Garlic and onion farmers in South Korea’s Yeongnam region (Gyeongsangnam-do, Gyeongsangbuk-do, and Daegu) have long struggled with price volatility and unstable incomes due to fluctuating production volumes and inefficient distribution systems. As the country’s largest production hub for these crops, the region supplies a significant portion of the nation’s demand, yet farmers often find themselves at the mercy of middlemen rather than setting fair prices for their produce.
To address these challenges, the National Garlic Producers Association and National Onion Producers Association initiated the formation of the Yeongnam Vegetable Cooperative (Yeongnam Vegetable Agricultural Cooperative). After a preparatory meeting on May 12, the cooperative’s founding assembly was held on June 22 in Goryeong-gun, Gyeongsangbuk-do, with around 160 members in attendance. Banners at the event carried strong messages: “Let’s decide the price of the garlic and onions we produce!” and “Secure stable sales channels through cooperative contract farming!”
Key Objectives of the Cooperative
- Price Stabilization: The cooperative will negotiate contract farming agreements to ensure farmers receive fair prices, reducing dependency on volatile market conditions.
- Streamlined Distribution: By cutting excessive distribution margins, the cooperative aims to create a more transparent and efficient supply chain.
- Collective Marketing & Supply Management: Members will work together on marketing, quality control, and stable supply-demand balance to prevent oversupply and price crashes.
According to Kim Chang-soo, the cooperative’s first chairman and former head of the Garlic Producers Association, “Farmers have long participated in supply-demand policies to secure production costs and provide affordable produce to consumers, but traditional agricultural cooperatives have limitations in price control. The Yeongnam Vegetable Cooperative was founded so that farmers themselves can determine the value of their crops.”
Broader Impact on Agricultural Sustainability
The cooperative’s model aligns with global trends where farmers’ collectives improve bargaining power. Similar initiatives in Europe (e.g., cooperatives in the Netherlands) and Japan (JA Group) have successfully stabilized prices and strengthened rural economies.
With plans to finalize regulatory approval this week and hold a regular general assembly on August 8, the cooperative is set to begin full-scale operations soon. If successful, it could serve as a blueprint for other agricultural sectors facing similar challenges.
The Yeongnam Vegetable Cooperative represents a bold step toward farmer empowerment, offering a sustainable solution to price instability and inefficient distribution. By uniting producers under a shared vision, the cooperative not only strengthens farmers’ incomes but also ensures a more reliable supply chain for consumers.
