The purpose of this paper is to make suggestions for the livestock licensing system through the collection of opinions from livestock households after measuring economic loss caused by the animal diseases and discussing the livestock licensing system ...
The purpose of this paper is to make suggestions for the livestock licensing system through the collection of opinions from livestock households after measuring economic loss caused by the animal diseases and discussing the livestock licensing system which has been established for the purpose of preventing animal diseases in Korea.
1. Summary
According to an analysis of the impact of livestock diseases on market demand through estimation of demand functions including the amount of animal disease related news, livestock diseases had a significant impact on changes in demand. In addition, a negative impact has been observed when measuring the elasticity of the demand for meat using LAIDS model.
According to an analysis of the factors influencing changes in demand, changes from psychological factors related to animal diseases were greater than changes from economic factors. Therefore, the frequency of news related to the animal disease had a significant influence on changes in consumers’ psychological demand. According to the estimation of the social benefit, animal diseases have a greater impact on consumers' surplus than on producers'. Therefore, in animal disease management consumers should be considered as a more important factor. In terms of disease control, the livestock licensing system is essential for the benefit of consumers and the nation as well as to lessen the producers’ burden of disease management.
According to a questionnaire survey on understanding of livestock licensing system, beef cattle, broiler, and egg growers were in favor of the system, while swine and dairy farming households were against the system.
In terms of the reasons for their choice,"needs to develop a systematic approaches in livestock industry" was the highest in households which were for the system, while "too many restrictions" was the highest in the households which were against the system.
In terms of preferred policies associated with the livestock licensing system, beef cattle, swine, and dairy farming households pointed out "obligation to be trained and educated on the livestock licensing system and infectious diseases control", while broiler and egg growers chose "the system to classify farm households by size, and to apply proper measures to prevent animal diseases."
In terms of a method to restrict the number of animals to be farmed, those respondents under 40 years old with higher education background preferred the measures to encourage farmers to give up farming voluntarily by compensation system, while respondents 40 or older with lower education background(high-school graduates or junior college graduates) preferred "restriction on the number of animals to be farmed through the livestock licensing system."
2. Suggestions
Despite reasonable policy purposes and goals, the livestock licensing system might be regarded as a undesirable policies for the operation of livestock households without generating direct profits. Therefore, it is necessary to advertise the positive effects of the system and the incentives which would be given to livestock households when they adopt this system.
In addition, it is also important to get some financial support from the government, because the modernization and automation of production facilities should be upgraded as well. Government grants should be sufficient enough to generate an internal effect.
Under the livestock licensing system, meanwhile, all benefits and restraints should be implemented based on the business point of view. Therefore, developing an education and training programs for the family owned management and employees are necessary.
The livestock licensing system should be able to maintain and include each policy in connection with previous policies. For example, it should cover the Animal Disease Prevention Act, Livestock Night Soil Management Act and Livestock Business Registration Facility Management Standards to enhance the efficiency of the policy. In addition, the government needs to become actively involved to enforce the policy on livestock households which frequently violate the restrictions in order to remove the causes of diseases.