Kang Ho-dong, chairman of the National Agricultural Cooperative Federation, said on the 6th, "We will push for high-intensity restructuring of loss-making affiliates and will reduce the burden even if it means closing them down."
At a press briefing marking his first anniversary in office held at the government Sejong City Hall of the Ministry of Agriculture, Food and Rural Affairs, Chairman Kang noted, "While NongHyup has dedicated itself to distribution for farmers and fishermen, I believe that if there are issues, it is right to boldly put it on the operating table and refine it."
Chairman Kang proposed connecting the distribution networks of the e-commerce site "NongHyup Mall" and Hanaro Mart to reduce logistics expenses in relation to strengthening NongHyup's distribution business. He also suggested using the Agricultural Product Centers (APC) owned by NongHyup as local logistics warehouses. Kang said, "If we leverage the human and material resources of NongHyup, I believe we can gain sufficient competitiveness," and added, "We will supply safe and fresh food to the public."
Regarding the agricultural sector's biggest issue of "reducing rice cultivation," Chairman Kang stated, "I agree with the reduction of the cultivation area itself." He emphasized, "It seems inappropriate for me to directly mention the government's push for a reduction of 80,000 hectares (ha) as the chairman of NongHyup."
He said, "Reducing the rice cultivation area is a difficult challenge," adding, "A certain level of reduction is necessary for the rice industry to undergo restructuring." However, he noted that from the farmers' perspective, it may not be easy to give up rice farming, where the mechanization rate is high, and he mentioned the need for measures to preserve farmers' income from switching to other crops. He pointed out that securing markets for wheat or beans planted instead of rice is essential for the reduction of rice production to proceed smoothly.
Chairman Kang suggested promoting smart farms as a measure to increase farmers' income. NongHyup plans to introduce affordable smart farms, which can be implemented at a cost of 10 to 15 million won in plastic greenhouses, to over 1,000 farms this year. Seventy percent of the expenses will be supported by NongHyup, while 30 percent will be covered by the farmers themselves to ease their financial burden. Kang said, "From the farmers' standpoint, it should be possible to improve productivity without spending a lot of money."