Dir.-Gen. Nam says ministry has continued to assist in project to develop value-added foods since 2010 with goal of boosting private sector’s low R&D investments in domestic food industry
Director General Nam Tae-heon of the Food Industry Policy Bureau at the Ministry of Agriculture, Food and Rural Affairs (MAFRA). (Photo: MAFRA)
The value of the food manufacturing industry is estimated at 89 trillion won as of 2017, accounting for 6 percent of the nation’s manufacturing industry.
The number of workers stood at 346,000, so it is a job creating industry. The food industry has emerged also as a major consumer of homegrown agricultural produce, as use of domestic food raw materials is on the rise.
But the industry has seen the ratio of R&D investment standing at a meager 0.36 percent, too low compared to that of the manufacturing industry’s average of 2.11 percent.
The Ministry of Agriculture, Food and Rural Affairs (MAFRA) has continued to assist in a project to develop value-added foods since 2010, with the goal of boosting the private sector’s low R&D investments in the domestic food industry, said Director General Nam Tae-heon of the Food Industry Policy Bureau at the ministry.
“Starting this year, we’re implementing a ‘futuristic, innovative food technology development project.’ The ministry is concentrating investments to raise to levels of advanced countries proprietary technologies of innovative foods such as elderly-friendly food, medical food, and alternative food, emerging as promising sectors of late,” Dir.-Gen. Nam said.
“The ministry is launching a new project this year to provide food technology transaction and transfer so that excellent technologies universities and research institutes have so far developed can be commercialized. We provide support for the matching of technology owners and would-be technology buyers though technology transfer institutions,” he said.
The following are excerpts of an interview with NewsWorld and Dir.-Gen. Nam in which he spoke of policies of supporting the constant growth of the Korean agricultural and food industry.
A poster to publicize Korea Food Show 2019, to be held at aT Center in Yangjae-dong, Seoul, from Oct. 23 to 25. (Photos: aT)
Question: Will you tell our readers about the current status of the Korean food industry and major food industry policies?
Answer: The value of the food manufacturing industry is estimated at 89 trillion won as of 2017, accounting for 6 percent of the nation’s whole manufacturing industry.
The number of workers stood at 346,000, so it is a job creating industry. The food industry has also emerged as a major consumer of homegrown agricultural produce as use of domestic food raw materials is on the rise.
The ministry is implementing diverse policies designed to contribute to the development of the national economy by maintaining a constant growth of the food industry.
First of all, we’re expanding industry infrastructure so that the food industry can achieve innovative growth. The ministry provides support to R&D on the development of futuristic, innovative foods such as elderly-friendly food and alternative food products and commercialization by transferring proprietary technologies, owned by schools and research institutes, to SMEs.
We offer active assistance in growth of tenant companies by expanding infrastructure of the national food cluster FOODPOLIS and strengthen corporate support.
The ministry endeavors to promote the growth and industrialization of traditional foods such as kimchi and traditional Korean liquors. Under a plan to cultivate the kimchi industry, which was established in March, the ministry signed an MOU on the use of locally made kimchi to expand sales of the food.
It also supports contract cultivation among producers and companies.
We plan to establish steps to raise the competitiveness of the soybean paste industry to make the traditional Korean food industry a value-added one while expanding infrastructure such as the Sauce Industrialization Center and the Fermentation Center.
We expand support to diversify export countries to expand Korean agricultural produce exports despite hard conditions such as Japan’s trade curbs on Korea. The ministry supports the expanding of cold chain and logistics centers to explore “New South Countries” and “New North Countries“ markets. We plan to establish strategies to expand exports to New North Countries in November.
Lastly, we work toward shared growth with the Korean agricultural industry. The ministry provides support to smooth contract cultivation between Korean agricultural producers and food companies.
Financial support is offered to SME food companies buying local agricultural produce and incentives such as low and preferential interests are given according to the use of local agricultural produce and contract cultivation outcomes.
We continue to make efforts to make the food and dining industry a growth engine for the development of the national economy.
Q: What is the purpose of hosting the Korea Food Show? Please tell us about features of Korea Food Show 2019.
A: The food industry is greatly contributing to the development of the national economy through job creation and consumption of local agricultural produce.
The industry experiences difficulties in securing markets and obtaining market information since it is small-sized with companies employing fewer than 10 workers, accounting for 92 percent of the total.
Korea Food Show has been held since 2008 so that SME food companies can boost sales and share diverse information and secure a competitive edge.
In particular, Korea Food Show 2019, the 11th rendition of fair, is serving as an opportunity to expand youth food venture entrepreneurs’ participation, and publicize and sell their products.
A youth startup mentoring pavilion will be set up to help youth share information and experiences of food startups on top of programs such one-on-one meetings between food companies and youth and talk concerts.
Meetings with Korean and foreign buyers will take place so that food companies can expand sales, and we plan to support meetings with large-sized online distribution companies as online markets have been on a roll.
Q: Will you touch on the current statues of food industry startups and their tasks?
A: Startup fever is catching on in the food industry. Creative and diverse food industry startup items combined with social network service content have attracted keen attention among trend-savvy people in their 20s and 30s.
In particular, food industry startups such home meal replacements, food tailored to meet needs, alternative food and innovative foods, provides a shot in the arm for the food industry since they increase consumption of local agricultural produce and job creation.
Even though food industry startups are on the rise every year, a majority of them have failed to go beyond “Death Valley” since the food manufacturing industry has higher costs in raw materials, lower added value and less profitability.
Technology-based startups are recommended over idea-based ones to overcome a capital crunch at an early stage. The ministry is providing diverse support tools such as R&D and technology transfers to spur innovative technology startups of food startup companies lacking funds.
The ministry plans to continuously explore policy support regimes so that food startup companies with innovative ideas can be settled stably and sustained in the market down the road.
A view of Korea Food Show 2018.
Q: Will you introduce the current status of Korea’s representative homegrown agricultural and food exports and support, such as assistance in participation in overseas fairs to explore foreign agricultural and food markets, one-on-one negotiations with foreign buyers, and publication?
A: Korea-grown agricultural and food exports surged from $3 billion in 2008 to $6.9 billion in 2018 to maintain constant growth for the past decade.
In particular, fresh item exports, directly linked to farming household income, logged a record high last year, and continue to grow this year.
The representative products with Korea’s unique characteristics are ginseng and kimchi. Ginseng product exports stood at $150 million in the first nine months of this year, up 8.7 percent over the same period last year. Kimchi exports jumped 11.4 percent to $78 million. Beverage drink and ramyeon (instant noodles) exports are on the rise.
The ministry is employing diverse support policies to help the Korean agricultural and food products find their way into foreign markets. We’re assisting Korean agricultural and food producers’ connectivity with buyers at exhibitions and negations sessions with buyers, and publicity activities to raise recognition of Korean agricultural and food products.
This year, we have provided or will provide support in participation in a combed 62 major exhibitions, including Sial China held in Shanghai in May, Anuga Food Fair held in Cologne, Germany, Oct. 5-9.
Each negotiation session with invited foreign buyers has taken place or will take place in the first and second half. Ads using public relations models such as former Korean national soccer team coach Park Hang-seo, now a Vietnamese soccer hero, and Astro, a Korean boy pop idol group, have been added to online and offline media channels such as social network services and outside advertising signboards.