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Research Reports

KREI publishes reports through medium- and long-term research related to agricultural and rural policies, and through studies in various fields to promptly respond to current issues.

Suggestions for Quality Control of Co-Branded Forest Products for Export

2011.12.30 46681
  • Author
    Seok, Hyundeok
  • Publication Date
    2011.12.30
  • Original

Co-branding of forest products for export is one of the schemes to differentiate exports and encourage competitiveness amid the recent liberalization of the agricultural market. Successful co-branding of forest products for export requires management of production, quality, marketing and brand reputation. Also, it is essential to nurture export promotion organizations.
In this study, we first suggest quality standards to control the quality of co-brands. In order to establish the standards, we identified market trends in importing markets per item (chestnut, shiitake, persimmon) and gathered opinions on the quality standards from various exporting companies and producers who are willing to participate in co-branding. The quality standards should reflect the circumstances of export markets. Thus, we have taken various considerations that are regarded as essential to reflect the market reality.
Second, we selected main supervising agents responsible for managing the export organizations of co-brands. The export-specialized organizations have to sustain the abilities as follows: ① secure the supply for export, ② maintain quality, ③ manage product safety, and ④ possess skills for overseas marketing. The main supervising agents are selected after evaluating such abilities among existing exporters.
Lastly, in order to maintain the co-branding project of forest products as a continuous export promotion project, we suggest a long-term road map for each export item for the whole exporting process, which includes management of production, commercialization, and branding.

1. Chestnut
The product specification for chestnut has been created after analyzing the target export country’s needs and buying patterns. Separate product specifications are also developed for peeled and unpeeled chestnuts to boost customer awareness and confidence of the product. The sorting and class standards of chestnut were conceived separately for the unpeeled and peeled chestnuts according to their target export countries: a specification for the export of unpeeled chestnuts to the United States and France, the two major target countries for export, and a specification for the export of peeled chestnuts to Japan.
An underlying strategy to systematically develop co-brands for chestnut export was conceptualized through a 10-year mid/long-term road map.
The first stage (1~3 year) is management foundation stage, which aims to carry out export activities jointly through the merger of export-specialized organization and export agency.
The second stage (3-6 years) is infrastructure development stage, which aims to vitalize the co-brand by creating a competitive export infrastructure. Establishing the infrastructure includes not only physical assets but also technical and organizational infrastructure. Operation of an export-specialized complex for chestnut is a very important task for accelerating chestnut export. The export-specialized complex has several important purposes. First, it will increase the share of contract farming. Second, education and coordination between the farms of the export-specialized complex will facilitate the conversion of the farm’s perspective on the organization and product quality. Domestic production of chestnut has traditionally been concentrated in the southern part (Gyeongsangnam-do) of the country. However, in recent years the production has been the greatest in Chungcheongnam-do and Chungcheongbuk-do (Buyeo, Gongju, and Chungju). Therefore, designating Chungcheongnam-do and Chungcheongbuk-do as the specialized export complex of chestnut will maximize the efficiency of complex operation, exportation, and quality control.
The third stage (6-10years) is the consolidation of a co-brand at the national level with the support of a national organization. This consolidation aims to give the management of a joint chestnut brand the ability to independently make decisions on export activities. By controlling the whole export process from cultivation to packaging, shipping, and joint overseas marketing, the national organization can achieve quality standardization and brand competitiveness represented in the co-brand “Corearam.”

2. Shiitake Mushroom
In the case of "KOSH," the shiitake co-brand, we classify the product into two categories: fresh shiitake and dry shiitake. Then we suggest appropriate managing strategies for each category. The quality standards of dry shiitake are mainly based on market circumstances of main export markets (Japan, Hong Kong and Taiwan). The quality standards of fresh shiitake are obtained differently depending on the target market (Asia and Europe-America).
First, in the case of dry shiitake, we need to establish an export-specialized organization by combining exporters and producers of shiitake in Jangheung and Geoje, the two major cultivation regions. Also, we need to support the construction of a distribution center to strengthen the ability of the export-specialized organization. Moreover, since dry shiitake has less time and distance constraints compared to fresh shiitake, the export-specialized organization of dry shiitake can expand into the national scope in the future.
In the case of fresh shiitake, however, it is difficult to transport them over long distances or store them for a long period. Therefore, we need to establish an export-specialized organization in a desirable location within Chungcheongnam-do, where Buyeo, Cheongyang and Nonsan, the three major cultivation areas of fresh shiitake, are located. Further, we need to provide support for the construction of infrastructure, such as "Cultivation Supply Center" for expansion of sawdust cultivation or cold storage facilities, and strengthen the ability of the export promotion organization. And since it will be easier to manage and achieve consistent performance of a fresh shiitake co-brand, it would be more wise to develop the fresh shiitake export industry as a local specialty industry in the Chungnam region than to expand it into a national industry as in the case of dry shiitake.

3. Persimmon
Quality grade standards for persimmons are suggested for non-astringent persimmons, dried persimmons, half-dried persimmons, and sliced-dried persimmons. As for the size of non-astringent persimmons, the original plan was to apply the quality grade standard of sweet persimmons. But since the seedless Cheongdo flat persimmons are smaller than the size S, an alternative standard is suggested, and the quality standards for dried persimmons, half-dried persimmons, and sliced-dried persimmons are made to reflect the test results of moisture content and sugar level of persimmons harvested in 2011.
The first step of a long-term plan is to form an export-leading organization through a union between the current export promotion agency and exporting companies. The second step is to build an infrastructure necessary for export, which includes facilities and technical, structural environment. In the final stage, a joint brand can be developed after establishing an export complex for processed persimmons through the combination of chief production districts of each product category with nearby cultivation areas.

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