[Reporter Lee Jin-woo, Korea Farmers and Fishermen Newspaper]

The ‘Year of the Red Horse’ has dawned. With the enterprising spirit of the Red Horse, livestock-related organizations are hoping that the year of Byung-o (丙午) will be a year in which the domestic livestock industry will further develop. Interest in the policy direction and tasks for the livestock industry planned by the Ministry of Agriculture, Food and Rural Affairs this year also seems to be high. Accordingly, this magazine has summarized the major projects and directions that the Livestock Policy Bureau of the Ministry of Agriculture, Food and Rural Affairs plans to pursue this year based on the ‘K-Agricultural Policy Council Performance Report Meeting’ held at Cheongju Osco on December 22 and the ‘Things that will change this year’ released by the Ministry of Agriculture, Food and Rural Affairs.

#Livestock Policy and
Government and local governments are required to establish a ‘5-year plan for livestock industry development’

Shin Woo-sik, Head of Livestock Policy Division

The Livestock Policy Division, which comprehensively establishes livestock policies within the Livestock Bureau, is moving forward with institutional reform by comprehensively revising the current Livestock Act and enacting the tentatively named ‘Livestock Industry Development and Promotion Act.’ The key point is to strengthen the policy linkage between the central and local governments so that the direction of the established livestock policy can be comprehensively and consistently promoted in the field.

The provisions related to the distribution of livestock products included in the Livestock Act have been separated and the ‘Livestock Products Distribution and Livestock Transaction Management and Support Act (hereinafter referred to as the Livestock Products Distribution Act)’ is being enacted. In addition, as the ‘Livestock Industry Transition and Support Act in Accordance with Carbon Neutrality’, a law related to Korean beef, has been enacted, the Ministry of Agriculture, Food and Rural Affairs also needs to reorganize the Livestock Act.

However, more than this, the self-sufficiency rate is decreasing due to the problem of new entrants to the livestock industry, which has become difficult due to various environmental regulations, while the complete market opening according to the FTA signed with major advanced livestock countries and changes in the national diet are increasing the consumption of livestock products. Accordingly, the renovation of old livestock houses or the creation of smart livestock complexes to relocate old livestock houses, which should be promoted accordingly, are also making slow progress. The focus is on improving this situation. This is because, in addition to the central government's policy direction, local governments' execution capabilities have become more important than ever.

Accordingly, the purpose of the comprehensive revision of the current Livestock Act is focused on ensuring that livestock policies proposed by the central government can be effectively applied in the field. △Central government=Establish policy goals △Local government=Establish implementation plans The gist is to comprehensively revise the Livestock Act to have them establish and implement a 5-year plan for the development of the livestock industry respectively.

This is also what the Livestock Subcommittee of the ‘K-Agricultural Policy Council’ launched on August 19th of last year disclosed at the ‘K-Agricultural Policy Council Performance Report’ held at Cheongju Osco on December 22nd after four months of discussion. While other industries often establish statutory plans, the livestock industry has been slow to establish plans, and therefore, going forward, the Ministry of Agriculture, Food and Rural Affairs will clearly present policy directions, and local governments will establish livestock development plans accordingly. The central government will then evaluate and approve the plans of the established local governments. The gist of the performance report was to change the business promotion method to a system whereby the central government will evaluate and approve the plans of the established local governments.

Accordingly, the Livestock Policy Division of the Ministry of Agriculture, Food and Rural Affairs has also comprehensively revised the Livestock Act as its biggest key task this year, tentatively named ‘Livestock Industry Development and The ‘Act on Promotion’ will be enacted, mandating that the central and local governments establish a five-year development plan. Furthermore, the central government’s budget allocation method, which previously considered demand and execution rates, is expected to be reorganized into a system in which local governments first establish plans in accordance with the central government’s policy direction, which the central government then evaluates and approves, and then provides integrated support. It is expected that the integrated support target projects will include projects related to environmental improvement such as △production and distribution strategies △establishment of livestock complexes △lifting of livestock breeding restriction areas, etc., as well as deregulation measures and the use and management of livestock manure.

#Livestock Management and
Focus on preemptive supply and demand adjustment and production cost reduction

Lee Yeon-seop, Head of Livestock Management.

The Livestock Management Department, which is in charge of industrial development and supply and demand for all livestock species raised in Korea, including Korean beef, Korean pork, dairy, poultry, beekeeping, and goats, plans to focus its policies on supply and demand this year, as it is difficult to immediately respond to fluctuations in the supply and demand situation due to the nature of livestock products, and if such a situation occurs, it acts as a crisis factor that hinders industrial development.

In particular, the price difference between refrigerated and frozen meat is large, making it difficult to isolate the market based on frozen storage in case of overproduction, and production volume also fluctuates significantly due to temperature changes such as heat waves or cold waves and the outbreak of diseases. In addition, livestock products have been fully opened to import markets due to FTAs, and external factors such as international livestock product prices and exchange rate fluctuations significantly affect not only the supply and demand of livestock products but also the purchase of feed raw materials. Ultimately, controlling supply and demand and reducing production costs are the core tasks of livestock management and policy implementation.

First, we will establish an institutional foundation for fostering the Korean beef industry and innovating the production system. With the Korean Beef Industry Support Act, which passed the National Assembly last year, set to take effect this year, we are working on enacting lower-level laws, such as enforcement decrees and enforcement rules. With the Korean Beef Industry Support Act scheduled to take effect on July 22, we will complete the work of stipulating in more detail in lower-level laws and regulations the provisions of the Act, including comprehensive plans for the Korean beef industry, field surveys, information system establishment, operation of industry development councils, and restrictions on corporate participation in production.

In the Korean pork sector, a proactive supply and demand management system will be introduced to proactively address pork supply and demand instabilities by utilizing available data, such as the number of sows raised. We plan to conduct research to establish a pork supply and demand adjustment manual by the first half of this year, and thereafter, we plan to regularize the supply and demand adjustment council to share information on the supply and demand situation and discuss response measures. While making the unit price of disaster insurance for broilers realistic, we will support the establishment of a stable production base for ducks by improving breeding facilities, and we will also promote a pilot modernized high-rise livestock farm support project as a measure to strengthen quarantine capabilities and improve productivity by improving livestock facilities vulnerable to diseases such as highly pathogenic avian influenza. The expansion of the livestock area, which was originally planned to be expanded from 0.05㎡ to 0.075㎡ per head starting in September of last year, has been changed to ‘voluntary application by the private sector’ for laying hens. We will continue to provide financial support for expansion and renovation of livestock facilities and manage them to voluntarily implement the expansion of the livestock area.

In the dairy sector, the public and private sectors will cooperate to respond to the expansion of the dairy market and secure consumer markets, while focusing on expanding the consumption of domestic dairy products to strengthen the supply and demand management of raw milk. The government, producers, dairy companies, and other organizations will divide up their roles and make an all-out effort to promote the consumption of domestic dairy products through measures such as expanding consumption by existing consumers, discovering new consumers, and strengthening education and publicity. To this end, we will focus on expanding the consumption of domestic dairy products by utilizing the Dairy Industry Development Working Group and setting and promoting goals for each organization, while identifying and improving problems through performance reviews.

Meanwhile, in the beekeeping sector, we will prepare the ‘2nd Comprehensive Plan for the Promotion and Support of the Beekeeping Industry’ to be implemented from 2027 to 2031, and in the goat sector, we will also review the preparation of a ‘Goat Industry Development Plan’ that will include institutional improvements and expanded support in areas such as improvement, industrialization, quarantine, and distribution.

#Livestock Environment and Resources Division
Focusing on creating a low-carbon livestock processing innovation zone

Kim Jae-kyung, Head of Livestock Environment and Resources Division.

The Livestock Environment and Resources Division, which is in charge of utilizing livestock manure and fostering low-carbon livestock industries as its main tasks, is promoting a pilot project for establishing a regional livestock manure resource circulation plan, creating a low-carbon livestock processing innovation zone, commercializing livestock manure solid fuel power generation, and revitalizing livestock recycling agriculture as its key tasks this year.

What is particularly noteworthy is that each region (local government) will establish a livestock manure resource circulation plan that takes into account the amount of livestock manure generated (resource amount) by livestock type in the region, and the government will support livestock manure-related policy projects in accordance with this plan. The plan is for the central government to support the use of the remaining amount, which can be used as a raw material for biogas, livestock manure solid fuel, etc., based on the actual amount of manure by livestock type generated in the region, the method and quantity of treatment and utilization, and the amount of compost and liquid fertilizer that can be spread based on the crop cultivation status in the region.

A pilot project for a low-carbon livestock innovation zone that processes livestock manure generated in the region using low-carbon methods such as solid fuel or purification will also be promoted. On the 5th, the Ministry of Agriculture, Food and Rural Affairs selected three types of low-carbon livestock innovation zones that reflect the characteristics of the region. Pocheon City will develop it as an ‘industry-linked energy transition innovation zone.’ The city of Gimje, where the project is being promoted as an ‘agricultural-linked resource circulation innovation zone’ type, will establish a system to regularly collect 665 tons of manure generated daily from 33 pig farms, and produce about 16,000 tons of solid livestock manure fuel annually from the cow manure, which will be supplied to facility farms such as floriculture and tomatoes to be used as energy. Any remaining solid fuel will be supplied to the Yeosu Industrial Complex (Southeast Power) in South Jeolla Province. A plan to build a model that links the excess livestock manure generated within the region with external energy demand.

Yeongcheon City is creating an ‘Export-Linked Livestock Innovation Zone’ that connects with overseas markets. The plan is to regularly collect 220 tons of manure generated daily from 15 pig farms, produce compost and liquid fertilizer, and establish a system to export this to overseas markets such as Vietnam. Through this, a structure will be established that can stably process and distribute compost and liquid fertilizer, which were previously restricted in use depending on the domestic spraying season and region, while also verifying an operational model that resolves seasonal and regional constraints in livestock manure management.

In the livestock recycling agriculture sector, a virtuous cycle of supply and demand for compost and liquid fertilizer will be established centered on local agricultural cooperatives, while measures to revitalize livestock recycling agriculture through direct payment support and other measures and promote the production of high-quality compost. In addition, a research project was conducted to introduce a direct payment system for livestock circulation, and a carbon reduction methodology was developed to determine the extent of greenhouse gas reduction effect when using compost and liquid fertilizers compared to chemical fertilizers, thereby reinforcing the logic of livestock circulation agriculture enhancing its public interest function. In addition, it was decided to gradually review the introduction of an ingredient labeling system (N·P·K labeling) for high-quality compost and liquid fertilizers, like chemical fertilizers.

#Livestock Distribution Team
10% reduction in distribution costs for Korean beef, ‘segmentation’ of pork belly

Jeon Ik-seong, Livestock Distribution Team Leader.

In order to secure expertise in livestock product distribution among the tasks handled by the Livestock Policy Division, the Livestock Distribution Team, which was newly formed in December 2022, will promote the supply of inexpensive Korean beef by reducing distribution stages and improving breeding methods in the Korean beef sector this year, and securing representative pork transaction prices and subdividing pork belly specifications in the Korean pork sector as its main policy projects. In addition, the plan is to change the egg standards to make them easier for consumers to understand and promote price competition by activating online transactions.

First, in the Korean beef sector, we will pursue reducing distribution stages and improving breeding methods. The current minimum five stages of Korean beef distribution will be reduced to two or three stages centered around the National Agricultural Cooperative Federation (NACF). In addition, the four major NACF livestock product auction centers will be transformed into regional wholesale and retail logistics hubs to reduce distribution costs by up to 10%. By changing the breeding method from long-term to medium-term, we plan to reduce feed costs, while promoting projects to ensure that the short-term fattening Korean beef produced in this way can be distributed at a low price, thereby discovering new demand sources. The Ministry of Agriculture, Food and Rural Affairs predicts that if the Hanwoo raising period is shortened from the current 32 months to 28 months or less, production costs such as feed costs will decrease by about 10%. They also plan to increase the proportion of Hanwoo slaughtered at 28 months or less from 11.2% in 2023 to 20% by 2030 through a short-term fattening Hanwoo distribution policy.

The problem of representativeness of pork transaction prices will be resolved by opening new wholesale markets and expanding the auction volume through wholesale markets, and the plan is to increase the bargaining power of Korean pork farms by collecting and providing transaction and settlement price information between farms and meat processing companies. The number of companies participating in the pilot program for collecting pig transaction price information will also increase from 5 in 2024 to 15 in 2025, and then to more than 20 this year. In order to minimize the problem of excessively fatty pork belly, which has been a persistent source of controversy, some of the pork grading requirements will be changed, while the names of pork belly cuts will be further refined.

The plan to adjust the pork belly fat ratio in the grading process and to further refine the names of pork belly cuts by fat content was revealed to be the result of discussions at the ‘K-Agricultural Policy Council Performance Report Meeting’ held at Cheongju Osco on December 22.

In order for chicken and egg prices to reflect changes in consumption patterns and eliminate unreasonable trading practices, the chicken consumer price and egg production price survey system will be reorganized. In addition, the egg grading labeling method will be changed from the current ‘Judgement’ to Grade 1+, 1, and 2, and the weight standards will be changed from King, Extra, Large, Medium, and Small to 2XL, XL, L, M, and S.

Meanwhile, online sales and comparison of livestock product prices that can be checked online will be conducted. Services will also be strengthened. First, sales at livestock product-only shopping malls, including ‘Lively,’ an online livestock product sales mall operated by the National Agricultural Cooperative Federation’s Livestock Economy, will be expanded, and participation from Nonghyup Hanaro Mart, regional agricultural and livestock cooperatives, and direct transaction markets will be encouraged, while the use of ‘Yeogigogi,’ a price comparison service app operated by the National Institute of Animal Science, will be increased to provide livestock product price information to consumers.

#Interview/Ahn Yong-deok, Livestock Policy Officer, Ministry of Agriculture, Food and Rural Affairs
“Preparing a bill to improve the livestock distribution structure and making efforts to revitalize livestock circulation agriculture”

Livestock Policy Officer Yong-deok Ahn, met at the Ministry of Agriculture, Food and Rural Affairs. He emphasized, “Let’s all work together, like a galloping horse in the Year of the Horse, to create a livestock industry that is loved by the people, through cooperation between farmers, the industry, the central government, and local governments.”

Shortening the breeding period of Hanwoo to lower prices
Expanding the pig auction market

ICT equipment data analysis solution
Expanding the budget, including establishing a mother fund

Solid fuel made from livestock waste
Need to recognize greenhouse gas reduction performance

“As you know, there were many issues that needed to be resolved last year in relation to laying hens. Regarding the production site transaction price, which was controversial for collusion, we have changed the structure from one in which producers’ groups proposed prices to one in which a consultative body including producers, distributors, and experts is formed to present a reference price. In the future, legal grounds will be established.