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http://dx.doi.org/10.5536/KJPS.2017.44.1.51

A Study on Effective Planning Method of the Check-off Fund Program for Egg  

Kim, Dong Jin (Korea Poultry Association)
Hong, Sung Kyu (Department of International Trade and Culture, Konkuk University)
Kim, Yoon doo (Department of International Trade and Culture, Konkuk University)
Publication Information
Korean Journal of Poultry Science / v.44, no.1, 2017 , pp. 51-57 More about this Journal
Abstract
Subsequent to the introduction of the "Laws on Consumption Promotion of Livestock Products" in 2002, a mandatory check-off system for the egg industry was introduced in June 2009. Unlike other livestock products, the check-off on eggs is financed not from the sale of the egg-the end product-but from the spent hen. Variables such as the falling price of spent hens lead to a low financing rate; The present farm allotment rate of 14%, introduced in 2015, is much higher than the 0.2% to 0.3% check-off rate in other types of business, thus placing a huge burden on farms. When check-off is financed from the egg, it is expected that 6.5 billion won will be raised using a rate of 0.3% of sale proceeds, Therefore, it is urgent for the government to establish infrastructure to enable producers and merchants to do business through Grade & Packing centers. This can be achieved by the staged construction of local Grade & Packing centers. Check-off should continue to be financed from the present spent hen until this infrastructure is established, and an institutional strategy should be provided by the government to raise the financing rate accurately and transparently using statistical treatment of supply data for spent hens as a short-term alternative.
Keywords
spent hen; grade & packing center; egg board; egg check off;
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