Jeonnam Province Expands Contract Farming Between Producer Groups and Food Companies

Recruitment of Agriculture-Business Partnership Participants Begins This Month
Support for Equipment and Transportation Costs... Expected to Boost Farm Income

Jeollanamdo focuses on discovering models to strengthen the linkage between agriculture and enterprises in 2025. Provided by Jeonnam Province

Jeollanam-do is recruiting candidates for the 2025 program to strengthen connections between agriculture and businesses, aiming to expand contract farming between local farmers and food companies and to discover a Jeollanam-do-style contract farming win-win model.

The project to strengthen the connection between agriculture and businesses supports necessary expenses for producer groups supplying agricultural products through contract farming and food companies utilizing these contract-farmed products.

Support is provided for producer groups (consisting of at least five farms) engaged in contract farming of agricultural products for processing, or groups linked with local agricultural cooperatives, covering education and consulting, quality control, improvement of farming environments, and rental costs for facilities and equipment.

Food and restaurant companies that use locally produced agricultural products through contract farming with local producers are also eligible for support in areas such as quality control, financial services related to transaction payments, sales promotion and marketing, use of facilities and equipment, and new product development costs.

Last year, the food company Kukia Co., Ltd., which received support, was able to stably procure 75 tons of soybeans through contract farming with local farmers, contributing to increased income for local farms.

The maximum amount of support can be up to 40 million KRW (with a separate 20% self-contribution) depending on the number of participating farms and conditions such as certification as a rural convergence business operator.

Detailed information about the project can be found on the website of the Jeonnam Rural Convergence Industry Support Center.

Park Sangmi, Director of Agricultural and Food Distribution at Jeollanam-do, said, "Contract farming is a win-win strategy that provides companies with a stable supply of agricultural products and secures stable sales channels for farmers," adding, "We will support various initiatives to discover and expand the Jeollanam-do-style contract farming win-win model between farmers and companies."