Establishment of Pallet-Unit Unloading Transactions for Napa Cabbage at Garak Market

Full Implementation of Mandatory Pallet Unit Unloading Transactions from April 2, with All Transactions Now Conducted by Pallet

Increased and Early Support for Pallet Shipping Subsidies to Reduce Shippers' Distribution Costs (Mesh Pallet Subsidy Increased from 3,000 KRW/unit for 3 Years to 6,000 KRW/unit for 2 Years)

The Seoul Agricultural & Marine Products Corporation (President Moon Young-pyo) has enforced mandatory pallet unit unloading transactions for cabbages brought into Garak Market starting April 2.

From February 6 to March 31, when loading and unloading transactions were conducted concurrently, approximately 100 pallets were used in a pilot project and concentrated shipments to allow shippers sufficient preparation time for unloading transactions. Additionally, through on-site visits and promotional efforts, it was announced that since the mandate, all unloading transactions have been stably conducted by pallet.

The corporation and the wholesale market corporations identified pilot project participants, with 39 pallets shipped from February 6 to March 25, and in the last week of March, all shippers participated freely, resulting in 69 pallets shipped.

The subsidy totaled 1 million KRW per vehicle, with the corporation covering 600,000 KRW and the wholesale corporations covering 400,000 KRW.

During the period of concurrent loading and unloading transactions, shippers expressed concerns about increased costs due to palletization. The reasons included increased costs for pallet rental, packaging materials, and machinery use, as well as chronic labor shortages and additional labor costs.

Bird's-eye view of Garak Market modernization plan

In response, the corporation decided to increase the subsidy for all shippers from 3,000 KRW to 4,000 KRW per pallet, rather than providing support limited to specific shippers, and to provide concentrated early support by increasing the subsidy from 4,000 KRW for 3 years to 6,000 KRW for 2 years.

Originally, the logistics subsidy for mesh pallet unloading transactions for cabbages, agreed upon at the Market Management Operations Committee in December 2022, was 3,000 KRW per pallet for 3 years. In March 2023, the corporation, wholesale market corporations, and the Korea Agricultural Distribution Corporation Central Association agreed to increase the subsidy by 1,000 KRW and compress the support to 6,000 KRW for 2 years.

Box-packaged products will continue to receive a basic subsidy of 8,000 KRW for 3 years, with an additional 2,000 KRW compensation provided if the shipping cost falls below the supply and demand adjustment manual of the Ministry of Agriculture, Food and Rural Affairs.

Going forward, the corporation plans to focus on establishing a healthy trading environment where high-quality cabbages are brought in and receive appropriate prices. In collaboration with distributors, they will conduct seasonal on-site visits to production areas, promote the eradication of binding practices, encourage high-quality shipments and prevention of unfair bidding, and ensure thorough product selection before auctions to receive fair prices. This aims to revitalize cabbage trading and increase consumption in Garak Market, where cabbage trading volume has been steadily declining.

The volume of cabbage traded at Garak Market decreased by 34.5% over the past 10 years, from 200 million tons in 2013 to 133 million tons in 2022.

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