Korea: Distribution costs take up almost half farm produce retail prices
Hwang Jeong-hee, Seoul Resident: "Up to 80 percent, I get goose bumps when I hear that. The money that goes to distribution is way too much."
The Korea Agro-Fisheries and Food Trade Corporation said Tuesday that on average, nearly half of the retail price for farm produce went towards distribution last year.
On the high end of that scale is white radish and Chinese cabbage -- a whopping 80 percent of the total price tag goes towards just getting the vegetables to the produce aisle.
Hwang Ji-hye, Reporter: "This white radish costs around 2-thousand won or roughly 2 U.S. dollars. Of that, a dollar sixty goes towards distribution, leaving 40 cents for the farmers."
Lee Byoung-hoon, Researcher, Korea Rural Economic Institute: "The government should allow more competition in distribution channels. This could lead distributors to lower their margins."
Consumers also want more channels from which to buy agricultural products.
Kim Hae-ja, Seoul Resident: "Direct transaction markets held in apartment complexes should take place more often so consumers like me and producers can both benefit."
Source: www.arirang.co.kr
