"Noticeable Changes": 3.6 Billion Invested to Transform Slaughterhouse with Automation and Resource Utilization [FTA Transforming Agriculture] ⑤

Busan-Gyeongnam and Daejeon-Chungnam Livestock Markets
Government Loan Support Drives Improvements in Productivity, Hygiene, and Environment
Visible Results in Automation and Resource Utilization

The domestic supplementary measures for Free Trade Agreements (FTA) promoted by the government are leading to structural improvements in slaughter and processing facilities. The Integrated Pukyong Livestock Products Market of the Pukyong Pig Farming Cooperative Association, a key hub in the Busan and Gyeongnam region, and the Porkville Livestock Market under the Daejeon Chungnam Pig Farmers' Cooperative in the Daejeon and Chungnam region, have modernized their facilities, simultaneously enhancing productivity, hygiene, and environmental performance. These sites are now recognized as practical examples of strengthening the competitiveness of domestic livestock products. In a situation where competition with imported livestock products is inevitable, the evolving role of these markets-from simple slaughterhouses to infrastructure that guarantees quality and trust-is highly significant.

Pukyong Livestock Products Market: Scaling Up with Automation and Resource Recycling

The transformation of the Pukyong Livestock Products Market began in earnest with government support. In 2023, the market secured 3.6 billion won in government loans through the Livestock Slaughter and Processing Business Support Project, focusing these funds on modernizing slaughter and processing facilities. Key investments, such as expanding the holding area, introducing automated transport systems, and improving hygiene and ventilation systems, were implemented in phases. These investments marked the starting point for large-scale structural improvements that would have been difficult to achieve with the market's own funds alone. Market officials explained, "Given the high upfront costs of slaughterhouse equipment, without loan support, the pace of improvements would have inevitably slowed significantly," adding, "In the field, the FTA supplementary measures essentially served as a catalyst for structural transformation."

The direction of facility improvements centered on advanced process automation and enhanced hygiene management based on the Hazard Analysis and Critical Control Points (HACCP) system. By expanding the holding area and reorganizing livestock movement lines, the reliance on manual labor was reduced, and by standardizing the slaughter process flow, variations due to differences in worker skill levels were minimized. Long-standing issues raised by shipping farms, such as long wait times, congestion in the holding area, and complaints about odors, were largely resolved through equipment relocation and process distribution. As bottlenecks that used to recur during peak volumes were alleviated, indirect cost savings from improved work efficiency also became apparent.

An official from the market stated, "In the past, when volumes surged, the burden on the site would directly translate into quality control risks. Now, with the support of upgraded equipment, the workflow has become much more stable," adding, "The slaughterhouse has shifted from a 'maintenance-oriented structure' to a 'management-oriented structure.'"

Panoramic view of the Integrated Pukyong Livestock Products Market of Pukyong Pig Farming Cooperative Association Photo by Nonghyup Central Association

The level of hygiene management has also been raised. By expanding high- and low-temperature sterilization equipment and hygiene washing lines, and introducing equipment that structurally blocks cross-contamination, a system was established to proactively manage hazards throughout the slaughter process. Repetitive processes were replaced with automated trimming and transport equipment to ensure uniform quality, while reducing worker fatigue and increasing process stability. Improvements to exhaust, ventilation, and wastewater treatment facilities not only enhanced the work environment but also reduced odors, thereby easing the burden of environmental management.

These changes are also reflected in the numbers. After the facility improvements, the number of cattle slaughtered at the Pukyong Livestock Products Market increased by 87.7%, and the number of pigs slaughtered rose by 53%. The key point is not simply the increase in volume, but that the introduction of automation equipment has stably expanded processing capacity per unit time, significantly reducing the bottlenecks that used to recur. Even as volumes increased, the line speed could be consistently maintained, reducing both quality variation and the likelihood of rework, which in turn led to lower management costs per head of livestock slaughtered.

A field worker noted, "As manual processes have decreased, quality variations have become noticeably smaller. The biggest change is that even with increased volumes, there is no longer a need to rush processing as before."

The improvement in operational efficiency brought about by higher utilization rates is also notable. The cattle slaughter utilization rate increased from 45.5% to 53.4%. As utilization rose, fixed costs such as depreciation and maintenance were spread over more slaughtered animals, improving the cost structure. Utility costs-including electricity, water, and gas-also became more efficient due to economies of scale.

Environmental performance is another key area of change at the Pukyong Livestock Products Market. The resource recycling rate for by-products and waste generated during the slaughter process has reached 99%. This was achieved by improving waste sorting and collection systems from the start of the process and significantly enhancing the capacity and efficiency of rendering (the process of recycling slaughter by-products into resources using heat and pressure). By expanding the capacity of rendering equipment, the facility can now process all waste generated by increased slaughter volumes, minimizing process losses and recovering most of the input waste as resources. The reduction in costs for outsourcing waste treatment is an additional benefit.

Exterior view of Daejeon Chungnam Pig Farmers' Cooperative Porkville Livestock Market. Photo by Nonghyup Central Association

Porkville Livestock Market: A Model for Stabilizing Farm Management and Enhancing Quality

Alongside the Pukyong Livestock Products Market, the Porkville Livestock Market in the Daejeon and Chungnam region is cited as another field example of FTA domestic supplementary measures. The Porkville Livestock Market received a total of 4.3 billion won in loan support, which was used for working capital, raw meat purchases, and the renovation of slaughter and processing facilities. Of this, about 3.2 billion won was allocated to working capital and raw meat purchases for member farms, alleviating their financial burden, while about 1.1 billion won was used for the renovation of slaughter, processing, cooling, and hygiene facilities, serving as a foundational investment to reliably maintain quality and hygiene standards.

The Porkville Livestock Market has benchmarked advanced overseas slaughterhouses, such as those in Denmark, but rather than directly importing equipment, it has improved processes to suit domestic working conditions and quality demands. By repeatedly refining worker movement lines and process connections, a system was established to reliably manage carcass quality and freshness. This cumulative improvement has led to better quality indicators.

The results are evident in the figures. The number of cattle slaughtered at the Porkville Livestock Market increased by 24%, and the pig slaughter utilization rate rose from 88% to 94%. The introduction of rapid-freezing and pre-cooling tunnels reduced drip loss from carcasses, enabling stable management of key quality factors such as meat color and water-holding capacity. The expansion of automation equipment also helped reduce work intensity and lower the risk of industrial accidents.

Exterior view of Daejeon Chungnam Pig Farmers' Cooperative Porkville Livestock Market. Photo by Nonghyup Central Association

A representative from the Porkville Livestock Market explained, "Automation is not a means to replace workers, but a device to reliably handle increasing volumes while reducing the burden on workers. A structure has been created that allows for the optimal allocation of personnel according to line speed and process characteristics."

Environmental improvements have also continued. As slaughter volumes increase, the Porkville Livestock Market processes by-products and waste through consignment, raising the recycling rate. While the facility does not directly produce compost, waste is linked to resource recycling processes such as composting, ultimately resulting in increased production of organic fertilizers. This is a meaningful change in that expansion of slaughter volumes and environmental management can be achieved simultaneously.

These markets are not simply processing facilities, but core infrastructure supporting the quality and safety of domestic livestock products. As competition with imported meat intensifies, securing competitiveness in fresh meat through automation and strengthened hygiene and environmental standards becomes the front line of defense for the domestic livestock industry. On the ground, it is clear that loan-based support has served as a catalyst for facility improvements, but there are also concerns that, in a period of high interest rates and rising energy prices, the burden of repayment could increase.

A representative from the Pukyong Livestock Products Market stated, "The competitiveness of slaughterhouses is directly linked to the competitiveness of domestic livestock products. If continuous facility improvements and institutional support continue, we will be able to effectively compete with imported meat."

Production Support: Ministry of Agriculture, Food and Rural Affairs · Korea Rural Economic Institute