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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.

The Orchid Industry: Current Status and Development Tasks

2012.11.30 39785
  • Author
    Park, Hyuntae
  • Publication Date
    2012.11.30
  • Original

Korea's orchid industry has continuously grown along with the development of floriculture. In 2011, the cultivation land for orchids was 213ha, and although it accounted for only 3.1% of total land for floriculture, it increased more than four times from 1990. The speed at which the cultivation land increased was a lot faster than the approximate 2-fold increase of the cultivation land for floriculture during the same period. However, the cultivation land as well as production amount peaked in 2005 and it has shown a decreasing trend since then as in the case of other flowering plants. The reason is that the overall demand for flowering plants has decreased due to the economic downturn since the mid-2000s.
Nevertheless, the orchid is an agricultural product that has a great potential for growth both in domestic consumption and export. Therefore, there is a need to redress the current problems and find a breakthrough for the industry's development. Under such a background, this study aims to identify the problems of Korea's orchid industry by sector and draw up the tasks for its continued development.
First of all, the biggest problem the domestic orchid industry is facing today is that it is highly dependent on imports because there are not many varieties and the technology level needed to develop the varieties is generally low. Second, the farm management is very unstable because of high operating cost due to continued increase in the price of agricultural inputs such as oil and stagnant consumption resulting from economic recession. Third, the foundation for expanding the export is weak because the product varieties and export markets are limited. Fourth, the distribution is inefficient because distribution techniques and facilities are insufficient. Finally, appropriate government support is lacking for the negotiation of quarantine conditions or in the process of building a base for increasing consumption.
Development directions and goals by sector should be set to solve these problems and take the orchid industry to a new level, and the tasks that need to be accomplished to achieve this goal should be drawn up and executed.
As for the task that needs to be performed in relation to variety development, it is necessary to reduce orchid farmers' dependence on foreign varieties by developing domestic ones that are high quality and appealing to consumers and that have a good chance of being exported. In addition, it is necessary to build a mass production and distribution system so that the supply of domestic varieties can be expanded.
In the field of cultivation, it is necessary to take measures that can help produce high-quality orchids by continuously modernizing production facilities and by developing and disseminating standard cultivation techniques. Above all, it is necessary to introduce a product tracking system so that domestic seed producers and farmers can be protected.
In the distribution sector, there is a need to introduce various trading systems to cope with changes in the retail environment. In addition, facilities and equipment that can improve the efficiency of logistics in production regions, especially in export complexes, should be provided.
In the import and export sector, it is necessary to continuously diversify export markets and find promising products for export. Also, it is necessary to instill a fresh breath of “export mindset” into farmers and exporters and take measures to improve related systems such as the post-management system so that orchids can be exported stably.
In so far as policies are concerned, it is necessary to improve the quarantine system so that the traded products that are currently struggling in the U.S. market can be competitive enough to compete with the products of other exporting countries. Also, there should be more support to lay down a foundation to make the use of flowers a way of life and increase the consumption of flowers by easing unrealistic regulations.


Researchers: Hyun-Tae Park
Research period: 2012. 2 - 2012. 11.
E-mail address: htpark@krei.re.kr

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