Seoul to reform food distribution system ( 08/08/28 ) | |||||
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Part | Charger | moonsj | date | 08/08/28 | |
Seoul to reform food distribution system
The government will bring drastic changes to the current food distribution system to stop middlemen from making excessive profits off of farmers and customers, officials said yesterday.
"A pig worth 230,000 won is sold at 490,000 won by the time it reaches the consumer. The distribution system must have problems," Agriculture Minister Chang Tae-pyong said during a visit to a local supermarket chain in Seoul last week.
The government said it had begun analyzing the structure of the food distribution system. It will also encourage Seoul's municipal offices to open outdoor markets for farmers to directly sell their products to customers in the city more than twice a week.
According to Korea Agro-Fisheries Trade Corporation, farmers could sell a 650 kilogram premium hanwoo steer for 7.43 million won ($7,350) but customers buy the product at 12.30 million won from retailers in the cities.
Middlemen from distribution centers and supermarket chains take 59 percent of the retail price of hanwoo on the pretext of rent, transportation and labor costs, the trade corporation said in a report released yesterday.
Hanwoo is not the only product that is distributed by the multilayered system.
Tracing the distribution routes of 42 popular agriculture and fishery products, the report found that on average, producers received just 44.1 percent of the retail price while middlemen took the rest.
In anticipation of Chuseok, the Agriculture Ministry plans to hold outdoor markets in 2,300 places around the country to allow farmers sell their products without having to go through middlemen.
It plans to sell agriculture products 10 to 40 percent cheaper than retail prices in the local supermarkets.
By Cho Chung-un
(christory@heraldm.com)
http://www.koreaherald.co.kr/
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