Research Reports
The Current State and Prospects of China's Environment-Friendly Agro-Food Market
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AuthorJeon, Hyoungjin
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Publication Date2010.11.01
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Original
This study was launched with the recognition that as China is emerging as the consumer market of the world, there is a need to seek an entry into the market for Korea’s environment-friendly agricultural products. The purpose of this study was to find out the current state and characteristics of China’s environment-friendly agro-food market and based on this understanding present policy implications for Korea’s environment-friendly agro-food industry from the two points of view of ‘threat’ and ‘opportunity.’
The policy implications derived from this study are as follows.
First, China’s environment-friendly agricultural products can be a big threat to the whole of Korean agriculture when the circumstances for trade between Korea and China change, such as signing of a free trade agreement, and when China's low-price, high-quality agro-foods are imported into the domestic market. Therefore, there is a need to build a monitoring system for tracking China’s environment-friendly agro-food industry and markets.
Second, a systematized production and management system based on the model of 'enterprises+production base+farm households' is firmly established in the Chinese environment-friendly agro-food industry, and enterprises play a very significant role. This is basically different from the production and management structure of Korea's environment-friendly agriculture which is based on family farms or small-scale production units. In Korea, too, it is necessary to come up with policy measures that can strengthen the linkage between domestic agro-food firms and farm households that produce environment-friendly agricultural products.
Third, the environment-friendly agro-food market in China is still a niche market. In entering the Chinese market, it is in a sense more realistic to export agricultural products in the form of processed goods rather than fresh agricultural products that would face more constraints. For this purpose, it is necessary to foster production and management entities equipped with advanced processing technologies. Also, it is necessary to positively examine measures for making inroads into the Chinese market in the form of agricultural investment or exports selling agricultural materials used in environment-friendly farming.
Fourth, in order to facilitate the entry of Korea's environment-friendly agro-foods into world markets including China, it is necessary to secure a quality assurance system that is comparable to global standards and register them as certified green products in export markets. In order to enable domestic certification of environment-friendly agro-foods to be valid in the Chinese market, it is necessary to sign a treaty recognizing Korea's eco-labels.
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