• Journal of Korean Society of Rural Planning
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• v.28 no.4
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• pp.31-39
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• 2022

This study empirically analyzed the welfare effect of the military purveyance program, which plays an important role in maintaining the sales channel and demand base in Korea's agricultural and livestock industry, as well as the stable supply of safe ingredients for military meals essential for the morale and combat power of soldiers. The military purveyance program causes additional demand for domestic livestock products, affecting the trading volumes and price levels in the market. This will change the welfare of producers and consumers, and affect the welfare of soldiers who are subject to military meals. The analysis results obtained through a simulation method based on the equilibrium displacement model are as follows. In the case of pork delivered for military service, producer surplus increased by KRW 55.3-62.2 billion and consumer surplus decreased by KRW 55.1~62.0 billion based on pork production in 2021. It wad analyzed that the consumer surplus in the military supply market, rather than the conventional market, increased by KRW 96.9 billion won, resulting in a total welfare gain of KRW 97.1 billion.