DEMAND FOR MEAT AND FISH PRODUCTS IN KOREA

and Chalfant (1993) was used to determine an appropriate demand system for Korean meat and
fish products. The Hausman endogeneity test was conducted to check the endogeneity of the
expenditure term.

Past studies assumed that fish products are separable from meat products, when they
estimate the demand for meat products in Korea. Koo, Yang, and Lee estimated Korean meat
demand, using a general switching AIDS, to evaluate structural changes in meat consumption in
Korea. Kim and Sa investigated model specifications for the Korean meat demand system using
the procedure developed by Alston and Chalfant. Shin analyzed the impact of beef trade
liberalization in Korea and suggested that if the quality of Hanwoo beef were similar to high-
quality imported beef, Hanwoo beef would lose its price competitiveness. Quality differentiation
would induce consumers to pay more for Hanwoo beef than for imported beef.

Korean Meat and Fish Industries

The demand for meat products has increased from 0.4 million metric tons in 1980 to 1.3
million metric tons in1996, along with the growth in national income. Per capita consumption
was 1.2 kg for beef, 2.6 kg for pork, and 1.4 kg for chicken in 1970 and increased to 7.9 kg for
beef, 15.3 kg for pork, and 6.1 kg for chicken in 1997.

Among meat products, beef is the preferred meat in Korea, but pork has become more
popular since it is less expensive. People in high-income groups tend to eat more beef, while
low-income consumers generally choose less expensive pork. Pork consumption could decrease
in the future as income increases, while beef consumption could increase.

Hanwoo (Korean domestic cattle) beef production does not meet the increasing trend of
beef consumption. As a result, beef imports increased from 7 thousand metric tons in 1988 to

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