Research Reports
Strategies for Enhancing Competitiveness of Regional Agricultural Products under Free Trade Agreements
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AuthorKim, Byoungryul
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Publication Date2013.02.28
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Original
The purpose of this study is to identify the factors that can contribute to making domestic products more competitive compared to imported products and to present detailed measures that can maximize the competitiveness improvement with respect to product, production, management, distribution, and government policy.
For this purpose, Kim Byung-Ryul et al. (2009) conducted a collaborative research with eight local research institutes around the country. The factors that determine agricultural competitiveness were classified into four factors (product, production/management, marketing, and government policy) based on the concept of agricultural competitiveness and one product from each province was selected to analyze the competitiveness factors.
The major research findings of this study show that product competitiveness can be improved through different means for different products: brand development for sweet persimmons of Gyeongnam, apples of Gyeongbuk, and potatoes of Gangwon; development of high-quality seed bulbs and improvement of product marketability for garlic from Jeonnam; and expansion of farmers' participation in branding and continuous management of husbandry practices for Hanwoo, the Korean cattle, from Jeonnam.
As for the methods of improving the competitiveness with respect to production and management, it is evaluated that the following measures are urgently needed: seed bulb improvement for production of high-quality garlic, expansion of bulbil cultivation, and mechanization in the case of garlic from Jeonnam, and organization of farmers and mechanization in the case of potatoes of Gangwon; in the case of persimmons of Gyeongnam, it is necessary to switch old persimmon trees with the short Korean variety persimmon trees; in the case of grapes of Chungbuk, it is necessary to scale up producer organization units and expand facility cultivation; and in the case of Jeju mandarin, it is necessary to build up a year-round batch production system.
As for ways of improving distribution and processing, it is suggested that a mobile APC (Agricultural Products Processing Center) should be established for potatoes of Gangwon. In the case of garlic produced in Jeonnam, it is necessary to improve distribution by fostering joint co-operative enterprises. In the case of apples produced in Gyeongbuk, there is a need to build an export complex, whereas, in the case of grapes produced in Chungbuk, there is a need to expand contract cultivation in link with the local distribution network and the food industry. In the case of Jeju mandarins, it is necessary to build mandarin industry clusters. In the case of persimmons of Gyeongnam, it is important to develop an overseas marketing strategy, whereas, in the case of the Korean cattle, Hanwoo, in Jeonbuk, there is a need to integrate the distribution system from butchering to processing and retailing and seek mergers and acquisitions of slaughterhouses. In the case of ginseng from Chungnam, there is a need to build an advanced distribution system for efficient distribution and transparent and fair transactions, expand the domestic market based on consumer trust and product safety, attract various consumers, and make inroads into overseas markets by publicizing the Korean ginseng.
Finally, the following policy tasks can be assigned to maximize the factors that can contribute to competitiveness improvement: in the case of garlic from Jeonnam, implementation of a stock-up system in consideration of varying production amount of different varieties, stimulation of wholesale transactions, introduction of garlic processing center (GPC), and implementation of a government subsidy program that provides different support for different types of garlic cultivated (i.e., frigid-winter type and warm-winter type); in the case of apples from Gyeongbuk, introduction of a self-certification system for eco-friendly apples and an exclusive apple subsidy is necessary and short apple trees should be disseminated and export market-specific complexes should be built; in the case of Jeju mandarin, legal and institutional improvements, such as tightening of quarantine to cope with free customs in the future, introduction of agricultural attaches for the citrus fruit, establishment of a competitiveness improvement fund, and legislation to protect the Jeju mandarin industry, are necessary; in the case of ginseng from Chungnam, it is necessary to conduct organizational and institutional examination for construction of ginseng industry clusters.
Researchers: Byoung-Ryul Kim, Sang-Hyen Chai
Research period: 2012. 9. - 2013. 2.
E-mail address: brkim@krei.re.kr
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