Hanwoo refers to Korea’s indigenous
cattle breed, widely regarded as a high-quality, premium beef. Normally,
prices adjust to balance supply and demand—rising when demand outpaces supply
and falling when the reverse occurs. But Hanwoo appears to defy this rule. Between
2011 and 2016, the price of a single Hanwoo cattle rose significantly, from
$2,800 to $4,800. Interestingly, during the same period, the number of Hanwoo
cattle dropped from 3.05 million in 2012 to 2.6 million in 2016.
Hanwoo prices stray from conventional
market theories due to the significantly longer production cycle compared to
manufacturing. While smartphone or car production can be adjusted within 1-2
months by tweaking parts procurement and factory schedules, raising beef cattle
takes a full 40 months. This makes it impossible for ranchers to quickly ramp
up production even when prices surge.
An industry with a production timeline
comparable to Hanwoo is apartment construction. Builders must first secure
government permits and establish a sales office to sell units, a process that
typically takes about a year—similar to the gestation period for Hanwoo. Even
after sales, completing construction and allowing residents to move in takes at
least two more years. The process involves land preparation, underground and
above-ground construction, and finishing, with larger complexes requiring even
more time. The 2–3 years of construction time is similar to the rearing period
for Hanwoo.
The extended timeline needed for apartment
construction makes the supply unresponsive to shifts in demand, leading to
mismatches that drive large market cycles. Furthermore, apartment prices are
heavily influenced by broader economic conditions, interest rates, and
regulatory changes
An article written in the past : https://blog.naver.com/dedefghi/221286419642
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