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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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The Aspects of Change of Sijo (시조의 변이 양상)

  • Kang Myeoung-Hye
    • Sijohaknonchong
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    • v.24
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    • pp.5-46
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    • 2006
  • Korean verse has flexibly changed its form and contents according to the historical background of the times. This fact arouses reader sympathy because it has reflected ideas, historical aspects and realities of the times. However, korean verse has kept its own characteristics in some ways, allowing it to exist today. It holds its form as 3 verses of three by three or four meter and three letters of the last of three verses. It makes every different version which has specific aspects of each times in the same 'sijo' area. 'Sijo' in Korean poems, is the first form that has been changed from formal to private functionally. As a result of that common verses in the Goryeo to Joseon eras were going with the stream of the times. Verse was the plate for justice so that there was no double meaning, symbols, or technical sentences. It had to show the idea of Myungchundo Jwonginryun. The theme was commonly fitted within certain areas. such as blessings, fidelity, devotion, etc. Around the end of the Joseon era, there was activation of private verses - a form of sijo with no restrictions on the length of the first two verses. Some ideas had been changed because Sarimpa gained power, domestic conflict, and the introduction of practical science. These things had an effect on the form of Sijo. After all, it shows the ideas of collapsing feudalism, resistance of confucian ideas, equality of the sexes, and opposition to the group who rule the government. Thus Sasul Sijo seems to have the tendency of resistance to reality. It was a specialty of realism poetry It explained our life in detail and reflected real life by being an intermediary of realism. This met and represented the demand of a reader's expectations. After 1905, there was new form of sijo that is very different, in form and content, from the previous versions. It was even different in areas of what people accepted. They started to think sijo was not the form of lyrical verse that is once was. It became a 'record of reading'. The form changed to 'hung or huhung' that satirized the times and the ending of a word in the last verse. Although this form could deliver the tension in statement, it was too iu from the original form. Therefore, it didn't last long, and its position got smaller because of the free verse that had western influence and was emerging in the times. In the middle of 1920, there was a movement of Sijo revival. It was lead by Choinamsun. He wrote poems and Sijo which were effected by western ideas in his early works. Although he worked with that, he took the lead in the movement of Sijo revival. He published the collection of Sijo $\ulcorner$Baekpalbunnwoi$\lrcorner$ that has one major theme-patriotic sentiment. He thought an ancient poem was a part of racial characteristics so that he expressed the main theme which represented the times and situations of his era. Modern Sijo is difficult. Sijo has to have modern and Korean verse characteristics at the same time. If it considers a modern aspect too much, it could not be distinguished from sijo and free verse. If it overly leans toward Sijo. it would seem to be too conservative which it then could be said to have no real charm of a poem. In spite of these problems, it is written constantly, because it has its own specialty. It has been focused on some works because they reflect awareness of modern times, the democratic idea, and realism. Overall, the authors of Modern Sijo express various themes by using different forms. The more what we can guess in this work, Sijo will exist permanently because of its flexibility. Furthermore, one special characteristic-flexibility of the korean verse will make it last forever and it will be a genre in Korean poetry.

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