FTA; Milk Production Cost; Concentrate; Total Mixed Ration; Heifer; Embryo Transfer
농업경영.정책연구, v.38, no.2, pp.281 - 293
Korea have settled FTA’s with America and EU the two major dairy exporters. Negotiations for FTA’s with other main dairy exporting countries such as Australia, New Zealand and Canada are under way. In addition, FTA’s with both Japan and China the two neighbouring countries with whom trade of fresh milk is feasible seems to be settled in the near future. This implies that even the domestic fluid milk market can not be guaranteed under globalization. Furthermore, milk production cost has gone up due to the recent sharp rise of grain price and exchange rate. So domestic dairy farms are forced to cut down production cost to compete with gradually increasing low priced imported dairy products. This study investigated ways of reducing production cost and increasing returns using monthly survey data of dairy farm management collected by a processing cooperative. Results of the data analysis showed that it’s possible to cut down milk production cost by just substituting concentrate with TMR(total mixed ration). In addition, keeping proper herd size of heifer and producing Hanwoo(the Korean native cattle) calves by means of embryo transfer using the surplus dairy cow turned out to be an effective way of increasing returns of dairy farm management.