Editing Pork cycle (section)

{{short description|Phenomenon of fluctuations of supply and prices in livestock markets}}
[[File:Pork-Cycle.svg|thumb|A schematic diagram of the pork cycle]]

In [[economics]], the term '''pork cycle''', '''hog cycle''', or '''cattle cycle'''<ref name="Rosen1994">{{Citation |last1=Rosen |first1=Sherwin |last2=Murphy |first2=Kevin |last3=Scheinkman |first3=José |year=1994 |title=Cattle cycles |journal=Journal of Political Economy |volume=102 |issue=3 |pages=468–492 |doi=10.1086/261942 |s2cid=219377989 }}
</ref> describes the phenomenon of cyclical fluctuations of [[supply (economics)|supply]] and prices in [[livestock]] markets. It was first observed in 1925 in [[pig]] [[Market (economics)|market]]s in the US by [[Mordecai Ezekiel]] and in Europe in 1927 by the German scholar {{Interlanguage link multi|Arthur Hanau|de}}.<ref>
{{Citation |last=Hanau |first=Arthur |year=1928 |title=Die Prognose der Schweinepreise |journal=Vierteljahreshefte zur Konjunkturforschung |url=http://www.diw.de/documents/dokumentenarchiv/17/43353/viertel_1928.pdf|publisher=Verlag Reimar Hobbing |location=Berlin }}</ref>

While the pork cycle is so named for its genesis in the economic analysis of livestock; the phenomenon has far-spanning implications that capture most goods. In short, the pork cycle runs as thus:

# A demand for pork emerges, and so one or two farmers begin raising pigs. While pig supply is limited, prices are high – at this point of the cycle, pork is a rare good. 
# More farmers realise the value potential and also begin raising pigs. As more and more piggeries come 'online,' the price begins to decrease as supply increases.
# At some point, demand and supply equalise; or supply may outstrip demand. Pork may become a commodity, or consumers may get bored of pork. 
# In turn, farmers turn away from raising pigs, and go back to more valuable crops or livestock. 
# As a result, the pork supply begins to decline. 
# In turn, there are less farmers raising pigs, and so pork goes back to being a high-priced item.
# The cycle resumes again.