Research Reports
A Study on Improving Meat Marketing System for a stability of the Consumer Price
-
AuthorHuh, Duk
-
Publication Date2011.11.30
-
Original
This research analyzes direct and indirect effects on the consumer price from livestock and meat related policies, and seeks effective policy options. To meet this end, the research conducted expert survey to rank relative importance of policies which aim to reduce meat price volatility and price markdown. The survey result shows that integration by cooperative was mostly selected policy option for all objectives. Organizing producers and scale improvement was the second best choice from the survey. In a goal of reducing price volatility, integration by private enterprise, modernizing farm facilities, activating cut-meat distribution were selected as the best policy options. In a goal of price markdown, expanding direct dealing, encouraging vertical and horizontal integration, activating cut-meat distribution were selected as the best policy options.
This research performed another expert survey to evaluate efficiency, effectiveness, enforceability, and acceptability of policy options for reducing meat price volatility and improving marketing system. Integration by cooperative was mostly selected in terms of effectiveness and efficiency. Meat traceability was selected as a best policy option for government’s enforceability. Modernizing farm facilities with developing technologies for improving productivity was the best suit for the farm acceptability. It is interesting that integration by cooperative policy also received high rank in enforceability and acceptability categorizes.
From the survey results, this study found that it is necessary to integrate marketing stages to facilitate stakeholders’ prompt decision making in a situation of current complex meat marketing system with many business participants. To do so, several policy directions are recommended such as, 1) improving productivity and marketing power of producers by integrating, 2) achieving market efficiency and economy of scales by merging slaughter, deboning and processing, shipping stages. 3) securing consumers and improving customer satisfaction.
To improve beef and pork domestic marketing system, this study suggests several policy options for each different marketing stage. In the production stage, policies such as 1) integration and local brands has to be linked to coordinate producers. 2) Solving animal feed price instability to mitigate input price pressure. Also it is important to adopt flexible “calf production stabilization policy” for a future. 3) Farm modernizing and production technology improvement is urged to reduce seasonal effect of meat and livestock prices. In the wholesale stage, it is necessary to 1) facilitate regional lodgment slaughtering and processing center for effective boxed meat distribution. 2) Revitalize the pork futures market and expand to beef industry. In the retail stage, several approaches are needed as below. 1) Markdown favored meat part price by encouraging low-fat meat consumption, 2) introducing government certified high-quality meat distribution channel, 3) developing various meat direct dealing systems, 4) enforcing meat quality certification labeling policy to restaurant.
Researchers: Huh, Duk; Woo, Byung-Joon, Kim, Won-Tae
E-mail address: huhduk@krei.re.kr
- Next
- A Study on Establishing Rice Replacing Forage Crops Using-System
- Prev
- An Analysis of Beef and Pork Distribution and Improvement Tasks