| Study on Export-oriented Agricultural Industrialization: Analysis of Advanced Countries’ Cases | |||
|---|---|---|---|
| Author | Lee, Sanghyeon | ||
| Views | 50026 | Publication Date | 2017.02.17 |
| Original | |||
|
Background of Research Agricultural exports have positive effects in terms of creating new demand, improving rural household incomes, stabilizing domestic agricultural prices, enhancing quality of domestic agricultural products. As agricultural prices decline and rural household incomes remain in the doldrums by FTAs, Korea is pushing increase in agricultural exports ahead as one of the key policies to seek new solutions for agriculture. Korea has experienced a rapid growth in agricultural exports during the last ten years. However, it is uncertain whether the growth will continue. Korea is currently facing problems such as supply insecurity of agricultural exports, abolition of WTO export subsidies on transport costs, high portion of ethnic Korean consumers in overseas market, high export dependency on certain countries, etc. To maintain growth of Korean agricultural exports, we need to check problems to improve and establish mid-term and long-term goals. This study aims to analyze success models of agricultural exporting countries, draw implications and suggest practical tasks for export-oriented agricultural industralization of Korea in mid-term and long-term. Method of Research First, literatures were reviewed to analyze the need for agricultural export expansion, export trends of Korea’s agriculture, agricultural production and export trends of major exporting countries. Moreover, researches concerning development process of agricultural exports and the key factors in advanced cases were conducted using literature and statistical data. Second, for the advanced cases, the Netherlands, Israel, France and Japan were selected and written interviews, visiting interviews were conducted with experts in agricultural organizations, universities within the countries. In case of Israel, commissioned research to a professor in Hebrew University was carried out. Also, this study examined the background and history of export-oriented agricultural industrialization, difficulties in the process of export-oriented agricultural industrialization and success factors, governmental support etc. Research Results and Implications As a result of analyzing success factors of agricultural exports in the Netherlands, France, Israel and expansion strategy of Japan’s agricultural exports, each country showed different outcomes. The Netherlands was based on knowledge·innovation, marketing boards which conduct various roles such as production, research, exports etc., market expansion through cooperative internationalization. In case of Israel, sustainable research activities such as developing export-oriented products, agricultural environmental technologies, partnership of industry, organization and university, unified distribution system, consumer-oriented marketing, governmental supports were drawn. In France, there were the controlled designation of origin (AOC) system, Label Rouge, quality certification system of organic agriculture certificate (AB) and unique international marketing strategy. Japan was focused on the private sector. In particular, Japan’s strategy in the private sector was including promoting quality differentiation in overseas exhibition, delivering Japanese culture on food, enhancing packages and transportation to maintain quality or local manufacturing, utilizing information on quarantine and food regulations, cooperating with overseas companies. Also, there were Japan’s support policies such as acquiring information on export market, stabilizing distribution, obtaining and maintaining international certifications. Korea can have three directions for export-oriented agricultural industrialization. The first is to develop export-specialized products as well as seeds and produce those products only for exports separating from domestic products. There are “Mae-hyang” which is a type of strawberries and “Shine Muscat” grape developed for exports but these sorts of products need to be expanded to more various products. We suggest a chain of agricultural exports. Research institutes on overseas markets undertake preference analysis on overseas markets above all. Then, technical research centers can develop seeds specialized for exports according to the result of preference analysis. Farmers can produce the seeds developed by technical research centers and provide the agricultural products to exporting companies. These exporting companies will be able to conduct marketing activities in overseas market based on the preference analysis by the overseas marketing research institutes. The second is to foster marketing boards by product, from export specialized complexes and export leading organizations. Supply to export markets can be secured through export specialized complexes as well as export leading organizations and export marketing capability needs to be improved. Through these phases, it is necessary to promote product marketing boards which can manage on the whole. Marketing boards can be operated by product on a national basis. In addition, they need to fulfill a wide range of roles such as markets exploitation, market research, providing market information, promotion, improving distribution environments, investment on R&D for developing and enhancing quality, responses to international issues etc. and strengthen functional independence. Lastly, Korea needs to adopt a suitable national policy project under private and public partnership for export-oriented industralization. A public-private council needs to be established to provide a place for communication among farmers, companies and government and rapidly reflect difficulties of local areas. Moreover, it is necessary to offer an integrated information system on agricultural exports which farmers and companies can easily access. Government and organizations need to provide systematically organized information by country and indirectly support agricultural exports through country promotion and image building, diffusion of food culture, enhancement of export infrastructure which are difficult to solve in the private sector. Researchers: Lee Sanghyeon, Cho Sungju, Chung Daehee, Ahn Soojung, Oh Saera Research Period: 2016. 1. ~ 2016. 10. E-mail address: shlee@krei.re.kr |
|||