• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.3
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• pp.279-290
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• 2021

This study evaluated the economic feasibility of facility farms according to the introduction of the ultra-high density pot cultivation (UHDPC) for mango. The basic model was selected as a representative farmhouse case in the Jeonnam region, and seven scenarios for conventional crops were tested. The economic feasibility of crop switching was analyzed through partial budget analysis (PBA). The PBA analysis results were supplemented by adding a sensitivity analysis and a break-even point (BEP) analysis. As a result of the analyses, it was found that crop conversion was economical because the increase in the profit coefficient was greater than the increase in the loss coefficient due to the introduction of mango for all conventional crops. The economics of introducing mango was more sensitive to changes in gross income than to changes in cost items. The results show the detailed conditions of crop selection according to the conditions and preferences of individual farms by presenting the direction of increase and decrease by budget item and information on the amount of increase or decrease. In particular, the BEP analysis result, which is about half of the farms case, is significant in that it presents the minimum target value according to production and market risks.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.4
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• pp.177-191
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• 2013

6th Industry reduced agricultural income and rural areas, the economic downturn is going to be activated is attracting attention as an alternative. 6th industry means that the integrated or linked, the manufacture and processing of secondary industry based on primary industry, the distribution and service of tertiary industry. Park Geun-hye government to realize the creative economy in agriculture as an alternative to specifically evaluate the 6th industries and suggests various policy alternatives. In addition, to support the development of models and analysis of best practices, including sleep studies are in progress. However, the 6th Industry management body for performing management level, technical level, the leader in comprehensive evaluation of competencies and indicators on the development of an evaluation study is insufficient. In this regard, the present study performed 6th industry management body for the management level, technical level, the leader competency evaluation indicators to develop a comprehensive evaluation by utilizing AHP method was developed indicators. The results achieved in Korea As different countries and the FTA as cheap agricultural imports increased 6th industry revenues associated with the management body is very likely to be worse. The endless competition to survive in the most important of the strategy for each individual project management body to operate on their own, rather than to strengthen internal capacity by strengthening linkages with other industries, products, and services that promote the sale will be. This also is that you need to improve revenue management body. Thus, all 6th industry management body at the location of their efforts to gain the trust of consumers will require, moreover, for each management body to build cooperation between the various measures will be sought. In addition to the smart era rapidly changing needs of customers, depending on the life cycle of products and services are getting faster and the new consumer is getting more and more tend to find new products. Thus, customers and management body 6th industry changes quickly and accurately predict market trends, and also to market new products and services that further efforts would be needed.

• Journal of Korean Society of Forest Science
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• v.101 no.1
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• pp.46-52
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• 2012

The purpose of this study is to give ROI informations about management status and investment returns to someone who will newly cultivate lycium chinese miller or expand area of its cultivation. In this study, IRR, B/C Ratio and NPV is used for ROI analysis. We basically surveyed fifty two among Lycium Chinese Miller cultivation farmhouses in chief producing districts Chungnam Chungyang, Jeonnam Jindo in Korea from May until September in 2009. Hence, this study surveyed these farmers about production cost, management cost, input labors and materials, land price and etc. by working process to calculate production and operation cost. As the result of farm survey, average selling price of Lycium Chinese Miller is 15,000 won per kg at locals for five years. However, when 3% discount rate is applied, the result of the analysis is B/C Ratios 0.89, which shows unprofitable. Therefore, it is a possible baseline that price of Lycium Chinese Miller is at least 16,800 won per kg with 3.00% IRR and B/C Ratio is 1.00. It could be profitable with about 21.75% income ratio when price of Lycium Chinese Miller is 16,800 won per kg.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.1
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• pp.216-222
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• 2020

A comparative analysis of farm incomes was performed from the new composition system of crops, such as feed crops, including soybeans, Italian ryegrass, soybean-potatoes, and soybean-barley planted in rice fields. Through this analysis, the suggested implications were derived, and the technological solutions were determined. The profitability of the composition of soybean-Italian ryegrass showed that the soybeans yield was 325kg/10a, and the sale price was ￦3,962/kg, leading to a gross revenue of ￦1,288,000/10a. The yield of Italian ryegrass was 1,584kg/10a with a sale price of ￦125/kg, showing a gross revenue of ￦198,000/10a. The net income of soybeans was ￦284,000/10a, which means a net income rate of 22.1%, whereas the net income of Italian ryegrass was -￦30,000/10a. The composition of soybeans-potatoes and soybeans-barley showed a gross revenue of ￦930,000/10a and ￦375,000/10a, respectively. The crop composition types have been developed for the Income Type, Production Type of Forage, Improvement Type of Food Self-Sufficiency, and Corresponding Type to Climate Change. On the other hand, regional types have not been developed sufficiently. In addition, various selections of alternative crops and the establishment of crop composition congruent to the specific regions should be developed systematically in terms of the production technology. Therefore, it is necessary to develop the technological establishment of the crop composition through continuous related studies with the mid-to-long term objectives of land utilization and grain self-sufficiency rates.

• Korean Journal of Agricultural and Forest Meteorology
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• v.25 no.3
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• pp.236-244
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• 2023

The purpose of this study was to examine the economic feasibility of providing services according to the nationwide expansion of early warning services. The net present value method, one of the cost-benefit analysis methods, was applied to the analysis. As a benefit item that constituted the net present value, the damage reduction amount using crop insurance data and the willingness to pay for the use of early warning services were used. The cost items included system construction and maintenance costs, and text transmission costs. As a result of the analysis, it was found that the nationwide expansion of early warning services had economic feasibility, and its economic effect varied depending on the level of text message use (10 % to 40 %, 10 %p interval) of participating farmers. In the future, the economic effect of early warning services is expected to increase further due to the increase in the number of farmers participating in early warning services and the increase in crop damage caused by climate change. It is necessary to further enhance the economic effect of early warning services by actively utilizing information delivery means through apps or the web as well as text messages.

• Proceedings of the Korean Society of Near Infrared Spectroscopy Conference
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• 2001.06a
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• pp.1621-1621
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• 2001

The quality of sugarcane grown on the NE Australian tropical coast ($16^{\circ}$15'- $18^{\circ}$15' S Lat.) has declined markedly in the past seven years. This has been linked to dilution of mill-supply cane with increasing levels of non mature-stalk material consisting of leaves and sucker culms. The prime research objective was to examine the transition from the pre-harvest, in-field crop to harvested material sent for processing, in terms of quality and crop fraction proportions. A secondary objective was to quantify the effects of preharvest-season crop habit and culm condition on crop quality. Ten quadrat samples from each of 54 random crop sites (17 in 1999 and 37 in 2000), covering a wide range of variables (cultivar, crop class, and edaphic, topographic, climatic, and temporal factors) were collected immediately before harvest. Samples were partitioned into four fractions:- sound and unsound mature stalks (culms), sucker culms, and extraneous matter (leaves). Material harvested from each site was sampled and partitioned into four fractions:- sound and unsound billets (culm pieces), culm-spindle pieces, and leaf. In 2000, before harvest, 14 additional sites were sampled monthly, on three occasions, from March - June. Erect and non-erect culms were divided into sound and unsound classes. All samples were disintegrated and presented to a remote reflectance module of a scanning spectrophotometer using the BSES large cassette module. Near infra-red spectroscopic (NIS) analyses were developed for the rapid determination of quality components (Brix, commercial cane sugar (CCS), fibre, moisture, and polariscope reading). Calibrations for three material groups (culm (n = 639), non-culm (n = 496), and combined) were developed for all components using the 1999 data set. Two sub-sets (n = 178, and 190) of about 10% of the preharvest-season and harvest populations scanned in 2000 also were subjected to full routine laboratory analyses. The 1999 combined calibrations were excellent, but the culm calibrations produced consistently lower standard errors. Non-culm calibrations were marginally better than the combined for only CCS and pol. reading. Analysis of the 2000 culm data with calibrations using all 1999 and 2000 culm data resulted in better predictions relative to the 1999 culm calibrations. This also was true for the combined calibrations. Assessment of quality components in pre- and post-harvest sugarcane using NIS calibrations was more cost effective than using routine laboratory techniques. Outcomes from this NIS-facilitated research will have important economic consequences for the Australian sugarcane industry. Potential CCS present in mature culms is being discounted by dilution with leaves and sucker culms, threatening farm viability. The results question the efficacy of current harvesting technology. The CCS of harvested cane is improved only marginally over that of the in-field crop. Current harvesting technology requires either supplementary, innovative pre-mill processing or a design revolution to improve mill-supply cane quality, and therefore whole of industry economics. NIS-facilitated analyses, before the harvest season, highlighted the benefits of growing erect, sound crops. Loss of CCS then, can be minimized only by a combination of crop improvement and agronomic solutions, applied as part of sound on-farm management.

• Korean Journal of Agricultural Science
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• v.39 no.2
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• pp.227-242
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• 2012

Accurate estimation of milk production cost is very important for dairy farmers in establishing strategies for business management (e.g. planning a program for milk production, deciding the size of business and investment, determining the milk price for sale). Since the estimated cost of milk production is used as an important index to determine the basal price of milk in Korea, there has been much interest and debate on the method used to estimate milk production cost among the stakeholder. This study was thus carried out to identify problems in the current methodology for estimating cost of milk production, and to find a better way to improve it. We propose several alternatives and better ways to improve the current method for estimating cost of milk production. Estimation of the income and cost per head should be based on the number of cattle converted to grown cows. Cost estimation per liter of milk should be made for both whole milk and 3.4% milk fat corrected milk. The value of purchased cows and raised replacement heifers should be the same as their market value. The productive life span of cows should be less 4 years, and the terminal or salvage value of cows needs to be 30 to 40% less than her initial value. When calculating depreciation of cows over the productive life span, however, the salvage value should be 0 or 1 Korean won. On calculating labor costs, the farm labor wage corresponding to the average wage of nonfarm industrial workers should be assumed. Beside of these, better estimation procedures for other items are also given. The proposed methods from this study should improve the accuracy of estimation of milk production cost and help to achieve consensus among the stakeholder.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.1
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• pp.131-137
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• 2021

This study estimated acreage response functions for greenhouse paprika, greenhouse strawberry, open-land garlic, and open-land spinach by using Gyeongsangnamdo agricultural income data. The results show that the cultivation area for greenhouse paprika increased because the agricultural management costs decreased, and the risk of price volatility was relatively low. On the other hand, the cultivation area for greenhouse strawberries decreased due to increasing agricultural management costs and the greater risk of price volatility. In the case of open-land garlic and spinach, the cultivation area remained stagnant due to the greater risk of price volatility, despite increasing agricultural revenue. We derived several policy implications from our results. The risk of price volatility in agricultural products is greater for crops grown on land rather than crops grown in greenhouses. Therefore, the local government needs to adopt the "agricultural revenue guarantee insurance" in preference to crops grown on land rather than crops grown in greenhouses. On the other hand, in the case of greenhouse crops, agricultural management costs are very high. Thus, local government should focus on replacing old facilities and supplying smart-farm facilities that reduce agricultural management costs such as heating costs.

• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.761-782
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• 2006

Public concern about potential environmental risks of agricultural business for the livestock production and processing is increasing. However, due to differences in general industry structural characteristics, such as farm production and waste management practices, the effect of environmental policies may differ from species to species as well as across size categories. I hypothesize that additionally the Hog subsector may be more responsive to (or a greater driver of) a changing environmental policy environment than the beef cattle subsector. As a result, I expect to see more evidence of sensitivity in the environmental policy milieu from hog-operation stocking and location decisions than with the beef cattle industry. The written stringency may not effective, instead state's willingness to enforce has directed and regulated. However, in presence of rapid structural change, just like hog, industry location is affected by state regulation. The environmental compliance cost may be a small portion of industry total cost and fixed cost of beef industry makes for them to take into account environmental compliance for their decision location making. The special movements of flog industry have chance to minimize the cost of the operation and they willing to locate less stringent place.

• Journal of agriculture & life science
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• v.52 no.6
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• pp.155-162
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• 2018

This study attempts to analyze the consumers' preference on Korean Red Ginseng Tonic, which is an essential product to revitalize Korean ginseng industry, using choice experiment method. The attributes used in the choice experiment were the ginseng age, good agricultural products(GAP), sugar, and price. A total of 1,796 experiments were collected and the value of each preferred attributes was estimated using a multinomial logistic model. The result shows that the products made from six-year-old and GAP(Good Agriculture Practice) approved Korean ginseng with less sugar were preferred. These estimated monetary values of marginal willingness to pay were about 94,000 KRW, 89,000 KRW, 5,000 KRW, respectively. Thus, the efforts to introduce and advertize GAP approved ginseng while developing new products with preferred attributes by general publics are necessary in the short run. In addition, we may need to consider developing the way to promote products using 4- and 5-year-old ginsengs, which are relatively underestimated in their health effectiveness but highly productive for farmers in the long run.