• Journal of Distribution Science
• /
• v.12 no.2
• /
• pp.73-79
• /
• 2014

Purpose - The Korean government has revised the distribution industry development law to regulate large-scale retailer operations to protecting medium- and small-scale retailers and traditional markets. According to the revised law, large-scale retailers must follow regulations on operating hours and compulsory store closures two days per month. Based on the revised distribution industry development law, most local governments regulate operation hours and they have adopted compulsory closure programs for large-scale retail stores. However, it is argued that fresh food producers suffer from a decrease in sales based on the compulsory closure of stores operated by large-scale retailers. Large-scale retailers reduce their fresh food orders from agricultural and fishery producers because of the compulsory store closures. Fresh food producers also suffer from a decrease in prices because reduced orders lead to a decrease in auction prices based on the availability of excess goods in wholesale markets. This paper investigates the effects of operation regulations for large-scale retailers on agricultural producers by surveying agricultural and fishery producer organizations. Research design, data, methodology - A survey was conducted on 117 producer organizations of fruits and vegetables, cereals, fisheries, and livestock products from September 10 to October 4, 2012. Survey items are annual sales, shares of sales accounted for by large-scale retailers, reduction of orders and prices from large-scale retailers, methods to deal with the sales reduction, unfair trade practices of large-scale retailers, opinion of the large-scale retailer regulations, and so on. The average sales of the sampled producer organizations are 13.7 billion won and the average share of sales accounted for by large-scale retailers is 35.4%. Results - Survey results show that the sample producer organizations' sales decreased 10.1% because of the compulsory closures of stores operated by large-scale retailers. It is estimated that the total sales of producer organizations decreased 371.2 billion won because of the regulations on the operation of large-scale retailers. In addition to the direct effect of a sales decrease due to order reduction, agricultural and fishery producer organizations suffered from the secondary effect of price reduction in wholesale markets. When orders from large-scale retailers decreased, most agricultural and fishery producer organizations shipped redundant products to wholesale markets, decreasing auction prices. It was estimated that the price received decreased 21.9% when sold in other marketing channels. As producer organization sales decreased, it was reported that the labor force employed by producer organizations also decreased by 15.1%. Therefore, we can conclude that the regulations for large-scale retailer operations resulted in negative impacts on agricultural producers. Conclusions - Although the sales reduction due to the regulations for large-scale retailer operations are not great, the cumulative effects due to the continued compulsory closure of stores operated by large-scale retailers could be great. This paper suggests governmental programs that could help agricultural producer organizations to find new and effective marketing channels such as direct marketing, farmers' markets, exports, Internet shopping, and so on.

• Journal of Distribution Science
• /
• v.13 no.6
• /
• pp.97-104
• /
• 2015

Purpose - The distribution of agricultural products is changing due to recent shifts in environmental free trade. Specifically, the competitiveness of domestic agricultural products has weakened as a result of the Korea-China Financial Trade Agreement. Agricultural producers are faced with increasing difficulties and organized production centers are growing in importance daily. To overcome this crisis, agricultural producer organizations are vying for environment-friendly agricultural certifications, Good Agriculture Practices (GAP) and Hazard Analysis and Critical Control Point (HACCP). In particular, as consumer demand for higher safety grows, farmers are increasing their certification rates. Therefore, this certification system is expected to help strengthen the competitiveness of agricultural producer organizations. Research design/data/methodology - Organized production centers are classified by certification. A survey was conducted with 91 organizations using factor analysis and logistic regression analysis for the examination. The factor analysis results are as follows. Raw material procurement, education·specialization, marketing, joint business, organizing ability, business management, effectiveness, certification, and larger organizations were classified as the nine types of factors. These factors affect the organized production centers and are used in the logistic regression analysis. The purpose of such research and analysis is to suggest a direction for future production center policies. Results - The basic statistical results are as follows: analysis of the producer organizations of 91 sites, average number of members per site of 1,624, and average sales of 25,961 million won. Additionally, the average income per farmer is 175 million won, and the pooling system rate is 53.5%. The factor analysis results are as follows. Factor 1 consists of contract cultivation, ongoing shipment, selection subdivision, traceability, and major retailer management. Factor 2 consists of manual cultivation, specialty selection, education program, and R&D. Factor 3 consists of advertising, various dealers, various sales strategies, and a unified sales counter. Factor 4 consists of agricultural materials co-purchase, policy support, co-shipment, and incentives. Factor 5 consists of the co-selection and pooling system. Factor 6 consists of co-branding and operating by the organization's article. Factor 7 consists of the buy-sell ratio and rate of operation of the agriculture promotion center. Factor 8 consists of bargaining power in volume and participation rate of farmer certification. Factor 9 consists of increasing new subscribers. The logistic regression analysis results are as follows. Considering the results by type of certification, the environment-friendly agricultural certification type and the GAP certification type have a (+) influence. GAP and HACCP certification types affecting the education·specialization factor have a (+) influence. Considering the results for each type of certification, the environment-friendly agricultural certification types on the effectiveness factor have (-) influence; the HACCP certification types on the organizing ability and effectiveness factor have a (-) influence. Conclusions - Agricultural producer organizations should develop plans as follows: The organizations need to secure education for agricultural production; increase the pooling system ratio for sustainable organizational development; and, finally, expand the number of agricultural producer organizations.

• Korean Journal of Organic Agriculture
• /
• v.23 no.3
• /
• pp.423-453
• /
• 2015

This study started with two questions. The first question is 'Why does organic agriculture want to be linked with cooperative?' The second is 'What is the characteristics of the mutual relationship between organic agriculture and cooperative?', especially in Wonju. Up to now, there have been various kinds of discussion about cooperation between organic agricultural campaign and cooperative in Wonju. But there are few concrete data showing what role cooperative plays in the cyclical process of production-distribution-consumption of organic agriculture. Thus, we conducted a survey applying the Delphi technique to the 35 organic agricultural specialists active in Wonju. First, small-scale family farm producers established a social economic cooperative network in around 2003 to perform 'the activities of innovators' through forming an organization. Producers moved from the stage in which they were supported one-sidedly by consumers to the stage where they could 'lead' cooperation. Each farm organization built a vertical integration, and horizontal cooperative systems with other farm organizations. But, practical cooperative activities have remained in the doldrums. They tend to show trends deviating from the principles of organic agriculture and cooperative. Second, the relationship between producers and consumers in Wonju can be described as 'producer-consumer cooperative type'. In Wonju, the producers' organization is not a sub-contractor which simply deliver organic agricultural products to producers' cooperative, but is an equal subject which creates its own value chain. The cooperative (cooperative organization) leads distribution and consumption of organic agricultural products and mutual communication. But, the closeness between producers and consumers has got loosened. And, it is problematic that the proportion of local food consumption in Wonju is very low. There is a very strong tendency to ride the central distribution system of producers' cooperative coalition. Consequently, it is necessary for producers' cooperatives in Wonju to run a local food distribution system based on the 'cooperative system among cooperatives'.

• Journal of Family Resource Management and Policy Review
• /
• v.9 no.1
• /
• pp.1-15
• /
• 2005

This study was designrd to determination factors of purchase expansion for environment-friendly agricultural products on consumers. The 310 subjects formatted questionnaires were analyzed to frequency, percentage, descriptives, T-test and logistic regression by SPSS WIN 10.0. The results were as follows : First, it is proved that degree of cognition, standard of information acquisition, basis of valuation were significant variables, Second, it is revealed that the producer and the direct deal, the consumer organization's co-op and the food floor of large-sized discount hoarded goods for purchase places of environment-friendly agricultural products were significant variables. Third, it is proved that reduction in a price the improvement matter for purchase expansion of environment-friendly agricultural products was determination factors. Forth, it is proved that age and income for purchase expansion of environment-friendly agricultural products was determination factors. Accordingly, we should find the positive factors of purchase and consumption that it will become an important subject for environment-friendly agricultural products on consumers.

• Korean Journal of Organic Agriculture
• /
• v.27 no.3
• /
• pp.271-288
• /
• 2019

It has continuously promoted to scale up the agricultural management body in order to cope with the market-opening pressure such as the UR negotiation, the DDA negotiation, and more conclusions of FTAs and to enhance the competitiveness of our agriculture. This study evaluated the factors associated with production organization participation centered on environmentally-friendly agriculture farmers in order to improve the production efficiency of environmentally-friendly agriculture in the aspect of production. In order to achieve this objective, this study evaluated the factors that contributed to participating in an organization using the bivariate probit model focusing on environmentally-friendly agriculture farmers in Chungnam. This study examined the validity and reliability of the study model through exploratory factor analysis. The results of factor analyses identified four factors: "distribution", "production", "organization operation", and "social capital". The results of the bivariate probit model showed that distribution significantly affected production activities and distribution, organization operation, agricultural income, and gender significantly influenced sale activities. Environmentally-friendly production organization had not been able to provide the productive support that was needed for local farmers to produce environmentally-friendly agricultural products in a region. Additionally, farming education did not provide the information needed by the farmers. Although producers had a network within a production organization, it was operated mainly for administrators. Therefore, participants felt somewhat lacking. This study identified the level of organization of producer organizations in Chungnam area, where environmentally-friendly agriculture is well activated. This study suggested implications for future production organization participation by evaluating factors affecting participation quantitatively.

• Korean Journal of Organic Agriculture
• /
• v.11 no.4
• /
• pp.15-37
• /
• 2003

Recently, production-consumption quantity and market size of environment-friendly agricultural products(EFAP) have been increased. Consumers have demanded food safety and nutrition of EFAP, but in the near future they will need many kinds of item, relatively low price and high quality. So producers have to make an effort for down-cost, increasing items and developing technical know-how, which can be attained by producer/region organization. Correlation coefficient between the recognition degree for certification system and purchasing amounts at a time is higher than other ones. Therefore public information works using the TV and newspaper must be promoted all the more about certification system. And if the consumer’s satisfaction level of EFAP purchased gets higher, the quantity demanded will be increased more. And consumer’s trust on EFAP is derived from certification system or close relation between producers and consumers. Thus the most important thing of marketing strategies for EFAP is continuously to focus on explanation and information works on certification system by region in metropolitan area. Also, it necessary to introduce green marketing principles and apply to strategies item type. Namely those need to establish target market segmentation And marketing strategy stages according to the green degrees of market And commodity.

• Journal of the Korean Geographical Society
• /
• v.31 no.2
• /
• pp.160-197
• /
• 1996

The purpose of this study is to review research trends and issues of economic geography in Korea for the last fifty years by sub-fields of agricultural geography, industrial geography, commercial and service geography, and transportation geography. Research in Korean economic geography has progressed significantly in terms of the scope and the number of papers published during the last a half a century. Agricultural geography was a leading field of economic geography in Korea before mid-1970s. Since the mid-1970s, however, agricultural geography has turned over the leading role in economic geography to industrial geography. Classification and structure of agricultural region has been the most popular research theme in Korea, even though diverse topics has been dealt in the research of agricultulal geography in Korea during the last fifty years. In recent years, emphasis is given to study on the dynamics of agricultural region and regional differentiation of part-time farming. It is suggested that the future issues of research in agricultural geography in Korea are agricultural restructuring and changes in agricultural space under the WTO system, changes in rural area and agricultural region with the progress of informatization, changes in agricultural structures and rural society by the increase of part-time farming, governments agricultulal policy and its impacts, competitive advantages of Korean agricultulal products, and environmental impacts of agricultural restructuring. Research in industrial geography has remarkably progressed since the 1980s. Locational changes, regional industrial structure and formation of industrial region were the major topics of interest in the research of industrial geography in Korea before 1980. Since the early 1980s, in addition to the topics which were interested in before 1980, changes of industrial organization and industrial location, changes of production systems and industrial space development of high technology industries and science parks, industrial restructuring and regional economy, foreign direct investments, industrial linkages and industrial districts, and industrial policy and regional development have been the major research themes of industrial geography in Korea. Considerable number of papers has been published both in Korean journals and in foreign journals during this period. Considering global changes in the organization of industrial space, future research should be more focused on firms strategy for regaining competitive advantages, local and global perspectives of industry, industry and environmental changes, in addition to the topics which have been dealt in recent years. Research in commercial and service geography and transportation geography was negligible in Korea before the late 1970s. These two sub-fields in economic geography have begun to develop since 1980s. Periodic markets, structure of commercial area, and distribution of products were the major topics of interest in the 1980s in the commercial and service geography in Korea. In the 1990s, however reserch in producer services has been active with growth of producer services in Korean economy. It is suggested that regional changes with progress of informatization and technology, changes of international trade and regional changes, development of efficient distribution system, role of producer services in regional development, and network of producer services are the major issues to be studied in the future in the field of commercial and service geography in Korea. Commuting, distribution of products, and transportation networks have been the major topics of research in transportation geography in Korea. Diverse quantitative techniques have been applied in the most of the researches in transportation geography. It is required that future studies in transportation geography should also focus on societal and behavioral issues, policy issues regional impacts of new transportation facilities, an analysis of transportation system at the global or international level. Since the 1980s economic geography in Korea has considerably progressed with publication of papers and books. The progress can be regarded as successful in quantitative aspect, but not in quantitative aspects. For the development of Korean economic geography in both quantitative and qualitative aspects, it is necessary to promote international collaborative researches and interdisciplinary cooperations. Attention should also be given to the research on changes in competitive advantages and economic restructuring, changes of economic space with the development of high technology and the progress of informatization. economic development and culture. and foreign regional studies.

• Journal of Distribution Science
• /
• v.12 no.12
• /
• pp.65-73
• /
• 2014

Purpose - Distribution of agricultural products is collapsing due to recent changes in the environment balance between retailers and producers. Further, the increase in the imports of agricultural products due to free trade has caused revenue problems for producers. Agricultural producers are faced with increasing difficulties, and the organized producing center's importance is growing each day. Korean organized producing centers' policies have been conducted since 2000, and have thus been sustained for more than 10 years. Organizing a producing center's business is focused on agricultural cooperative and farming association corporation this has already have been carried out. In addition, it has achieved significant results through these organizations, but it still has many problems. Research design, data, and methodology - Organized producing centers were classified for each type. The survey covered 90 organizations, based on factor analysis, analysis of balance, and logistic regression analysis. The results of the conducted factor analysis are as follows. Production, marketing, human resources management, organizational skills, post management, safety, and scale were classified as the seven kinds of factors. These are the factors that affect the organized producing centers through the variance analysis and logistic regression analysis. The purpose of such research and analysis is to suggest the direction for the future organized producing centers' policies. Result - Results of the analysis of the variance are listed below. Items by type, production, marketing, human resource management, and organizational skills are shown to depict differences between the factors. Organization form results show that production and marketing showed a difference between the factors. The size of the organization, production, and marketing showed the difference between the factors. The factors affect organized producing centers differently depending on the type shown, as seen from the results. In contrast, the logistic regression results of the analysis are as follows. Considering the results by the type of item, and the horticulture type of marketing, human resource management has a (+) influence. Grain type and production showed a (+) influence. New types of income affecting organizational skills have a (+) influence. Considering the results for each type of organization, the agricultural cooperative type of marketing and human resource management have (+) influence. Farming association corporation type of production has a (+) influence. As a result, the size of the organization is as follows. Large organizations are production, expressed in marketing with a (+) impact. Medium-size organizations are expressed with their size factor having a (+) impact. Small organizations are expressed with a safety factor having a (+) impact. Conclusions - The types of factors display different effects. One factor is that the type of a (+) represents the influence of other factors (-) as per factor symptomatology. Therefore, the type of measures to organize a strategy to maximize the benefits of your organization should be pursued. In addition, based on the support for small organizations, improving the quality of the producer organization should be considered.

• The Journal of Industrial Distribution & Business
• /
• v.2 no.2
• /
• pp.5-14
• /
• 2011

Opening agricultural market expansion, reduced purchases through wholesale markets, expanding the influence large retailers of consumer's market such as changes in the distribution system to the farmer's market conditions are changing rapidly. Because of this, retailers of the scaled and chain-store operations was centered on distribution environmental changes of the consumer market place. In producing area due to changes in market conditions in the agricultural production of in producing area distribution organization and the size distribution can not be put off no longer challenge is imminent. If it do not raise forces banded together, the producer is bound to remain as the weak. To support the distribution of this production was introduced in 2000 enable the Activation Project of in producing area distribution. Recent in producing area Changes of Agricultural conditions in order to cope with the Small-scale farmers and small individual farmers are becoming Scaled and specialized. Also, is specific to each item and regional is showing aspects. Government support for Activation Project of in producing area distribution is greatly improved, but in terms of competitiveness on the market still is showing the limitations. The most common of these problems, the market response if in producing area producer's organization and scale of the problem. Equipped for the purpose of consumer market place responsiveness unreasonable propelled outward from the Painter-sized weakens the organizational power. also, Difficult to succeed organizational size is a dissolution or anything within a few years, farmers around the best producer organizations, such as deviation occurs is exposed to a variety of issues. In this study, previous studies refer to the recent changes in agricultural retail environment, background and needs of organization·scaled, Determine the status of the domestic in producing area organizations and derived Problems, look into Domestic and overseas of in producing area organization with best practices for enhancing the competitiveness of the proposed improvement are intended to. In the future, in producing area distribution policy would like to provide direction to the development. The results of the study showed the follwing : 1) enhance utilization and orrganized through the diversification of the agricultural Collection systems. 2) Scaled to achieve through Items of specialized a wide area marketing. 3) Management operating units, such as installation and operating that overseas the best practices " Comite Economique Agricole Regional 'Fruits et Legumes' de Bretagne". 4) To establish a support system that in producing area distribution organization model development for appropriate domestic. In particular, in case of domestic in producing area distribution organization, through the analysis of various case study that a successful organization and scaled. The process of the various challenges arising in organizational scaled and generalization, and by the way he goes about trying to overcome is required. At the end of the study's limitations and future research directions suggested.