1. Study Objectives and Method
■ Research purpose
○ This study aims to analyze the overall actual operational conditions of local wholesale markets within the province, and come up with the direction and strategies for innovative agricultural product distribution in response to evolving distribution environments and government policies.
■ Research methodology
○ Literature reviews and analyses were carried out for academic studies, reports, laws, and policy data related to agricultural wholesale markets to identify and understand concepts, functions, important policies, and discussions.
○ Using the annual statistics report, the current states of distribution at local agricultural wholesale markets nationwide and in each province were comparatively analyzed. Furthermore, market efficiency was assessed through a causality analysis of wholesale markets and major base markets within provinces.
○ Major stakeholders were interviewed to further examine in detail the actual operational conditions and perceptions for three in-province local wholesale markets. A case study was conducted with an expert advisory meeting to develop a response plan that would stimulate agricultural product distribution innovation and market operations. Gaining momentum and setting direction for promoting the Special Tourist Zone: We aim to gain momentum for the continuous promotion of the Special Tourist Zone by preemptively preparing for the increase of domestic and foreign tourists in the post-pandemic era and establishing a long-term plan.
2. Conclusion and Policy Suggestion
■ Response direction for agricultural product distribution innovation at local wholesale markets
○ In response to changes in the agricultural products distribution structure and government policies, the functions of wholesale markets should be reorganized, including the securing of logistics infrastructure to strengthen agricultural product distribution capacity and building of O2O bases to stimulate online transactions.
○ By linking production and consumption regions, establish an efficient agricultural product collection and supply system at the Jeollabuk-do. Additionally, the commercialization capacity of those products should be strengthened based on safety and quality management expertise.
○ The public nature of wholesale markets should be reinforced, and their autonomous operational capabilities should be secured by continuously improving their capacities.
■ Strategies to establish a logistics base for innovative agricultural product distribution
○ In order to respond to the online market, it is necessary to establish an O2O-based fresh chain logistics system linked with the Jeollabuk-do agricultural products online transaction system.
○ A strategy to dominate online trade/auction and serve as a key distribution base for agricultural products from South Korea’s southwestern region in response to the government’s plan for nationwide expansion of online trade for agricultural products.
○ Prepare a differentiated method of rapidly supplying fresh agricultural products harvested on the same day within the region by developing a direct delivery logistic system linking local wholesale markets and local small business owners.
■ Strategies to foster local producer-linked specialized markets
○ Prepare a system to comprehensively support independent brand development and marketing activities of wholesale market corporations as a strategy for differentiating and raising the value of locally grown agricultural products supplied to wholesale markets.
○ Prepare a win-win plan by establishing a system specializing in the trade of off-grade products selected by producing organizations. Those products are taken in by local wholesale markets and traded with local businesses.
○ Support the development of a system that can stably supply locally grown raw agricultural goods to agri-food companies in the province by improving the mass collection and distribution functions of wholesale markets.
■ Strategies to strengthen the agricultural product distribution capacity of wholesale markets
○ Promote facility modernization projects to address operational inefficiencies, rising maintenance costs, and safety problems caused by outdated wholesale markets, and to bridge the gap in the logistics and distribution infrastructure for agricultural products.
○ Improve information sharing and trade efficiency by implementing a standard rating system (selected by authorized auctioneers in Jeollabuk-do Province) for agricultural products traded at wholesale markets.
○ Prepare a plan to develop and implement programs that encourage the establishment of new businesses and the inflow of new personnel in response to the aging of and decrease in the number of middlemen in charge of agricultural product distribution.
