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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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Difference in Chemical Composition of PM2.5 and Investigation of its Causing Factors between 2013 and 2015 in Air Pollution Intensive Monitoring Stations (대기오염집중측정소별 2013~2015년 사이의 PM2.5 화학적 특성 차이 및 유발인자 조사)

  • Yu, Geun Hye;Park, Seung Shik;Ghim, Young Sung;Shin, Hye Jung;Lim, Cheol Soo;Ban, Soo Jin;Yu, Jeong Ah;Kang, Hyun Jung;Seo, Young Kyo;Kang, Kyeong Sik;Jo, Mi Ra;Jung, Sun A;Lee, Min Hee;Hwang, Tae Kyung;Kang, Byung Chul;Kim, Hyo Sun
    • Journal of Korean Society for Atmospheric Environment
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    • v.34 no.1
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    • pp.16-37
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    • 2018
  • In this study, difference in chemical composition of PM2.5 observed between the year 2013 and 2015 at six air quality intensive monitoring stations (Bangryenogdo (BR), Seoul (SL), Daejeon (DJ), Gwangju (GJ), Ulsan (US), and Jeju (JJ)) was investigated and the possible factors causing their difference were also discussed. PM2.5, organic and elemental carbon (OC and EC), and water-soluble ionic species concentrations were observed on a hourly basis in the six stations. The difference in chemical composition by regions was examined based on emissions of gaseous criteria pollutants (CO, SO2, and NO2), meteorological parameters (wind speed, temperature, and relative humidity), and origins and transport pathways of air masses. For the years 2013 and 2014, annual average PM2.5 was in the order of SL (=DJ)>GJ>BR>US>JJ, but the highest concentration in 2015 was found at DJ, following by GJ (=SJ)>BR>US>JJ. Similar patterns were found in SO42, NO3, and NH4+. Lower PM2.5 at SL than at DJ and GJ was resulted from low concentrations of secondary ionic species. Annual average concentrations of OC and EC by regions had no big difference among the years, but their patterns were distinct from the PM2.5, SO42, NO3, and NH4+ concentrations by regions. 4-day air mass backward trajectory calculations indicated that in the event of daily average PM2.5 exceeding the monthly average values, >70% of the air masses reaching the all stations were coming from northeastern Chinese polluted regions, indicating the long-range transportation (LTP) was an important contributor to PM2.5 and its chemical composition at the stations. Lower concentrations of secondary ionic species and PM2.5 at SL in 2015 than those at DJ and GJ sites were due to the decrease in impact by LTP from polluted Chinese regions, rather than the difference in local emissions of criteria gas pollutants (SO2, NO2, and NH3) among the SL, DJ, and GJ sites. The difference in annual average SO42 by regions was resulted from combination of the difference in local SO2 emissions and chemical conversion of SO2 to SO42, and LTP from China. However, the SO42 at the sites were more influenced by LTP than the formation by chemical transformation of locally emitted SO2. The NO3 increase was closely associated with the increase in local emissions of nitrogen oxides at four urban sites except for the BR and JJ, as well as the LTP with a small contribution. Among the meterological parameters (wind speed, temperature, and relative humidity), the ambient temperature was most important factor to control the variation of PM2.5 and its major chemical components concentrations. In other words, as the average temperature increases, the PM2.5, OC, EC, and NO3 concentrations showed a decreasing tendency, especially with a prominent feature in NO3. Results from a case study that examined the PM2.5 and its major chemical data observed between February 19 and March 2, 2014 at the all stations suggest that ambient SO42 and NO3 concentrations are not necessarily proportional to the concentrations of their precursor emissions because the rates at which they form and their gas/particle partitioning may be controlled by factors (e.g., long range transportation) other than the concentration of the precursor gases.