• Title/Summary/Keyword: agricultural products distribution

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Main Bodies and Competition Structure of Distribution in Environment-friendly Agricultural Products (친환경농산물 시장의 유통주체와 경쟁구조)

  • Jeong, Eun-Mee
    • Korean Journal of Organic Agriculture
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    • v.15 no.2
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    • pp.151-169
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    • 2007
  • By the environment-friendly(hereafter EF) agricultural policy and toward the safety food of consumers, there is much glowing supply and demand fur EF agricultural products, in Korea. But, in general, EF agricultural products are blown as unique, unreasonable and high price system. This study aims to make clare the main bodies and competition structure in EF agricultural products and the different from the agricultural products. The mail results of this study are summarized as follows. Firstly, farmers and consumers directly participate in the distribution, and the major distributors participate in the market of EF agricultural products after the certification system is got ready. Because EF agricultural products is not dealt and the price system is not built up in agricultural wholesale market. Secondly, the distribution route of EF agricultural products is organized the unified organization by the main bodies such as farmers, consumers co-op, and special distributors. In any step of distribution, the main body of distribution surely deals with the contracted farmers, consumers co-op, and special distributors. Accordingly, it is said that EF agricultural products has the competition structure between the distribution route organized the unified organization rather than between main bodies in the each steps of distribution.

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Analysis of Characteristic and Proportion treated by Distribution Channels for Environment-friendly Agricultural Products (친환경농산물 유통경로별 취급 비중과 특성 분석)

  • Choi, Byung-Ok;Kim, Ho;Lee, Kee-Hyun
    • Korean Journal of Organic Agriculture
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    • v.22 no.1
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    • pp.25-46
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    • 2014
  • Since organized living cooperative associations sold their environment-friendly agricultural products directly to independent consumers in the past, the general distribution channels such as wholesalers had difficulty in handling these products. However, the ratio of distribution via wholesale channel has been gradually increased as consumption of environment-friendly agricultural products has expanded. This study is to address vitalization of wholesale distribution for environment-friendly agricultural products by gathering previous statistical data and analysis. In addition, statistical analysis are conducted by utilizing surveys on forwarders, consumers for environment-friendly agricultural products. As a result, the products producers ship are distributed through dealers at producers sites, producers cooperatives, or food process companies, food companies, internet shopping malls, large-scale distribution companies, consumer groups such as living cooperative associations, direct outlets at consumers sites, or exports. Among the channels, the large-scale distribution companies and franchised special shops account for 47%, the general supermarkets 15.7%, and living cooperative associations 14.6% respectively. By utilizing the research results on producers and consumers, and the distribution weight by channels for environment-friendly agricultural products, the distribution channels for living cooperative associations, wholesale markets, and large scale distribution companies are compared and evaluated. As a result, the level of producers' and consumers' satisfaction for them is the lowest since the low selling price for producers and high distribution margins.

A Study on KAN Code ID for Promoting Distribution Information or Agricultural Products (농산물 유통 정보화 촉진을 위한 KAN코드 사용 확대에 관한 연구)

  • Ahn, Seung-Yong;Kang, Kyung-Sik
    • Journal of the Korea Safety Management & Science
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    • v.8 no.5
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    • pp.99-117
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    • 2006
  • Consumers keep demanding for diversified high quality products, valuable services and safety. With this in mind, Distribution Industry is being updated rapidly to accomodate this demand. Meanwhile, Distribution Information Technology of agricultural products has been in slow progress with little in-depth studies. In this study, it has been analyzed the usage of Bar code which is the key element for agricultural Distribution Information Technology. The analysis was conducted through a survey utilizing questionnaire covering 5 Hypermarkets(Super-centers) including big 3 companies. Also, Japanese market trends have been studied to visit a Japan Government Organization concerned, GS1 Japan, an Agricultural Cooperative, an Agricultural Wholesale Market, and a Retail Company. If we could use KAN code for all agricultural products, we could collect and analyze the information of price and trade quantity of them. It opens a new era to understand the agricultural products supply and demand easily. This will certainly make a great contribution to the evolution of agricultural products distribution. From this research, it is suggested that collective efforts by suppliers, wholesalers, retailers and Government Officers are needed to make large scale mutual marketing Organizations, which specialize in sending out agricultural products. The Organization is recommended to standardize and pack every final agricultural products, to promote the use of KAN code.

Receipt Area and Regional Types of Delivery in Agricultural Products Physical Distribution Center : A Case Study on Agricultural Products Physical Distribution Center of Cheongju Agricultural Co-operation (농산물 물류센터의 입하지와 배송의 지역유형 - 농협 청주 농산물 물류센터를 사례로 -)

  • 김선희;한주성
    • Journal of the Korean Geographical Society
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    • v.38 no.1
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    • pp.104-126
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    • 2003
  • This study found that was done to find the commercial and physical distribution system of the agricultural physical distribution center of the agricultural co-operation and considers the receipt region of agricultural, livestock and marine products of the agricultural physical distribution center established for the efficiency and integration of physical distribution by season. And this study clarified the relationship between regional characteristics and regional types of distribution in accordance with the sales of each product. According to the research, the agricultural physical distribution center of Cheongju agricultural co-operation receives agricultural, livestock and marine products from all over the country as the core region in Chungcheongbuk-do and deliveries mainly to some regions in Chungcheongbuk-do, Chungcheongnam-do and Daejeon city. That's e agricultural, livestock and marine products that the agricultural physical distribution center of the agricultural co-operation deals with the required freshness. Therefore, the physical distribution center forms the regional physical distribution system to mainly receive products from the regions where are relatively near the center and to delivery to the nearby region. This delivery of agricultural, livestock and marine product significantly influences the sales strategy as well as the economic principles of demand and supply.

A Study on the Reduction of Import and Export Distribution Costs for Agricultural Products by Creating a Compound Logistics Complex (복합물류단지 조성에 따른 농산물 수출입 물류비용 절감에 관한 연구)

  • Kim, Byeong Chan
    • Journal of Korea Society of Digital Industry and Information Management
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    • v.10 no.3
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    • pp.273-283
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    • 2014
  • Imported and exported agricultural products are facing a very difficult time due to the rising distribution costs spurred by the increasing labor and oil prices. High empty transfer rates, which take place on a return route after the regular transportation of imported and exported agricultural products, are especially a major cause of the rising distribution costs. In an effort to overcome those limitations, this study set out to examine the transportation stages connecting harbor warehouses, processing plants, and central distribution centers on the circulation route of such imported grains as wheat, barley, corn, and soybean and the transportation route from the warehouses devoted to exported agricultural products to harbors for such exported agricultural products as apple, pear, and persimmon in order to develop a model on the creation of a compound logistics complex for processing plants and transshipment of imported and exported agricultural products. The study also promoted the logistic rationalization of imported and exported agricultural products by creating a compound logistics complex that would combine processing plants for imported agricultural products and transshipment functions for exported agricultural products.

A Study on Win-Win Cooperation between Agriculture and Corporations: Focusing on Distribution Cooperation (농업-기업 간 상생협력 구축 전략에 대한 연구: 유통협력형을 중심으로)

  • Park, Seong-Jin;Heo, Seong-Yoon;Choi, Jong-Woo
    • Journal of Distribution Science
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    • v.14 no.10
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    • pp.137-146
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    • 2016
  • Purpose - Korean agriculture is facing internal and external environmental changes and the need for secure stable outlets. Active participation and mutually beneficial cooperation between enterprises and agricultural is necessary for a win-win situation. This study investigates the case for distribution cooperation and a cooperative system. To respond to the diverse needs of consumers and market reclamation, there is a need to analyze and categorize distribution cooperation. Research design, data, and methodology - A literature study, relevant interviews with enterprises, and meetings with local government practices were conducted. A survey frame was derived through the participation of agricultural enterprises and distribution cooperation models were categorized identifying win-win cooperation and best practices. It was organized on the basis of six best practice examples of distribution cooperation between industry and agricultural sectors, divided into three types: opening distribution channels, exporting cooperation, and developing new products. Results - An innovation management system that can adapt to environmental changes and problems of agriculture is necessary. A company has to supply high-quality agricultural products reliably to meet the preferences of consumers by introducing products that promote domestic market differentiation. In addition, consumers are choosing a variety of products that may include not only high quality products but also local products and safe products. The main areas of cooperation are the direct provision of agrifood raw materials to consumers. Next, would be to help agricultural sectors distribute and pioneer international markets. The ideal step for distribution cooperation is the joint investment in new products by business and agriculture. Conclusions - Agriculture and win-win cooperation with enterprises is in an early stage of social contribution. To implement a distribution cooperation model between business and agricultural sectors, it is crucial to establish a structured support system including joint councils. Additional requirements include strengthening agricultural capacities, creating a legal basis for provision, and producing a win-win cooperation environment. The promotion of win-win cooperation and agricultural enterprises needs to exist in various forms in order to establish a different type of incentive system.

A Study on the Marketing Strategy of Environment-friendly Agricultural Products (친환경.유기농산물 생산.유통.소비시장 현황 분석 -가격경쟁력 제고 방안을 중심으로-)

  • Hwang, Jae-Hyun
    • Korean Journal of Organic Agriculture
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    • v.17 no.3
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    • pp.327-345
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    • 2009
  • Environment-friendly agricultural products market has been experiencing various change through the quantitative growth in Korea. The food safety is considered seriously and the interest of the consumer is increasing about environment-friendly agricultural products and organic agricultural products. Environment-friendly agricultural products is encouraged in the link of the counter-measure which follows in the market opening. This research aims at making shorter the distance between the productive person and the consumer and to improve the income for organic farm and the price competitiveness for Environment-friendly agricultural products through the present condition analysis for organic produce's production, distribution and consumption market. To solve the problems above, the development of strategies for the establishment of distribution system for the organic produce's stable supply and the improvement of price competitiveness, the establishment of the cooperating system on the produce's demand and supply, the improvement of consumer's reliability by reinforcement with connectivity and transparency of the process, and the vitalization of regional economy and the exchange of rural and city area are needed.

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Effects of Selection Criteria for Eco-Friendly Agricultural Products on Purchase Intention (친환경농산물 선택기준이 구매의도에 미치는 영향 : 소비자 태도와 신뢰의 매개, 조절효과를 중심으로)

  • Kim, Mi-Song;Kim, Dong-Hwan;Lee, Gi-Hwang;Youn, Myoung-Kil
    • Journal of Distribution Science
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    • v.11 no.12
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    • pp.71-81
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    • 2013
  • Purpose - This study investigated the effects of consumers' selection criteria for environment-friendly agricultural products on purchase intention and the effects of consumers' attitudes and the reliability of environment-friendly agricultural products on purchase intention by using the theory of planned behavior. Subjective norms of variables of behavioral intention, attitudes toward behavior and control of the behavior were used to create selection criteria, consumers' attitudes and reliability of environment-friendly agricultural products. The study investigated the effects of consumers' selection criteria, attitudes, and reliability of environment-friendly agricultural products on purchase intention constructing models and hypotheses of mediation and moderation between selection criteria for agricultural products and purchase intention by consumers' attitudes and reliability. Research design, data, and methodology - The findings were as follows: first, consumers' selection criteria for environment-friendly agricultural products had a significantly affirmative influence upon purchase intention. Health was the most important factor of selection criteria convenience was more important than quality and familiarity was next. Consumers' attitudes and trust had a significant influence on purchase intention. Second, testing showed that consumers' attitude and trust partially mediated selection criteria: sub-factors and purchase intention were important in selection criteria. Third, testing showed that consumers' attitude and trust had a significant moderation effect between selection criteria and purchase intention. In the test of the moderation effect between sub-factors of selection criteria and purchase intention, consumers' attitude had a significantly positive influence upon health, convenience, and familiarity, and had no significant influence upon quality and purchase intention. Consumers' trust had no significant influence upon health, convenience, and quality. Results - The study provided several theoretical implications: first, an empirical analysis was undertaken with selection criteria for environmental-friendly agricultural products, consumers' attitude, and trust to investigate subjective norms, attitude toward behavior and control of behavior based on the theory of planned behavior. Second, this study investigated both the mediation effect and moderation effect of consumers' subjective norms on attitudes toward behavior, the mediating effects of perceived behavior control and changes of behavioral intention depending upon size and direction of the variables. This study also provided several practical implications. Conclusions - First, consumption of environment-friendly agricultural products did not increase despite rapid increase of production therefore, promotion of consumption and distribution was needed considering the supply and demand of the products. Second, definite standards for selection criteria were suggested to build up consumers' attitude and trust. Consumers' attitude could be improved by factors including the brand of environment-friendly agricultural products, consistent quality, solving physiological problems caused by adverse effects of environmental problems, supplementary approaches, treatment of adverse effects by eating food, and the development and supply of products in accordance with changes of lifestyle. Finally, consumers' demand for sub-factors of selection criteria could be much higher than health, convenience, and quality of the products. Therefore, a process was needed that could continuously check consumers' needs for the products. Limitations were described at the end of the study.

Effects on the Consumer Buying Behavior of an Agricultural Brand in South Korea

  • Kim, Pan-Jin;Kim, Mi-Song;Kim, Wanki;Mehyaoui, Ouafaa;Youn, Myoung-Kil
    • The Journal of Industrial Distribution & Business
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    • v.5 no.2
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    • pp.21-28
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    • 2014
  • Purpose - This study aims to understand the brand marketing of agricultural products and redefine their status in South Korea by analyzing impacts on consumer buying behaviors. Research design, data, and methodology - Products, with independent variables, were divided into agricultural brand products and generic products. Dependent variables were limited to expanding sales of a specialty brand through consumer awareness, consumer buying behavior, and confidence in agricultural products' quality. Control variables were based on characteristics of products such as freshness, safety, quality, and their category. Moderating effects were examined on consumer characteristics, including income levels and age. Results - Consumers increasingly purchased agricultural brand products rather than generic agricultural products because of the general reliability of quality assurance. Conclusions - Large agricultural specialty stores have enhanced the perceptions of quality assurance, freshness, safety, and diversity. Through a critical analysis of the domestic consumer income levels and age, gender, and demographic factors, such as agricultural consumer buying behavior not affecting consumers' health and life, this study proposes positive changes in quality perception.

A study on the improvement of distribution system by overseas agricultural investment (해외농업투자에 따른 유통체계 개선방안에 관한 연구)

  • Sun, Il-Suck;Lee, Dong-Ok
    • Journal of Distribution Science
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    • v.8 no.3
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    • pp.17-26
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    • 2010
  • Recently concerns have been raised due to the unbalanced supply of crops: the price of crops has been unstable and at one point the price went up so high that the word Agflation(agriculture+ inflation) was coined. Korea, in particular, is a small-sized country and needs to secure the stable supply of crops by investing in the produce importation at a national level. Investment in foreign produce importation is becoming more important as a measure for sufficient supply of crops, limited supply of domestic crops, weakened farming conditions worldwide, as well as recent changes in the use of crops due to the development of bio-fuels, influence of carbon emission on crops, the price increase in crops, and influx of foreign hot money. However, there are many problems with investing in foreign produce importation: lack of support from the government; lack of farming information and technology; difficulty in securing the capital; no immediate pay-off from the investment and insufficient management. Although foreign produce is originally more price-competitive than domestic produce, it loses its competiveness in the process of importation (due to high tariffs) and poor distribution system, which makes it difficult to sell in Korea. Therefore, investment in foreign produce importation is being questioned for feasibility; to make it possible, foreign produce must maintain the price-competitiveness. Especially, harvest of agricultural products depends on natural and geographical conditions of each country and those products have indigenous properties, so distribution system according to import and export of agricultural products should be treated more carefully than that of other industries. Distribution costs are differentiated into each item and include cost of sorting and wrapping, cost of wrapping materials, cost of domestic transport, cost of international transport and cost of clearing customs for import and export. So transporting and storing agricultural products generates considerable costs compared with other products. Also, due to upgrade of dietary life, needs for stability, taste and visible quality toward food including agricultural products are being raised and wrong way of storage causes decomposition of food and loss of freshness, making the storage more difficult than that in room temperature, so storage and transport in distribution of agricultural products needs specialty. In addition, because lack of specialty in distribution and circulation such as storage and wrapping does not solve limit factors in distance, the distribution and circulation has been limited to a form of import and export within short-distant region. Therefore, need for distribution out-sourcing which can satisfy specialty in managing distribution and circulation and it is needed to establish more effective distribution system. However, existing distribution system of agricultural products is exposed to various problems including problems in distribution channel, making distribution and strategy for distribution and those problems are as follows. First, in case of investment in overseas agricultural industry, stable supply of the products is difficult because areas of production are dispersed widely and influenced by outer factors due to including overseas distribution channels. Also, at the aspect of quality, standardization of products is difficult, distribution system is quite complicated and unreasonable due to long distribution channels according to international trade and financial and institutional support is not enough. Especially, there are quite a lot of ineffective factors including multi level distribution process, dramatic gap between production cost and customer's cost, lack of physical distribution facilities and difficulties in storage and transport due to lack of wrapping containers. Besides, because import and export of agricultural products has been manages under the company's own distribution according to transaction contract between manufacturers and exporting company, efficiency is low due to excessive investment in fixed costs and lack of specialty in dealing with agricultural products causes fall of value of products, showing the limit to lose price-competitiveness. Especially, because lack of specialty in distribution and circulation such as storage and wrapping does not solve limit factors in distance, the distribution and circulation has been limited to a form of import and export within short-distant region. Therefore, need for distribution out-sourcing which can satisfy specialty in managing distribution and circulation and it is needed to establish more effective distribution system. Second, among tangible and intangible services which promote the efficiency of the whole distribution, a function building distribution environment which includes distribution information, system for standard and inspection, distribution finance, system for diversification of risks, education and training, distribution administration and tax system is wanted. In general, such a function building distribution environment is difficult to be changed and supplement innovatively because its effect compared with investment does not appear immediately despite of its necessity. Especially, in case of distribution of agricultural products, as a function of collecting and distributing is performed individually through various channels, the importance of distribution information and standardization is getting more focus due to the problem of repetition of work and lack of specialty. Also, efficient management of distribution is quite difficult due to lack of professionals in distribution, so support to professional education is needed. Third, though effort to keep self-sufficiency ratio of staple food, rice is regarded as important at the government level, level of dependency on overseas of others crops is high. Therefore, plan for stable securing food resources aside from staple food is also necessary. Especially, governmental organizations of agricultural products distribution in Korea are production-centered and have unreasonable structure whose function at the aspect of distribution and consumption is quite insufficient. And development of new distribution channels which can deal with changes in distribution environment and they do not achieve actual results of strategy for distribution due to non-positive strategy for price distribution. That is, it implies the possibility that base for supply will become vulnerable because it does not mediate appropriate interests on total distribution channels such as manufacturers, wholesale dealers and vendors by emphasizing consumer protection excessively in the distribution of agricultural products. Therefore, this study examined fundamental concept and actual situation for our investment to overseas agriculture, drew necessities, considerations, problems, etc. of overseas agricultural investment and suggested improvements at the level of distribution for price competitiveness of agricultural products cultivated in overseas under five aspects; government's indirect support, distribution's modernization and distribution information function's strengthening, government's political support for distribution facility, transportation route, load and unloading works' improvement, price competitiveness' securing, professional manpower's cultivation by education and training, etc. Here are some suggestions for foreign produce importation. First, the government should conduct a survey on the current distribution channels and analyze the situation to establish a measure for long-term development plans. By providing each agricultural area with a guideline for planning appropriate production of crops, the government can help farmers be ready for importation, and prevent them from producing same crops all at the same time. Government can sign an MOU with the foreign government and promote the importation so that the development of agricultural resources can be stable and steady. Second, the government can establish a strategy for an effective distribution system by providing farmers and agriculture-related workers with the distribution information such as price, production, demand, market structure and location, feature of each crop, and etc. In order for such distribution system to become feasible, the government needs to reconstruct the current distribution system, designate a public organization for providing distribution information and set the criteria for level of produce quality, trade units, and package units. Third, the government should provide financial support and a policy to seek an efficient distribution channel for foreign produce to be delivered fresh: the government should expand distribution facilities (for selecting, packaging, storing, and processing) and transportation vehicles while modernizing old facilities. There should be another policy to improve the efficiency of unloading, and to lower the cost of distribution. Fourth, it is necessary to enact a new law covering exceptional cases for importing produce in order to maintain the price competitiveness; currently the high tariffs is keeping the imported produce from being distributed domestically. However, the new adjustment should be made carefully within the WTO regulations since it can create a problem from giving preferential tariffs. The government can also simplify the distribution channels in order to reduce the cost in the distribution process. Fifth, the government should educate distributors to raise the efficiency and to modernize the distribution system. It is necessary to develop human resources by educating people regarding the foreign agricultural environment, the produce quality, management skills, and by introducing some successful cases in advanced countries.

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