SECURED GROWTH ENGINE THROUGH DIGITALIZATION OF OVERALL AGRICULTURE
1. Related Current Situation
(Smart Agriculture) Prepared an expansion basis of smart agriculture such as the creation of an Innovation Valley (‘18~) and the initiation (’20~) of an empirical study on a bare ground smart farm
Fostered young manpower for smart farm by producing the first graduates from the training center inside the Innovation Valley*(June ‘20, 45 people) and expanding new selection (’19: 104 people → ‘20: 208) * Performance of introducing young manpower to the field of agriculture such as among 45 people, 38 people ventured agriculture and 4 people began working in agricultural corporation ⇨ Proceeded a full-scale operation of the Innovation Valley after the construction for creating 4 places had been finished in order within the year.
(Online Distribution) Confirmed* the possibility of an innovative untact distribution of agricultural products through the demonstrative promotion of online wholesale transaction for onions (‘20.5~) and garlic (’20.8~).
* Quantity of online transaction of onions and garlic was in third or fourth level in comparison to the quantity of 32 wholesale markets.
Through the introduction of a method of online wholesale transaction, expect the increased welfare of producers and consumers such as the improvement of the efficient distribution and the expansion of the selection right for shipping * (Shipper) Receiving price of onion increased to 77 won/kg, (Consumer) purchasing price reduced to 62 won (estimated) ⇨ Tasks to supplement are lack of participation in transaction by diverse subjects, burden of logistics cost at small-scale transaction, and lack of direct benefit by farmhouses
(Online Exportation) Expand the untact export support such as online consultation and market pioneering and promptly counteract against the environmental change of exportation and distribution due to COVID-19 ⇨ Necessary to improve the exportation structure of agricultural foods which highly rely on the exportation through offline stores with a low proportion* of direct exportation while avoiding brokers. * As of 2019, there were 10 agricultural food companies of online direct exportation. (0.05% among 1,931 aT registered export companies)
2. Promotion Plan
◇ (Goal) Accelerate the digital conversion in the entire fields of agricultural foods such as production, distribution and exportation to secure the growth engine of agriculture in the post COVID-19 era
① Expand the smart agriculture through the timely completion and operation of the smart farm innovation valley, the full-scale fostering of farming by young men, the development of technology, and the promotion of data collection and utilization.
② Promote the digital innovation of the distribution of agricultural products such as the activation of an online wholesale transaction and the preparation of an improvement measure for logistics system
③ Strengthen the support of exporting agricultural foods through overseas local online distribution platform
(Smart Agriculture) Support the industrial ecosystem of smart farm such as the establishment of an operation system for 4 innovation valleys (~April, Sangju·Gimjae) and the support of its activation*, and the exportation of data * Enactment of laws in regard to manpower fostering, big data, governance, and standardization of smart agriculture (December)
(Innovation Valley) Utilize the training center, rental greenhouses, and empirical complex inside the innovation valley to nurture young farmers in full scale (July~), and support the advancement of smart farm technology - Reinforce the support for startups by providing young farmers, including those who graduated from the training centers, with a rental greenhouses in the innovation valley, and expanding the support limit of reserved agricultural lands (1ha → 2ha) - Promote smart farm R&D projects* in the empirical complex to increase the productivity by of the smart farms and advance AI-based automation technology in AI base unmanned automation * Inter-ministerial cooperative stud to develop original and next generation technologies in the smart farm sector.(‘21~’27, 386.7 billion won)
(Data) Enhance data utilization by establishing a Cloud-based data platform (July) and holding Smart Farm AI Competition (October)
(Export) Promote the creation of overseas demonstrative greenhouses (Kazakhstan, Vietnam) and smart farm ODA projects (ODA, Cambodia, Indonesia, Vietnam, Philippines) and support the contactless export of agricultural equipment and materials
(Innovation of Digital Distribution) Prepare a basis for the online transaction to settle as a new alternative for innovative distribution
(Activatied Transaction) Activate the transaction by inducing large-scale storage and processing companies, and Kimchi factories to participate, and diversifying transaction methods (reverse auction, reserved purchase, etc) (January~) * Promote the introduction of online transaction methods, as a pilot project, for horticultural (‘21~), and livestock products (‘22~) etc.
(Efficient Logistics) Prepare a measure to improve the logistics system through the analysis on the current status of logistics facilities of local producers, and on the items and quantity of online transaction (June)
(Supported Farmhouses) Reinforce the support for farmhouses by establishing an online demonstration model (Study service, ~May) for the items whose producers face difficulties in accessing joint market (Native Namdo garlic, etc).
(Online Export) Other than current support such as promotion and marketing, additional support is provided by helping companies to enter a giant online distribution platform and constantly operating a contactless export platform
Expand* the presence of 'Korean Foods Hall' global giant online mall in promising markets, such as China and new southern regions, and foster** 100 agricultural and food companies capable of direct online export * (’20) China (T-Mall) → (‘21) 5 sites (Fresh Hippo of China, Southeast Asia Shopee, etc) ** Support logistics for the direct export of small quantity of multiple items and reinforce the competency of online & mobile marketing
In preparation for prolonged contactless export, establish an online transaction (B2B) platform which enables the provision of product information, the inquiry of transaction conditions, and the request of quotation
3. Expected Effect
Expect ① the expansion of new growth engine through the spread of smart agriculture, ②the promotion of contactless distribution innovation for agricultural and livestock products, and ③ the continuous growing trend of the export of agro-food