NongHyup Cooperative Must Enter the Parcel Delivery Market for Farmers

NH Nonghyup's Entry into Parcel Delivery Could Save 80 Billion KRW Annually in Farm Management Costs

Revitalization of Parcel Delivery in Underdeveloped Areas, Expected Expansion of Sales through Direct Transactions between Producers and Consumers

Democratic Party of Korea Representative Yoon Jae-gap (Haenam·Wando·Jindo) / ⓒ Asia Economy

[Asia Economy Honam Reporting Headquarters Reporter Kim Hyun] Yoon Jae-gap, a member of the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee (Democratic Party of Korea, Haenam·Wando·Jindo), urged the National Agricultural Cooperative Federation (NACF) on the 16th during the NACF's national audit to actively enter the courier market to revitalize logistics in production areas and increase practical benefits for farmers.

So far, courier services in rural areas have been avoided by existing courier companies due to inconsistent volume and weight, as well as the perishability and fragility of agricultural products. Even when accepted, agricultural and livestock products tend to be bulky and require long-distance delivery, resulting in courier fees reaching 6,000 to 7,000 KRW based on 20 kg, which has been a burden for farmers.

In response, NACF has been promoting a courier business in partnership with Hanjin Courier since 2017, achieving the milestone of handling 20 million shipments within two years of starting the business. Courier costs have also decreased to around 3,800 KRW as of last year.

If NACF captures about 90% of the courier volume in rural areas, courier fees are expected to drop to around 2,500 KRW, enabling farmers to save approximately 80 billion KRW annually in operating costs.

Furthermore, revitalizing courier services in underdeveloped areas and expanding sales of agricultural and livestock products through direct transactions between producers and consumers are also expected. Differentiation through a cold chain system is possible as well.

Assemblyman Yoon Jae-gap emphasized, “If NACF enters the courier business, it will greatly help revitalize logistics in production areas and increase practical benefits for farmers,” adding, “I hope NACF actively considers full-scale entry into the courier market beyond strategic partnerships.”

This content was produced with the assistance of AI translation services.