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http://dx.doi.org/10.11625/KJOA.2021.29.4.507

Effect of Foot-and-Mouth Disease on the Optimal Rearing Period of Hanwoo Steers  

Kim, Se-Hyuk (경북대학교 농업과학기술연구소)
Kim, Tae-Kyun (경북대학교 농업경제학과)
Choi, Se-Hyun (부산대학교 식품자원경제학과)
Publication Information
Korean Journal of Organic Agriculture / v.29, no.4, 2021 , pp. 507-521 More about this Journal
Abstract
The livestock farmers are producing under uncertainties such as Foot-and-Mouth Disease (FMD) and Free Trade Agreement (FTA). The purpose of this study is to strengthen the management capabilities of Hanwoo farmers to prepare them for the uncertainties just mentioned. To this end, this study was conducted to find the optimal rearing period in order to reduce the feed cost, which accounts for the largest portion of the operation cost of Hanwoo. Using the universal lattice model, 41,139 of 289,000 Hanwoo slaughter data from 2010 to 2019 were used for the FMD period and 246,605 heads for the general period. The results show that the maximum cutoff price of Hanwoo steer is 6,394,457 won at the 4th week of 27 months of age in general period, where as 6,242,752 won at the 2nd week of 26 months of age in the FMD period. Therefore, it is judged that it will be helpful for Hanwoo farms to maximize their business profits by slaughtering one month and two weeks earlier in the FMD period than in the general period. In addition, Hanwoo farmers need to break away from the conventional rearing method and improve their management efficiency through a more flexible rearing method.
Keywords
Foot-and-Mouth disease; Hanwoo steers; optimal rearing period; real option model; universal lattice model;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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