Analysis of Changes in the Dealer Business Model of Animal Feed Companies as the Development of the Livestock Industry

This study analyzes the growth of the animal feed industry in South Korea and the changes in the dealer business model of feed companies, focusing on the case of Cargill Agri Purina. With rapid economic growth, the consumption of various forms of animal protein increased significantly in South Korea, with per capita meat consumption nearly doubling from 31.9 kg in 2000 to 62.9 kg in 2023. The swine industry reached 10.99 million head in 2023, while Hanwoo cattle grew to 3.56 million head, driven by policy changes including carcass grading systems, branding initiatives, and the establishment of the Hanwoo Association. The feed industry recorded a cumulative production milestone of 20 million tons in 2019. In response to the scaling and industrialization of livestock farms, the dealer business model evolved from simple purchase-and-resale to comprehensive service provision encompassing customized advisory, logistics, technical support, and regulatory compliance assistance. The study identifies five key implications: the growing strategic importance of dealers as service providers; the necessity of tailored farm-specific services to build long-term relationships; the need for continuous expertise development in livestock technology; the imperative to support farms in meeting environmental regulations; and the need for flexible long-term strategies accounting for farm owner aging and generational succession.