Research Reports
A Feasibility Study for Building an Agricultural Distribution Complex in Gyeongnam Province
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AuthorCho, Myungki
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Publication Date2008.11.01
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Original
The global environment for the production and distribution of agricultural products has been embracing new changes from the rapid restructuring of industries. In contrast to this, however, the Korean agriculture and rural communities that center around small farms without suitable countering powers are facing an increasingly tough environment under stiff market competition.
As the liberalization of the domestic market to imports has been accelerating since 1990 together with the opening of the distribution market, a competition system among various distribution channels and players is formed at the consumption level, calling for a new supply system and changes at the production level. In other words, as the distribution system of current suppliers crumbles and as the market rapidly restructures around consumers and distributors, activities that can enhance the bargaining power of producers in the distribution market are needed to cope with these changes.
The provincial government of Gyeongnam plans to bring about an economy of scale by optimizing the farming scale of each crop item and production area. In doing so, it seeks to raise the attractiveness of products and added values by integrating small and scattered distribution centers under a zone system through the realignment of their functions. In addition, the local government plans to increase the product value of agricultural products and farmers' income by increasing their bargaining power and by branding products.
This study examined the feasibility of building an agricultural distribution complex in the Gyeongnam region and presented directions for the deployment, management, and operation of proper-scaled facilities for conducting efficient distribution functions.
Researchers: Myung-Ki Cho, Chang-Gon Jeon
E-mail address: chomk@krei.re.kr
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