Systematizing Production Cost Items by Region and Scale
Improving Issues Through Management Stability Strategies
On June 25, Jeonnam Province announced that it would launch a full-scale study to analyze the production cost structure of the abalone aquaculture industry, aiming to address and improve the industry's challenges, such as price declines caused by overproduction and mass shipments, and to develop countermeasures.
This study will be conducted by Jeonnam Province in collaboration with the Jeonnam Research Institute and abalone aquaculture farmers. The plan is to systematize the cost structure of the abalone aquaculture industry, calculate production costs segmented by farm size and region, and establish strategies for production efficiency and management stability.
The main research topics include: ▲ analysis of production cost structures by farm size (100 cages or fewer, 100-200 cages, and 300 cages or more); ▲ production cost analysis considering facility investment costs such as abalone pens, labor costs, fuel costs, and depreciation expenses; and ▲ calculation of costs based on the number of unsold abalone and by breeding period.
In addition, the study aims to propose a new sales model that reflects production costs, moving away from the traditional sales method based on the number of abalone, in order to establish a standardized pricing model for abalone sales and maximize farm profitability by optimizing shipment timing.
The results of this study will be used to diagnose the current state of abalone aquaculture operations, serve as foundational data for structural improvement measures and policy development, and provide practical production standards for farmers, thereby contributing to the sustainability and market stability of the abalone industry.
Jeon Changwoo, Director of the Eco-friendly Fisheries Division of Jeonnam Province, said, "By identifying the challenges facing the abalone industry, this will lay the groundwork for establishing improvement directions that will be of real help to abalone aquaculture farms."
To ensure the research is thorough, Jeonnam Province recently held roundtable discussions with abalone aquaculture farmers in each city and county to gather on-site opinions and reflect them in the research direction.
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