MANAGEMENT&ECONOMICS

Productivity effects of Hanwoo genetic improvement program

Jae Bong Chang1,*, Sanghyen Chai2

1Department of Food Marketing and Safety, Konkuk University, Seoul 05029, Korea
2Farmer Service Center for FTA Implementation Research Associate, Korea Rural Economic Institute, Naju 58321, Korea

*Corresponding author: jbchang@konkuk.ac.kr

Abstract

A genetic improvement program in Korea was implemented to improve the performance of Hanwoo cattle by generating livestock with genetically desirable economic characteristics. In particular, in response to external changes, such as the expansion of Free Trade Agreement (FTA), the livestock genetic improvement program has increased farm income by improving the productivity and quality of Hanwoo cattle. Using production cost data from Statistics Korea, the total input and output indices of Hanwoo feeding cattle from 2008 – 2021 were estimated and the growth and productivity changes were analyzed. The productivity change measures results were used to estimate the cumulative effects of the Hanwoo genetic improvement program on quality improvement, another purpose of the program, using a finite distributed lag model. The average annual increase in output (market weight) of Hanwoo was 0.9%. However, total input increased by 1.6%, resulting in a 0.6% decline in total factor productivity. In contrast, the Hanwoo genetic improvement program contributed significantly to the production of high quality beef, rather than contributing to improved productivity of the cattle. Hanwoo carcass weight, which is used as a performance indicator for the livestock genetic improvement program, has significantly improved and is projected to increase at a slower rate. The collective findings indicate the need for new performance indicators that can comprehensively indicate the performance of the genetic improvement of Hanwoo.

Keywords

animal genetic improvement program, finite distributed lag model, Hanwoo, total factor productivity

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