Daesang Signs Business Agreement with NongHyup Economic Holdings for Stabilizing Supply and Demand of Domestic Agricultural Products

Agreement to Resolve Supply Instability of Domestic Agricultural Products and Contribute to Price Stability

On the 16th, at the Daesang headquarters in Jongno, Park Yong-joo, President of Daesang Food Business Division (left), and Woo Sung-tae, CEO of NongHyup Economic Holdings, are posing for a commemorative photo during the business agreement ceremony between Daesang Co., Ltd. and NongHyup Economic Holdings.

[Asia Economy Reporter Eunmo Koo] Daesang announced on the 17th that it has signed a business agreement with NongHyup Economic Holdings to stabilize the supply and demand of domestic agricultural products and revitalize distribution channel projects.

Daesang explained that it focused on the instability of food ingredient supply caused by soaring prices, abnormal weather, and issues such as war, and signed this agreement to contribute to stabilizing consumer prices and farmers' income through a stable supply of domestic agricultural products.

Through this business agreement, Daesang and NongHyup Economic Holdings mutually promised to contribute to the stable supply of domestic agricultural products and the resolution of supply and demand instability by jointly planning products. In addition, they plan to cooperate in sharing food hygiene and safety information for safe food supply, supporting food safety inspections such as harmful substance testing, and diversifying cooperative projects by utilizing the distribution and logistics infrastructure of both companies.

First, the two companies will expand NongHyup's supply items to ensure the stable supply of raw materials for Jongga Jip Kimchi. Ahead of holidays when kimchi demand is high, they have already started supplying agricultural products such as cut young radish, up to 4 tons per day, as well as kimchi ingredients like peeled garlic, peeled onions, and altari radish. They also plan to expand sales of Daesang's main product lines through NongHyup Hanaro Mart and extend cooperative projects such as jointly developing products.

Park Yong-joo, Head of Daesang's Food Business Division, said, "Recently, various issues such as abnormal climate have caused difficulties not only for farmers but also for consumers. We are pleased to contribute, even slightly, to stabilizing consumer prices and farmers' income by establishing a stable food ingredient supply system through this agreement."