South Korea: The American dairy system that should be used as a stone of failure

Published Oct 5, 2021

Tridge summary

The Korean dairy industry is facing challenges such as population declines, environmental regulations, market opening, high milk production costs, and shifting dairy product preferences. The article explores the US dairy system, which is focused on a differential pricing system for crude oil and a pooling method to calculate bonds, aiming to address income disparities among farmers. In contrast, Korea has a quota system, which has been criticized for shrinking the production base and is now under discussion for reforms to reduce milk production costs and enhance industry sustainability. There is interest in adopting a system that allows for autonomous milk production and trade, with a focus on sustainable dairy farming and practical policies based on advanced dairy country models.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

-Yoon Seong-sik, Professor Emeritus, Department of Life Science and Technology, Yonsei University The domestic dairy industry is increasingly troubled by population cliffs, various environmental regulations, the opening of the dairy market, high milk production costs, and changes in consumption patterns of dairy products. If the dairy industry is a product of the system, it would be good to take a brief look at the US dairy system. There are a total of 11 large dairy districts across the United States, and 43,000 households produce 95 million tons of milk annually, which is 45 times larger than Korea. With the exception of California (CA), 10 provinces have federal milk distribution laws (FMMOs). The core of this law is the differential pricing system for each use of crude oil and the method of calculating bonds by pooling method. First, let's look at the differential pricing system for each use. U.S. crude oil is divided into four classes according to the processing purpose. ...

Source: Aflnews