
| url | https://www.mdpi.com/2077-0472/14/3/335 |
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