Identification of Association between Supply of Pork and Production of Meat Products in Korea by Canonical Correlation Analysis

Abstract

To identify correlation between fresh meat and processed meat products, we performed canonical correlation analysis (CCA) to predict the relationship between pork supply and meat product production in Korea. Results of CCA showed a canonical correlation of 0.8576 in the first canonical pair (p<0.01). The production of meat products showed the highest correlation with pork import but the lowest correlation with the production of domestic pork. Although Korean consumer preferred meat products produced by fresh domestic pork, inexpensively imported pork with high share in meat products was supplied in the market. Therefore, securing domestically produced raw meat is important for expanding consumption of domestic meat products. Results of this study suggest that meat processor and pig producer can achieve the 6th industrialization by combining the production of raw pork materials, meat processing, and sales service.