This paper chiefly uses microdata for 2000 and 2015 from the agricultural census to investigate structural changes particularly among beef cattle breeders in South Korean livestock farming since South Korea proactively entered into free trade agreements in the 2000s. Our analysis uncovered the following points.
First, the rankings of beef cattle breeders by the scale of herds being raised have changed. In 2000, the ratio of small-scale beef cattle breeders to total beef cattle breeders was 93.5%, while the percentage of beef cattle raised to the total number of beef cattle was 50.1%. By 2015, the number of small-scale breeders had considerably declined to merely 59.2% of all cattle breeders. In addition, they accounted for only 12.3% of all cattle being bred.
Second, many farmers raising small herds of beef cattle on the side, while cultivating rice, have exited the beef cattle business. Numerous small-scale operations consisted of farmers raising beef cattle in addition to their main business of growing rice and other crops. Between 2000 and 2015, the total number of beef cattle breeders declined by approximately 180,000, while small-scale cattle breeders raising cattle in addition to a main business of rice cultivation declined by approximately 160,000.
Third, areas with high concentrations of large-scale herds are increasing, while areas with high concentrations of small-scale herds are shrinking. Looking at the percentage of small-scale breeders by area, 80% or more of small-sized breeders (i.e., areas with high ratios of small cattle breeders) that constituted 85.7% of all areas in 2000 diminished to 3.3% by 2015.
Between 2000 and 2015, the number of South Korean farmers engaged in cattle-raising operations, particularly with small herds with rice cultivation as a main business, dropped precipitously. The ratio of beef cattle produced on a small scale dropped as well. At the same time, the percentage of large-scale farms steadily increased, along with their share of beef cattle production.
JEL Classification:Q12
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