Research Reports
The Current State and Development Strategies of Regionally Specialized Agri-business
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AuthorPark, Moonho
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Publication Date2014.12.30
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Original
Background
Various policies for regionally specialized agri-business have been conducted for social vitality in agricultural areas and value added enhancement. However, a local govenment’s unsatisfactory capability to develop policy, unsystematic establishment of a plan, and project management brought out some problems such as ineffectiveness of the financial management and development gap of agri-business between local governments. In this situation, some measures regarding planning, strategies, business operation, post-management are required for efficient implementation of the regionally specialized agri-business.
Methodology
This study seeks measures to strengthen support methods for promotion of regionally specialized agri-business throughout analyzing actual conditions of regionally specialized agri-business, and benchmarking of best practices. Based on implementation system, structure analysis, performance analysis, and demand evaluation related to promotion of regionally specialized agri-business, this study draws the policy issues regarding regionally specialized agri-business. In addition, this study finds strategies for the development by collecting case studies and extensive opinions from specialists.
Results and Implications
Current policies for promotion of regionally specialized agri-business have some problems. First, because of a perfunctory establishment of a plan to invite projects, a plan with a long-term vision of industry cannot be set up. Second, they lack strong leadership of local governments and the will to act. Third, they also lack efficient governance which unifies production, processing and marketing. Fourth, agri-business is similar from region to region and they cannot amplify the synergy by sharing responsibility between regions. Fifth, they lack difference regarding business contents, implementation plans, and support contents between regions.
It is shown that effects of regionally specialized agri-business on contribution level of community revitalization is high and to strengthen local organization of agricultural sector’s capabilities are the most important task. Additionally, R&D in the processing, and combination field is relatively vitalized, rather than the production, and marketing field.
Regional case studies show that their projects are inclined to depend on local government’s capability, because they are led by the government. Project specialty has been weakened due to the absence of cooperation with an agricultural technology center. The degree of R&D and technology distribution is very low in the region where processing business is mainly implemented. Moreover, some regions with high concentration in production-marketing focus on R&D in business cooperation with Provincial Agricultural Research & Extension Services.
Policy directions for development of regionally specialized agri-business are shown below. First, they should be established in terms of balanced regional development. Regionally specialized agri-business can take many different forms depending on the characteristics of regional resources and the degree of development. Therefore, it is required to establish improvement plans of regionally specialized agri-business in the long run. Second, it should reflect regional characteristics and stage of development. Regional disparity between region has become widened in the process of promotion of regionally specialized agri-business since 2000. It should consider agricultural conditions and stage of development. Third, The integrated support system is needed. Integrated support system, rather than direct support to individual manager, is required to promote scale-up, concentration, and specialization of regionally specialized agri-business. Fourth, it is necessary to activate private organizations. It requires some measures regarding R&D which could strengthen related operator’s competitiveness, finance, marketing, consulting that may invigorate the function of related private organizations.
Researchers: Park Moon-ho, Kim Yong-lyoul, Kim Young-june
Research period: 2014. 1. ~ 2014. 10.
E-mail address: mhpark@krei.re.kr, kimyl@krei.re.kr, keepahead@krei.re.kr
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