Assessing the effects of changes in Hanwoo breeding cow population on equilibrium using Multimarket Partial Equilibrium model

Abstract

A vertically integrated structure was considered in developing a Multimarket Partial Equilibrium Model for the Hanwoo industry. In order to eliminate the supply effect on the final demand for Hanwoo beef, Hanwoo beef demand index was constructed and integrated into the model. Using simulations that altered the number of breeding cows, the model was utilized to examine the ripple effect on equilibrium quantity and price, which are crucial in regulating the supply and demand of Korean beef. The study found that altering the number of breeding cows affected the feeder and fed cattle markets depending on the timing of the alteration to the breeding cow population. Fattening breeding cows is a significant tool that directly impacts market equilibrium but caution is needed when implementing this policy as it cannot be considered a fundamental measure for stabilizing the Hanwoo supply.