Evaluation of the economic value of providing service of poultry price information

Abstract

In Korea, the poultry industry is the one of important agriculture industries and keeps increa- sing the size of industry. Poultry products, represented by chickens, eggs, and ducks, have a smaller value per head than cows or pigs, but the number of produced and distributed poultry products is very large. These characteristics of poultry simultaneously demonstrate the diffi- culty of collecting price information and the importance of offering price information. The main goal of this study is to evaluate the economic value of providing service of poultry price information by Korea Institute for Animal Products Quality Evaluation (KAPE). Using the re- sults from survey of information users, the economic value of providing service of poultry price information is estimated through the double-bounded dichotomous choice contingent valu- ation model. The results present that the individual’s willingness to pay (WTP) of providing service of poultry price information by KAPE is estimated to be 28,526 won, and therefore the annual economic value of providing service of poultry price information is estimated 1.17 billion won. Since the annual budget of the providing service of poultry price information by KAPE is 134 million won, it was analyzed that the economic value of the KAPE’s service is about 8.3 times the budget.