Study on the Transmission Mechanism of Price of Cattle and Sheep in

Abstract. In this paper, the vector auto regression mode (VAR) is used; Johansen test is conducted among independent variables which sheep and cattle industry chain involved. China's price transmission mechanism is analyzed of. Studies have shown that the presence of cattle and sheep industry chain have long-term equilibrium. Prices of Feed and raw materials of feed for cattle and sheep fluctuations play a decisive role. But cattle and sheep prices fluctuating in recent years, in the long run, equilibrium price exists and cattle sheep industry chain have limited ability to repair itself, the government should improve the existing price protection mechanism to protect cattle sheep industry