Reasons for Unbalance in Raw Milk Supply and Demand, and the Policy Implications for Dairy Industry

Donghyun Sung

Journal of Rural Development/Nongchon-Gyeongje, 2003, vol. 26, issue 4

Abstract: This paper examines the cause of increasing milk powder stocks, analyze the effects of current dairy policy, and suggests the dairy policy to stabilize the milk supply and demand in Korea. One cause of unbalanced milk supply and demand is non-flexible farmgate pricing system not depending on the utilization situations. Also, consumption of fluid milk have stagnated since last decade. Korea Dairy Committee have overextended the milk collecting to one system under the Committee. For alleviating this problem, government have taken actions of slaughtering milking cows, differentiating the pricing system of oversupplied milk, and terminating the dairy farm enterprises. These policies have effects in the short-run, however, this analysis showed that the essential problem of current situation could not be solved in the long-run. As a way of resolving the current oversupply of raw milk, it would be considered that the improvement of raw milk pricing system.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/288196/files/9.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:288196

DOI: 10.22004/ag.econ.288196

Access Statistics for this article

More articles in Journal of Rural Development/Nongchon-Gyeongje from Korea Rural Economic Institute Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().