industry and related industries. The experiment choice models were used to estimate consumers' preference for animal feeds and the willingness to pay for each property.
We held a policy debate and a seminar to identify the problems of the companion animal breeding and related industries and to find measures to develop the industries, and held 13 meetings with industry experts.
Research Results and Implications
It is estimated that 5.74 million households, or 29.4% of the nation's 19.52 million households in 2017, have 6.32 million dogs and 2.43 million cats. Therefore, it is believed that the number of companion animals in Korea will reach about 8.74 million.
The number of people raising companion animals is estimated at about 14.81 million.
The size of the animal-related industry in 2014 is 1,568.4 billion won, which is growing by an average of 14.5% per year. The number of companion animals will steadily increase to reach 13.2 million in 2027. The size of the animal-related industry is expected to grow from 2.3 trillion won in 2017 to more than 6 trillion won in 2027.
Basic statistics on the production, distribution and breeding of companion animals are insufficient, and companion animal abuse, loss, and abandonment problems continue to occur. Since the animal which is less than 2 months old is sold to the market, the mortality rate is high, resulting in consumer damage.
Despite the compulsory registration of companion animals for the prevention of loss, abandonment and insurance expansion, the number of companion animals registered by 2016 is only 1.07 million, accounting for only 19.8% of 5.4 million. In addition, accidents of dogs attacking people are also occurring continuously.
Basic statistics on the feed industry are insufficient, and there is no feed law reflecting characteristics of companion animal feeds. Domestic feeds are not competitive due to the lack of a domestic high-quality meat supply system. There is a huge price difference of medical care depending on animal hospitals. Also there is a problem of medical expenses due to excessive medical treatment. Demand for animal care is rising rapidly, but it is difficult to meet the growing demand for animal healthcare services due
to lack of an animal nursing care system and experts.
The companion animals insurance penetration rate is only 0.16% due to the weak domestic pet insurance market, and the companion animals insurance market is sluggish due to the high loss ratio of insurance companies. This increases the economic burden of consumers.
As the companion animal industry grows rapidly, many related certificates issued by private organizations are being created. However, there is a lack of systematic management. Dog shows are not active enough and there is a great lack of experts in animal care. Facilities and manpower management standards are insufficient for new industries such as the companion animal care service industry, dog cafes, dog hotels, dog kindergartens.
This study concluded that the companion animal industry could develop only if a mature companion culture is established and a healthy companion animal industry is fostered. Therefore, this study set these two as the core objectives for the development of the industry.
In order to establish a mature companion culture, animal welfare should be expanded in the production, sale, and breeding of companion animals. Also, the consciousness of the citizens raising companion animals should be mature.
Also, to cultivate the animal-related industry, it is necessary to establish a system in which the government can protect and nurture the industry by enacting relevant laws.
In addition, it is necessary to establish the management system to improve the situation and problems of the companion animal industry.
Researchers: Kim Jongjin, Yoon Jongyeol, Kim Jiyeon and Park Jiwon E-mail Address: jkim@krei.re.kr
Korea's assorted feed industry achieved a rapid quantitative growth until the early 1990s with the development of the domestic livestock industry. Since the late 1990s, however, the industrial structure has changed as the growth trend has slowed down due to the opening of the market for livestock products and a decrease in the increase rate of meat consumption. Also, since the mid-2000s, the prices of imported grain, major feed ingredients, have soared and price volatility has risen, which has led to the burden on assorted feed companies. In addition, as large-scale feed companies appeared with mergers and acquisitions among firms, the assorted feed market has been switched from the one centered on the feed purchased en bloc and sold to farmers by the National Agricultural Cooperative Federation (NACF feed) to a system where private feed companies compete with NACF feed. With intensifying competition with imported livestock products, the competitiveness of assorted feed, which accounts for a high percentage of production costs, is directly related to the competitiveness of domestic livestock products. Accordingly, livestock farms' demand for the stable supply of high-quality assorted feed has increased. This study aims to analyze changes in the internal and external environments of the assorted feed industry, and the structure and performance of the assorted feed market, and seek ways to enhance the competitiveness of the industry.
According to the analysis result, the domestic assorted feed market shows relatively