The pig cycle is a theory from 1928 which describes the adjustment mechanism of supply and demand that are not in balance and where capacity decisions have a delayed effect.

In times of low pork prices, farmers did not intend to raise many sows with piglets. As a result, piglet production fell sharply, and after 11 months, there is a smaller number of pigs. Due to the decreased production, prices rose very quickly. At these good prices, the farmers expanded the number of pigs consid....