CJ Freshway Expands Agricultural Product Sales Channels to B2C

CJ Freshway Packing Storage Center appearance (Photo by CJ Freshway)

[Asia Economy Reporter Seungjin Lee] CJ Group's food ingredient distribution and group catering specialist CJ Freshway is expanding the market channels for domestic agricultural products.

CJ Freshway announced on the 7th that since May, it has partnered with major domestic food ingredient marts to showcase 10 types of agricultural products including lettuce, cucumber, chili peppers, and potatoes, and will expand this to 29 types starting in September.

The supply volume has also increased from about 3 tons initially to 8.6 tons, nearly tripling in just over four months. Various seasonal agricultural products such as onions and green onions, which are expected to be harvested in full swing soon, are also scheduled for release.

The expansion of contract-farmed agricultural products, which were previously distributed through B2B channels such as existing dining establishments and group catering, to large food ingredient marts has been made possible by the expanded role of the Agricultural Product Packing Storage Center (hereafter PS Center) operated by CJ Freshway.

Previously, since products were supplied from each individual company, quality control and standardization were difficult, making it challenging to expand sales channels to B2C routes. However, with the full operation of the PS Center, agricultural products purchased from production areas are gathered at the PS Center, then undergo processes such as sorting and packaging to be supplied to business sites within the respective regions. Because all processes are possible in one place, quality control and standardization are achievable, enhancing product value.

Earlier, CJ Freshway started operating the metropolitan area PS Center (826㎡, 250 pyeong) in Gwangju, Gyeonggi Province in October last year, and in March established and has been operating the eastern region PS Center (562㎡, 170 pyeong) in Cheongdo, Gyeongsangbuk-do. Through these two PS Centers, about 100 items including vegetables, mushrooms, and fruits can handle up to 80 tons of orders per day on average.

Since it takes only one day from shipment at the production site to productization and distribution, the freshness of the produce from the production area can be enjoyed directly at the table. From the perspective of contract farmers, they can focus solely on farming without worrying about sales channels. As the volume directly purchased by CJ Freshway increases, the distribution stages naturally decrease, enabling a reduction in distribution costs.

A CJ Freshway official said, “Through the expansion of domestic agricultural product distribution, farmers can alleviate difficulties in market development, and companies can present high-quality agricultural products to consumers, creating a mutually beneficial structure. We will continue to strive for continuous volume expansion and the development of various sales channels.”

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