The impacts of animal disease crises on the Korean meat market

Authors

  • Moonsoo Park,

    1. Associate Research Fellow, Korea Institute for Industrial Economics and Trade, 66 Koegiro, Dongdaemun-gu, Seoul 130-742, Korea
    Search for more papers by this author
  • Yanhong H. Jin,

    Corresponding author
    1. Department of Agricultural Economics, Texas A&M University, College Station, TX 77845-2124, USA
      *Corresponding author. Tel.: +1 (979)-458-1355; fax: +1 (979)-862-8679. E-mail address:yjin@ag.tamu.edu (Y. H. Jin).
    Search for more papers by this author
  • David A. Bessler

    1. Department of Agricultural Economics, Texas A&M University, College Station, TX 77845-2124, USA
    Search for more papers by this author

*Corresponding author. Tel.: +1 (979)-458-1355; fax: +1 (979)-862-8679. E-mail address:yjin@ag.tamu.edu (Y. H. Jin).

Abstract

Employing the error correction method and historical decomposition with direct acyclic graphs, we quantify the impacts of domestic and overseas animal disease crises on the Korean meat market. We have the following findings: (a) the market partially recovered 16 months after the domestic foot-and-mouth outbreak (FMD) in 2000, and 13 months after the domestic avian influenza (AI) incidents and the U.S. bovine spongiform encephalopathy (BSE) discovery in 2003; (b) animal disease outbreaks had differentiated impacts by disease type and at different levels of meat supply chain. Retail price margin increased relative to the farm and wholesale levels; and (c) disease outbreaks caused changes of dynamic interdependence between prices by meat type at different levels of meat supply chain.

Ancillary