‘Bright Red’ Yeongyang-gun, Hot Pepper Purchase in Full Swing... "Maintaining Top Quality Nationwide with Increased Incentives"

O Do-chang, the governor of Yeongyang County, is visiting the red chili pepper purchase site to offer encouragement.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Gwiyeol] In Yeongyang-gun, Gyeongbuk, the purchase of red chili peppers began on the 10th and will continue until September 30.

The Yeongyang Chili Distribution Corporation, a local public enterprise established in 2006, is in charge of the chili purchase project.

The red chili purchase project not only supports the price stability in production areas but also helps reduce production costs and alleviate labor shortages in the era of high oil prices, gaining positive responses from chili farmers in Yeongyang-gun.

Despite the decrease in the agricultural population due to aging, the number of applicant farms has steadily increased. It was 960 households in 2019, 1,077 households in 2020, and 1,101 households in 2021. This year, 1,199 households have contracted for 5,185 tons.

The purchase price is decided by the board of directors of Yeongyang Chili Distribution Corporation, referring to the auction prices of dried and red chili peppers at public wholesale markets in Seoul, Daegu, and nearby Seoan-dong Nonghyup Agricultural Products Market.

From August 17 to August 23, the second week of purchase, the purchase price per kilogram is 2,600 KRW for top grade and 2,500 KRW for first grade. Prices are adjusted once a week during the purchase period, and if there are sudden fluctuations in market prices, adjustments will be made as needed to reflect market conditions as much as possible.

After the red chili purchase project is completed, incentives such as bonuses and organic fertilizers will be provided according to the purchase results of each contracted farm.

Until last year, bonuses of 200 KRW per kilogram were provided to farms with a purchase rate of over 80%. Starting this year, support will be expanded to 300 KRW per kilogram for farms with a purchase rate of over 60% to encourage red chili shipments.

Yeongyang Chili Distribution Corporation is the only local public corporation nationwide that owns the largest facility for a single chili product. After selecting varieties according to the level of spiciness, it has introduced an integrated processing system from farm contracts and purchase → drying → processing → distribution to preserve the chili’s taste, color, and nutritional components.

O Do-chang, the mayor of Yeongyang-gun, who visited the purchase site, said, “We will help increase the income of chili farming households by guaranteeing the highest price for red chili peppers so that farmers can focus on chili farming with peace of mind.”

Kim from Cheonggi-myeon expressed gratitude, saying, “The red chili purchase project not only increases farm income by reducing utility and labor costs necessary for dried chili production but also allows elderly farmers, who often face difficulties in self-drying, to focus on chili farming with peace of mind without giving up.”