An Analysis of the Effects of Feedlot Modernization Policy using Efficiency Measurement
2017
Ahn, B.I., Korea University, Seoul, Republic of Korea | Lee, H.D., Korear Maritime Institute, Busan, Republic of Korea | Hwang, E.S., Korea Rural Economic Institute, Naju, Republic of Korea | Kim, M.B., Korea Rural Economic Institute, Naju, Republic of Korea
The purpose of this study is to evaluate the effectiveness of the modernization policy in the feedlot, which is one of the most preferred projects for the livestock farmers. In the DEA analysis used for the efficiency measurement, various input and output variables for each type of livestock are considered. For the cattles, the beneficiary farmers are more efficient than the non-beneficiary farmers when the fertility rate, reproductive rate and mortality rate are included as output variables. In the case of pigs and broilers, the efficiency of the beneficiary farmers is higher than that of the non-recipient farmers, but the difference in the efficiency between these two groups is estimated not to be statistically significant. Although the results of differ from one livestock to another, the modernization project is estimated to have a positive effect on the productivity and the decline of the mortality rate. This suggests that the policy contributed to the efficiency improvement of farmers. The modernization policy has also shown a positive effect on the scale of livestock farming through the increases in the number of herds and feedlot size.
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