Development Strategies of The Hanwoo [Korean Native Cattle] Industry

한우산업의 발전전략

The structure of the Hanwoo (Korean Native Cattle) Industry remains very weak and vulnerable to the WTO/IMF system. Considering that the majority of cattle farmers are small sized, and that marketing systems are outdated and inefficient, rapid expansion of lower priced beef imports by WTO system and rapid increasing of production costs by IMF system would lead to the deprivation of a regular source of farm income and threaten the stability of rural life. Accordingly, the Hanwoo industry should be expanded in accordance with progress in the implementation of (1) programs for the structural adjustment and (2) measures to compensate for the loss. Efforts for lowering major production factor costs needs to continue, In order to increase the supply of calves at low cost, the programs of collective cow-calf farms should be expanded, thereby reducing the cost of calf purchase, which constitutes the largest share of Hanwoo production cost. Also, feedlot operations should be encouraged for small herd farms in order to achieve a substantial saving in beef production costs by integrated operations from calf production to cattle fattening. A substantial saving would also be made by collective purchase and distribution of various inputs through the cooperatives' channels. Extension services should be strengthened for cattle farm management, cattle care and feeding, prevention of cattle disease, etc. In order to minimize cash outlays for commercial mixed feeds, utilization of far by-products as feeds should be enhanced and production of forage crops productive of resources, such as land and rural labor, during the farm o(f-season, needs to be encouraged. Also, technological development for enhancing the nutritional value of farm by-products should be encouraged. Measures for successful segregation of the Hanwoo beef market should be implemented, thereby enhancing incentive for quality beef producers and protecting consumers willing to pay higher price for quality beef. For development of the Hanwoo industry, a considerable time frame would be required in order for (1) small livestock farmers to make a successful adjustment by staying in the enterprise and achieving increased price efficiency (2) livestock farmers to acquire know-how for producing quality Hanwoo beef, (3) the ongoing Government policy of enhancing price-quality competitiveness, and for improving the quality Hanwoo beef marketing to take root. (4) consumers to increase their ability to distinguish meat quality, and others.