Analysis of Management Efficiency of Check-off Board in Korea Using DEA

Abstract

In 2002, Korean government introduced the check-off system and now Korea has 16 check-off boards including Korean beef, beef, pork, milk, chicken, duck, Korean ginseng, paprika, mandarin, and environment-friendly agricultural products. Basically, the check-off is one of the excellent ways to support farmer and thus Korean government have kept promoting the check-off boards. Even though many researchers studied about the Korean check-off, no study focuses on the management efficiency of check-off boards. The objective of this study is to measure the management efficiency of Korean check-off boards and to provide the benchmarking information that can improve the management efficiency of check-off board. DEA was used to analyze the management efficiency of 10 check-off boards in Korea. The results present the several findings as follows: The check-off boards of Korean beef, chicken, duck, and paprika show the inefficient management efficiency. Therefore, these check-off boards need to increase the management efficiency or the rate of check-off. Especially, these check-off boards might spend more check-off fund to manage the stability of supply-demand and to operate the other programs of check-off board, instead of advertisement and promotion which are the main programs of check-off board.