Analysis of Investment in Equipment Capital for Fattening Cattle Farms

한우 비육우 전업농가 시설투자한계 분석

The objective of this study was to estimate the investment limit in equipment capital by Capital Recovery Method. The data used was collected from 23 Hanwoo(Korean Native Cattle) farms in 1994. The necessary time for herd size expansion was average 5 years from opening(9.7 heads) to 50 heads, 4 years from 50 to 100heads, 3 years from 100 to 150 heads, and 2 years from 150 to 200 heads, respectively. It took 14 years from opening to 200 heads of herd size. The debts for fattening cattle farms were 15.2million won for the size of 50 heads, 37.1 million won for the size of 100 heads and 89.0 million won for the size 200 heads, respectively. Average rates of debt interest were 5.1 % 7.2 and 10.8, correspendingly. As the hear size increased, debt interest rates also increased due to government funds limit. The investment limits in equipment capital perfarm household were 77.7 million won for 50 heads, 135.1 for 100 heads, and 294.3 for 200 heads for 5,500 won per kg liveweight, 70.7 million won for 50 heads, 122.6 for 100 heads and 269.3 for 200 heads for 5,000 won per kg liveweight, 63.6 million won for 50 heads 110.0 for 100 heads and 244.2 for 200 heads for 4,500 won per kg liveweight.