A Study on Improvement of Raw Milk Price Sliding System Reflecting Supply and Demand
2017
Kim, H.J., Korea Rural Economic Institute, Naju, Republic of Korea | Ji, I.B., Korea Rural Economic Institute, Naju, Republic of Korea | Seo, G.C., Korea Rural Economic Institute, Naju, Republic of Korea | Jeong, S.M., Korea Rural Economic Institute, Naju, Republic of Korea
This study proposes an improved raw milk price sliding system by introducing new pricing component, which is seasonal supply-demand difference factor, in addition to current pricing components, which are production cost and inflation adjustment factors. The improved raw milk sliding price system is designed to lower the raw milk price when raw milk is oversupplied while to raise it when raw milk is undersupplied. To calculate the adjusted price, we set up every criteria volume of milk powder stock, raw milk production, and fresh milk consumption using the data 2006-2015. As a result, the range of the supplydemand adjusted price was proposed from 106.02 to 169.10 won/ℓ. This accounts for about 11.4~18.3% of the most recent raw milk price of 922 won/ℓ. The range of seasonal differential pricing system is also proposed from 18.32 to 29.22 won/ℓ.
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