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Journal of Rural Development

Review on the Raw Milk Pricing System from a Supply-Demand Balance Point of View

2014.12.21 7579
  • Author
    Lee, Changsu
  • Publication Date
    2014.12.21
  • Original

This study reviews the current milk pricing system in the Korean dairy industry focusing on the viewpoint of equilibrating the demand and supply. The current raw milk pricing system greatly depends on the supply side. Hence, the shocks in the dairy industry are not easy to be solved in the current pricing system. This study finds out that the policy options such as a free pricing system determined by a market mechanism or adjusting quotas can be good alternatives to the current system for equilibrating the demands and supply in the Korean dairy market.

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