To improve the current animal epidemic prevention system can not meet the needs of the development of market economy. Taking avian influenza and broiler industry as the research object, this paper discusses the influence of the epidemic situation on the supply and demand of chicken, the epidemic prevention behavior of farmers in major provinces producing broiler and the optimization of prevention and control strategies in a certain eastern province. The local equilibrium model of supply and demand of chicken in China was constructed within the framework of local equilibrium theory, and the annual occurrence times of highly pathogenic avian influenza in chicken flocks were introduced into the equations of chicken output, per capita consumption, import and export volume as the influence coefficient to calculate the loss caused by the epidemic to each link. The study found that from 2012 to 2019, highly pathogenic avian influenza caused a loss of 12,412,800 tons of chicken, of which the total consumption loss was the largest, resulting in economic loss of up to 208.7 billion yuan; Then there is output, then imports, then exports. When each occurrence of highly pathogenic avian influenza, chicken production decreased by 0.028%, per capita chicken consumption decreased by 0.035%, chicken import decreased by 0.031%, and chicken export decreased by 0.024%. Our livestock production in agriculture account for a large, animal epidemic prevention must adapt to the requirement of market economy, changing the concept of development, pay attention to strategy, enhancing the technical levels of epidemic prevention, strengthen information communication, and establish and improve the epidemic prevention and emergency treatment of epidemic emergency rapid response system, promote healthy livestock production security and animal husbandry financial stability.