GreenPlus Signs 8 Billion KRW Smart Farm Supply Contract with Shinsegae Food Partner PamPam

[Asia Economy Reporter Hyunseok Yoo] GreenPlus announced on the 1st that it has signed a contract worth approximately 8 billion KRW to supply tomato smart farms with the agricultural corporation FarmFarm. The contract amount accounts for 15% of GreenPlus's individual smart farm sales of 55 billion KRW last year. This smart farm is a large-scale facility of 29,168m² (8,823 pyeong) to be constructed in Nonsan City.

FarmFarm is a large agricultural corporation with annual sales of 15 billion KRW and is a partner of Shinsegae Food. This smart farm project is carried out through cooperation among companies, including Shinsegae Food making advance payments to FarmFarm to establish a ‘farmhouse-large corporation’ win-win growth model. All tomatoes cultivated in the smart farm by FarmFarm (1,300 tons annually) will be supplied to Shinsegae Food for five years starting from 2022.

GreenPlus explained that this large corporation’s support project for agricultural corporation smart farms is due to the impact of recent abnormal weather. Cases where the smooth supply of open-field crops becomes difficult are continuously occurring due to heatwaves and unusually long rainy seasons. As many large corporations are supporting smart farms for farmers due to such abnormal weather, GreenPlus expects smart farm sales to continue to increase.

A GreenPlus official said, "As the demand for smart farms from large corporations increases, large-scale supply contracts are also increasing. Not only companies but also government support policies considering the decrease in rural population are promoting the smart farm business, so orders through local governments are expected to steadily increase."

Meanwhile, GreenPlus’s consolidated operating profit for the first quarter grew by 56% to 1.8 billion KRW. Sales in the smart farm business division grew by 257%. With order backlogs exceeding 30 billion KRW, the company expects the first half performance this year to achieve the largest scale following the first quarter.

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