Background of Research
Production and consumption of environment-friendly agricultural products have been rapidly increasing as consumers’ keen interest in safety of agricultural products has risen. 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.
In order to contribute to continuous production and consumption expansion, the handling system for environment-friendly agricultural products in the wholesale markets shall be reorganized.

Methods of Research
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 and quantitative analysis are conducted by utilizing surveys on forwarders, wholesale corporations, intermediate wholesalers, and consumers for environment-friendly agricultural products.
In the second chapter, the current situation of distribution channels and relevant policies for environment-friendly agricultural products are analyzed by utilizing previous statistics, advanced researches, information on prices, and information on investigation of producers and consumers. In the third and fourth chapters, wholesale market related statistics and interviews and surveys are utilized to identify current situation and issues of wholesale distribution for environment-friendly agricultural products in the central and rural wholesale markets. In the fifth chapter, investigation on producers and consumers, previous best practices, interviews with distribution companies were used to propose activation measures of wholesale distribution for environment-friendly agricultural products, and relevant political measures.

Research results and implications
Firstly, the relative weight for each distribution channel is researched to identify current situation of distribution for environment-friendly agricultural products. As a result, the products producers ship are distributed through dealers at producers sites, producers cooperatives, or food processing 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, even though the weight of wholesale market’s handling the products has been dramatically increased, the level of producers’ and consumers’ satisfaction with them is the lowest due to the low selling price for producers and high distribution margins.
Next, as a result of identifying current situation of wholesale market’s handling environment-friendly agricultural products, the issues for the markets can be classified into followings; main agents of shipping, handling system and facilities in wholesale markets, and safety.
Therefore, the measures for vitalizing wholesale distribution of environment-friendly agricultural products shall be continuously promoted in the short and mid/long term under the following fundamental principles. First, wholesale markets need to diversify locations of consumers sites. Second, the safety system that producing sites, wholesale markets, and consumers sites are properly associated needs to be established. Third, the trading system needs to be diversified in order to establish the measures for vitalizing wholesale distribution of environment-friendly agricultural products while environment-friendly agricultural products specialized companies and intermediate dealers shall be promoted. Handling environment-friendly agricultural products in wholesale markets shall reflect the characteristics of the products and changes in distribution environment to contribute to vitalized trading of the products.
Based on the foregoing analysis, the government shall promote to vitalize wholesale distribution for environment-friendly agricultural products in wholesale markets reflecting the characteristics of their production and distribution, and improving the distribution structure as well. In the short term, the consumer trust on the products shall be secured by primarily establishing safety system in the circle of distribution for producers and wholesale markets. In the mid/long term, the shipment to living cooperative associations and large-scale distribution companies shall be effectively made by establishing a shipment system for environment-friendly agricultural products being centered by APC. In the mean time, specialized spaces for environment-friendly agricultural products in wholesale markets need to be secured as per the schedule of facility modernization business while environment-friendly agricultural products specialized companies and intermediate dealers need to be promoted.


Researchers: Byung-ok Choi, Byeong-Ryul Kim, Kee-Hyun Lee
Research Period: 2013. 1∼2013. 12
E-mail address: bochoi@krei.re.kr