Background of Research
This study shows that Local Food contributes to creating jobs for small and medium-scale farmers, elderly farmers, and female farmers. Additionally, Local Food boosts farmers’ confidence by restoring crop seeds native to Korea and traditional tastes, improves food self-sufficiency rates, and enhances vitality in agriculture and rural areas although the concept of Local Food is based on selling agricultural products. It is necessary to examine the effect of Local Food on local development projects and economy in addition to the virtuous cycle of local economy by Local Food. Support of the Local Food program requires strategies and policies that provide substantial benefits for Local Food projects, focusing on construction of infrastructure to publicize local identity based on each local government.

Method of Research
Both case studies and surveys were conducted to examine the current state of Local Food. Surveys by interview and meeting with experts were conducted with 24 direct sales stores of Local Food to examine their operations and difficulties. A survey by interview was also conducted with Sister’s Garden, which is a kkureomi business and three school catering service providers operated by local governments.
Our survey focused on direct sales stores to examine current operation, production and consumption of Local Food. An online survey was conducted with 61 of 117 local direct sales store owners. Interviews were conducted with two stores of each type in three direct sales store types for producers marketing their products and consumers.
The results of the surveys were used to examine the effect of Local Food on the local economy, including the ratio of producers’ management scale for each direct sales store, annual agricultural sales based on the producer survey, Local Food marketing ratio, changes in the market to sell the products, and income increase to calculate direct effects.

Result and Implication
Local Food aims to create a virtuous cycle structure for the local economy to return the profits from Local Food bought by consumers to local producers.
The direct effects of Local Food include contributions to the virtuous cycle of the local economy by increasing producers’ income and consumption corresponding to the increased income in the relevant local community by creating new jobs related to Local Food.
Because direct sales stores of Local Food are based on the relevant region, those close to large cities have economic effects of 1 billion 30 million won; those close to medium and small cities have 740 million won; and those in rural areas have 470 million won per annum for the local economy.
Exemplary indirect effects of Local Food include the effect based on relation to the community, for example, opportunities for meeting, exchange, understanding and interest between producers, consumers and local governments. While producers control prices and supply, and boost their confidence and self-esteem as a farmer, consumers can buy locally produced fresh foods by paying minimum costs for them. The food policy of local governments divided into agriculture and foods implements complementary cooperation with and connectivity to Local Food, and enhances exchange of local people to have a positive effect on sustainability, dynamics and flexibility of local agriculture.
The idea and scope of ‘locality’ is a new relationship seeking sustainable values of agriculture, and a process of helping to shape the identity of the relevant region. Therefore, a promotion strategy is required to form a relationship and smooth communication for higher sustainability of Local Food business, focusing on construction of infrastructure to let people know the identity of the region.
Local Food is the cream of local agriculture with a chain of production-processing-distribution-selling-consumption of local agriculture. Therefore, the nature of Local Food embraces rural development including local food culture, production diversity, processing and logistics infrastructure. However, while this study covers just the contents of building local distribution channels and restructuring local agriculture, it is essential to facilitate the following political tasks to enhance cohesion of production and consumption in local agriculture.
These tasks are as follows: first, strengthen producer’s organization and practical capability; second, ensure safety with minimum costs; third, facilitate small-scale agricultural processing; and fourth, expand Local Food to reach the entire sectors of public catering in the relevant region and build a local food system.


Researchers: Jeong Eunmi, Kim Yonglyoul, Heo Joonyung
Research period: 2016. 1. ~ 2016. 10.
E-mail address: jeongem@krei.re.kr