Research Reports
Policy Improvement on Agricultural Marketing in Producing Districts
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AuthorGouk, Seungyong
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Publication Date2011.11.30
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Original
The purpose of this study is to evaluate the existing policies on agricultural marketing in producing districts based on an analysis of marketing status. The number of farmers' marketing organizations in 2006 was 383, but it had risen to 779 in 2009. Farmers' marketing organizations that sell tangerines and apples sold more than 50% of the country's total production of the fruits. Organizations handling carrots, onions, and pears sold about 50% of the total production. Organizations handling potatoes, garlic, and persimmons sold 20~40% of the total production, but organizations handling tomatoes and cabbage did not meet the 20% level. The size of average sales increased from 10,493 million won in 2006 to 13,557 million won in 2009.
The problems of agricultural marketing policies are found as follows. First, the subsidies for raw material purchase are over 90% of the policy funding. Second, as there are similar/duplicate projects with different funding source and administering department, inefficiency may arise with respect to agricultural marketing policy across the board. Third, the institutional means to achieve policy goals were not utilized, and sufficient policy outcomes are not met. Fourth, practical policy measures are not enough for the expansion of farmers' marketing organization. Finally, the roles of local governments, which are also policy executors, are unclear.
The directions for improvement of agricultural marketing policies are as follows. First, reduction of short-term financing policy and development of long-term financial support policies focused on restructuring marketing in producing districts are required. Second, there is a need for consolidation of similar projects and development of consumer-oriented policies to increase policy efficiency. Third, a policy system that promotes collaboration among the central government, local government, and farmers' marketing organization should be built. Finally, in addition to the support policy, institutional means should be developed at the same time to maximize policy performance.
Researchers: Seung-Yong Gouk, Eui-Sik Hwang
Research period: 2011. 1. - 2011. 10.
E-mail address: gouksy@krei.re.kr
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