Smart Farm Market Grows 15.5% Annually
CJ Freshway, Homeplus Join In
"Smart Farm Trend to Intensify"
The distribution industry is experiencing a 'smart farm' boom. It is praised for its advantages of reducing factors causing instability in agricultural product supply and being eco-friendly by not wasting resources.
According to the Korea Agro-Fisheries & Food Trade Corporation on the 21st, the domestic smart farm market is expected to grow from $240 million in 2020 to $490 million in 2025, increasing by an average of about 15.5% annually. The area of farms applying smart farm technology has also rapidly expanded. The smart farm area increased from 4,900 hectares in 2018 to 5,383 hectares in 2019, a 9.9% increase, and further grew to 5,985 hectares in 2020. It is estimated to reach 6,485 hectares in 2021.
The continuous expansion of the domestic smart farm market is attributed to climate change and aging population. Smart farms are gaining attention as an alternative to solve the instability in agricultural product supply caused by abnormal climate and labor shortages due to aging. A smart farm refers to agriculture that integrates information and communication technology (ICT) into facilities such as greenhouses and vinyl houses for horticulture and livestock, automatically maintaining optimal growth environments for crops and livestock. From a corporate perspective, it allows year-round cultivation of crops regardless of climate and region, enabling stable quality and price maintenance.
CJ Freshway has installed smart farm indoor cultivators within its headquarters to supply vegetables grown there to its cafeteria. This attempt has been evaluated as reducing the distribution process of food ingredients and minimizing the use of packaging materials. Homeplus operates a farm cafe where consumers can directly observe the cultivation process from sowing to harvesting. 'Metro Farm,' located in idle spaces within subway stations, allows customers to harvest vegetables themselves and make salads with the harvested vegetables.
An industry insider said, "Smart farm technology is an attractive option for companies as it can stably manage supply volume and is a ‘good technology’ that responds to recent consumer trends," adding, "With increasing interest in eco-friendly and ethical products, the smart farm trend in the domestic industry is expected to intensify."
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