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By Zhang Yunhua, Research Department of Rural Economy, DRC & Zhang Chen, Chinese Academy of Social Sciences

Research Report, No.100, 2021 (Total 6165) 2021-4-26

Abstract: This paper analyzes five factors influencing the price of agricultural products, including production costs, supply and demand performance, monetary supply, psychological expectations, and energy prices, all of which are narrowed down to cost, supply and demand, monetary, psychological, and relevant factors affecting agricultural product prices. Since 2020, the general increase in agricultural product prices is mainly due to rising production costs, tight supply and demand of some agricultural products, inflationary pressure caused by over-issuance of currency, people’s fear about the shortage of agricultural products amid COVID-19 epidemic, and the rising of energy prices. We need to establish and refine the long-term stabilization mechanism of the price of agricultural products, stabilize the cost of agricultural products and improve the efficiency of agricultural production. We need to ensure the supply of agricultural products in a balanced manner, and pay attention to the problems of regional tight balance between supply and demand and poor circulation. We need to stabilize currency issuance and take a proper stance toward the reasonable price increases of agricultural products due to inflation. We need to guide public expectations in a scientific way and standardize consumer market behavior. We need to monitor and assess the influence of energy prices on agricultural product prices, and flexibly regulate biomass energy production.

Keywords: agricultural product prices, influencing factors, stabilization mechanism