한우 개량사업의 경제적 효과 분석

The Economic Effects of the Korean Native Cattle Improvement Program in Korea

This paper aims at estimating the economic effects of the Korean native cattle improvement program implemented by the Government and Agricultural Cooperative Federation in Korea, using the partial equilibrium model. To achieve this goal the change of consumers‘ and producers‘ surplus, the demand and supply, and prices of beef during the period of 2003-2008 have been used. The results show that by implementing the Korean native cattle improvement program the consumers‘ and producers’ surplus increased by 42,672.9 million Won, and 36,147.4 million Won respectively. Consequently, the net social benefit was calculated to be 178,820.3 million Won during these years on the assumption that productivity increased by 5%, and beef price decreased by 2.5% by the improvement program. The demand and supply elasticities were assumed to be -1.466 and 0.70 respectively. Under a different assumptions(15% of productivity increase, and 7.5% of price decrease), the total net social benefit increased to 479,566.8 million Won during 2003-2008. Generally speaking, the Government livestock improvement program is understood to help the farmers only. However, this analysis shows that the Korean native cattle improvement program brought about more increase in consumers‘ surplus than in producers’. Therefore, Government involvement in any livestock improvement programs would be worthwhile to implement.