5 Reform Objectives
Nonghyup to boost farm income through various means

He National Agricultural Cooperatives Federation (Nonghyup) is set to promote five key objectives this year as its main business undertaking.
In a new year briefing made to Minister of Agriculture and Forestry Park Hong-soo, Nonghyup chairman Chung Dae-kun reported that the first objective is to make farmers' income stable following the revision of the rice policy system. Nonghyup will maintain the amount of rice purchase at 7.17 million seok, the same as last year, along with securing the production and distribution system of high-quality rice around the country. It will also try to expand the food service at schools and set up corners for the sale of rice breads and cakes across the country aimed at expanding rice consumption.
Nonghyup will also expand the sales outlets of farm and livestock products and the supply of safe farm produce. In order to perk up the sale of farm produce, it will supply 1.2 trillion won in funds free of interest. It will help expand the number of sales outlets and foster export strategic products. It will also build a base for e-shopping for Nonghyup products. It will also build control systems for safety and quality of farm and livestock products.
Nonghyup will also lower interest charges on mutual finance loans as part of its effort to reform financial facilities for farmers.
The farmers' organization will also reform its organization for real benefit of farmers. It will restructure non-productive cooperatives so that they may be able to stand on their own. It will set up the election management committees for election of heads of cooperatives and operate them. It will also set up an annual salary system for managing director, directors and heads of cooperatives. It will also firm up non-standing chairman system following the establishment of a professional manager system.
Expand the Love Farm Villages campaign, especially one company and one village tie-up for 10,000 cases. Promote the movement for finding the second hometown for city residents including children. Promote welfare for farmers through the operation of the Nonghyup Cultural Welfare Foundation. Increase non-farm income by hiking the number of tourists to farm villages.
Nonghyup Chairman Chung said Nonghyup will exert its effort to produce high-quality rice and expand its consumption as well as renovate farm and livestock distribution system, reform financial system centered around farmers, expand the pannational Love Farm Village movement to provide a momentum for simultaneous growth for urban and farm regions in the country.
The Nonghyup chairman asked Minister Park for the government help for a special measure for 2.7 million seok of rice held by Nonghyup bound for North Korea, increase in the rice purchase funds and preservation of the special savings program for farm and fishery communities.
Minister Park countered that Nonghyup should continue with its reform, strict management of elections, reform distribution, strengthen safety measures for food, cut prices of fertilizers, stern management of inoculation system, good results for one company and one farm village campaign and boost the quality of life for farmers.
Nonghyup will try to maintain the level of government rice purchase to 4.94 million seok this year, the same as last year and take measures for stable income of farmers.
In the meantime, Nonghyup will be prepared for the sale of imported rice in domestic market and raise the ratio of small package rice sale to 15 percent from 13 percent in 2004 and foster Nonghyup brand rice, which are competitive in the market. In order to expand rice consumption, Nonghyup will supply rice to local autonomous organizations, which set up systems for school meals. It will supply rice breads and rice cakes to grocery stores including 80 Mart, which Nonghyup will operate.
In order to expand member cooperatives sales, Nonghyup will supply interest free funds amounting to 1.2 trillion won, up 500 billion won from last year. The fund is expected to be used to change the distribution set up of rice at its production base.
Nonghyup will establish some 200 80 Mart stores with a space of 300 pyeong, two 80 clubs and two integrated retail center by 2007.
For stable operation of Nonghyup e-shopping, it will expand the number of home delivery centers to 25 as well as expand the number of goods available from e-shopping to 50,000. It will also set up and operate e-marketplace for farmers so that they would be able to sell products directly to consumers.
In order to vitalize farm product exports, Nonghyup will allocate products by country and also expand exports of kimchi and ginseng products taking advantage of the popularity of Korean entertainment programs in Southeast Asian countries including Japan.
Nonghyup will also expand the number of environment-friendly farm product sale corners to 170 in answer to rise in demand for stable farm and livestock products. It will operate 5 food safety centers to boost public trust in farm and livestock products supplied by Nonghyup.
In order to reduce financial expenses for farmers, Nonghyup cut the credit loan interest rate to below 8.5 percent as part of its effort to clean up curb loan rates in farm communities.
Nonghyup will also maximize the extension of the measure to cut debts of farm households and promote early government allowance of 400 billion won to secure the soundness of the Agriculture, Forestry and Fishery Credit Guarantee Fund. It will try to expand guarantee systems. Reorganization of cooperatives will also be pushed to prevent the development of disruptive ones by merging them with sound ones.Along with the merger, it will strengthen social and ethical management evaluations so that cooperatives would be able to focus more on its given roles.
At the same time, it will create 3 trillion won in funds by 2007 to supply it to cooperatives free of interest charges. It will also supply 1 trillion won to farmers to benefit from their businesses aside from those given by cooperatives to farmers. For improvement in the personnel system, Nonghyup will expedite the establishment of annual salary system for managing director, directors and cooperative heads as early as possible. In order to reform the operation of the organization of the central cooperative council, Nonghyup will hold a great debate on new farm village new cooperative movement to enhance responsible management system through awareness reform to prevent accidents. Nonghyup will also expand the Love Farm campaign to perk up farm activities in farm regions. It will expand "one company, one village sisterhood tie" to 10,000 pairs. It will bring urban and farm regions closer through all kinds of new programs to promote exchange between the two regions. It will also publicly collect ideas to perk up the Love Farm campaign to induce a wider public participation in the campaign. It will also issue Love Farm and Farm Tourism coupons to promote city residents including children to visit their second home town in farm areas.
In an effort to improve the quality of life in farm regions in the country, Nonghyup will operate the Nonghyup Cultural Welfare Foundation with 500 billion won fund and by 2012, set up a scholarship fund amounting to l00 billion won and provide to 2,000 children of farm households compared to 400 children in the amount of 800 million won this year.
In order to increase non-farm income for farmers, Nonghyup will help set up around 200 farm stay places for and 550 weekend farms for city residents to enjoy farm life by taking vacations or tours under the five city-2 villages program, calling for staying five days in cities and two days in farms. nw

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