Food Industry's Win-Win Strategy with Local Farms

Photo by OB Beer Hanmac

[Asia Economy Reporter Moon Hyewon] The food industry is exploring various strategies for mutual growth with local farmers, such as direct contract agreements with farmers and expanding contract cultivation.

On the 11th, Ilyeon FNC announced that it recently signed a business agreement with Hongseong County Office and Ato Hanwoo Agricultural Cooperative, which produces Hongseong Hanwoo, to develop processed livestock products using Hongseong Hanwoo.

The purpose of the agreement is to develop and sell HMR (Home Meal Replacement) products and gift sets using Hongseong Hanwoo, which boasts excellent livestock quality.

Ilyeon FNC plans to develop and sell seven types of HMR products such as ‘Hanwoo Sagol Gomtang’ and ‘Seolleongtang’ using the supplied Hongseong Hanwoo.

In the case of OB Beer, it has practiced mutual growth with local farms by launching ‘HANMAC’, made with domestically produced rice, earlier this year. To maintain the best taste and quality, they signed direct contracts with local farmers and used only 100% high-quality domestic rice, creating a uniquely Korean flavor. Through this, they introduced the refreshing flavor derived from Korean rice to consumers and established an opportunity to become Korea’s representative beer using domestic rice.

CJ Freshway expanded its contract cultivation areas to support domestic farms and develop sales channels. Following the existing 27 regions, seven additional regions including Yesan in Chungnam, Yeongyang in Gyeongbuk, and Yeongwol in Gangwon were added this year, expanding contract cultivation to 34 regions nationwide, with the contract cultivation area reaching about 80 times the size of a soccer field. The number of agricultural product items also increased to 20.

Through contract cultivation, CJ Freshway plans to respond stably to environmental changes such as external price fluctuations and sales channel concerns, while contributing to increasing farmers’ income.