An Analysis of Feasible Cost for Pork Traceability System and Welfare Impact on Pork Consumers and Providers in Korea
분야 농학 > 농경제
저자 ( Yanghoon Song ) , ( Sung Cheol Kim ) , ( Ji Won Park ) , ( Kwan Seok Kim )
발행기관 한국농업경제학회
간행물정보 KOREAN JOURNAL OF AGRICULTURAL ECONOMICS(KJAT) 2010년, 제51권 제3호, 1~21쪽(총21쪽)
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The pork traceability system is expected to be enforced in near future in Korea, along with the beef traceability system that has been enforced since June 2009. To assess the cost feasibility and enforceability of pork traceability system, a welfare analysis is done, estimating the welfare change in consumer/producer surplus. To measure the shift in demand for pork with traceability, a survey result of Willingness-To-Pay for pork traceability is used. To reflect the cost increase in supply, a cost analysis for pork traceability is used. The result indicates that introduction of pork traceability will increase consumers’ welfare by 850 billion KRW and providers’ welfare by 425 billion KRW a year, assuming the unit cost of introducing the system is 183 KRW/500g. However, if the unit cost increases to 530 KRW/500g, the increase in providers’ welfare become zero and the providers will no longer be interested in adopting the system unless there is government support, transferring consumers’ welfare to them. If the cost reaches over 1,093 KW/500g, the decrease in providers’ welfare nullifies the increase in consumers’ welfare (the change in social welfare is zero). In this case, the market will lose incentives to adopt the system because there is not enough welfare increase in consumers’ welfare. If the unit cost increases over 4,062 KRW/500g, not only the change in providers’ welfare is negative but also consumers’ welfare turns into negative. Thus both of the groups will act against introduction of pork traceability system. Using the estimated price transfer equations among farm gate price, wholesale price and retail price and number of businesses and consumers, it is found that consumers gains 4,987 KRW/month/household, pork farms gain 453,494 KRW/month/farm, wholesalers gain 628,675 KRW/month/firm, and retailers gain 79,151 KRW/month/store, assuming the unit cost of 183 KRW/500g.
Pork Traceability, Welfare Analysis, Willingness-To-Pay
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