Paju City Builds a Circular Economy Ecosystem with Local Food: Income for Farmers, Fresh Food for Citizens

Paju City Establishes a Win-Win Local Food Direct Trade Model Connecting Producers and Consumers
Opening New Sales Channels for Small-Scale Farmers, Boosting Farm Income and Ensuring Food Safety for Consumers
First City-Operated Local Food Store Opens, Surpassing 220 Million Won in Sales Within Two Months

Farmers are always eager to cultivate crops on even the smallest patch of unused land. However, many are left with no choice but to discard the crops they have painstakingly grown because there is nowhere to sell them.

87% of small-scale farmers in Paju City are in urgent need of securing sales channels. Photo by Paju City

This is the reality faced by female farmers who bear both labor-intensive production and household responsibilities, elderly farmers who inevitably lag behind the younger generation in terms of mechanization, automation, and systemization, and small-scale farmers whose income falls below the average farm household income.

A significant number of small and medium-sized producers in Paju City, a representative urban-rural complex city in northern Gyeonggi Province, are in similar circumstances. According to the 2024 agricultural management registration data, nearly half (49%) of those farming in Paju are aged 65 or older, and 87% are small-scale farmers cultivating less than 1 hectare. In a distribution system dominated by large-scale and commercial farms, small-scale farmers who mainly produce a diverse range of crops in small quantities are finding it increasingly difficult to secure a place in the market. As a result, the trend of leaving or abandoning agriculture is accelerating.

Meanwhile, consumers in new urban areas with high demand for agricultural products are purchasing produce from other regions at high prices and with lower freshness, whether at large supermarkets or online. Even though rural areas are geographically close, it is estimated that only about 25.7% of the fresh agricultural products produced by Paju farmers are consumed within the city.

Additionally, 17.4% is used for the production of processed and preserved foods, 35.7% is sold to local distributors, and the remaining 13.3% is sold to external markets through wholesalers and retailers.

Paju City has focused on local food as a way to innovate the distribution structure of local agricultural products and address these challenges. By revitalizing a local food distribution system that delivers locally produced agricultural products directly to consumers' tables without complicated distribution stages, the city believes it can open new sales channels for farmers and provide consumers with safe and fresh food at reasonable prices, thereby creating a virtuous cycle for local food.

Inside the Paju Local Food Direct Store Munsan Branch. Provided by Paju City

The city has decided to first expand the infrastructure for local food distribution. The blueprint for Paju's local food policy includes establishing a city-operated local food direct store in the northern region, which offers excellent accessibility for producers, and building a large-scale local food complex center equipped with a direct store, educational facilities, and cooking experience rooms in Unjeong New Town, where consumer demand for local food is high. These facilities are designed to encourage active exchanges between producers and consumers.

The plan for the northern region's local food direct store took concrete shape at the end of July, when the Munsan branch of the local food direct store opened. After two months of pilot operation to stabilize the operating system, the Munsan branch held its official opening ceremony on September 29 and began full-scale operations.

The Munsan branch is Paju City's first direct attempt to take charge of the distribution of local agricultural products. Located on the first floor of a newly built 392-square-meter commercial building at 938-1 Seonyu-ri, Munsan-eup, the Munsan branch is the first city-operated direct store, established with a total investment of 600 million won from the city budget, unlike the previous seven direct stores, including the Jori Agricultural Cooperative direct store, which first opened in Paju in 2014. The store is operated by Paju Jangdan Soybean Wellbeing Maru, a city-funded organization.

The Munsan branch was opened by relocating and expanding the "Hae's Mille Local Food" store, which Paju Jangdan Soybean Wellbeing Maru has operated for the past four years. Even during the two-month pilot period, when there was little promotional activity, 153 farms joined as suppliers, and sales increased rapidly, signaling a successful start.

Weekly sales, which started at 11.79 million won in the first week of the temporary opening, jumped to 27 million won by the fifth week and have since remained at 22 to 24 million won per week, bringing the total sales over two months to more than 220 million won as of September 30. This translates to an average daily sales figure of about 3.4 million won, which is comparable to what the seven existing direct stores achieved over several years, suggesting that growth will accelerate even further after the official opening.

Given that the total number of farms supplying to the existing seven direct stores is 421, the fact that 153 farms are already supplying to the Munsan branch alone is a remarkable achievement. Over the past two months, these farms have supplied as many as 687 varieties of fresh produce to the store.

Of these, 104 are agricultural product suppliers, accounting for 75% of all suppliers, while eight are livestock and fisheries suppliers, and 41 are processed goods suppliers, including those who supply sauces and other products.

Farmers directly sort, wash, and finish small packaging of the agricultural products produced on the same day before shipping. Provided by Paju City

The shipment system for fresh produce involves farmers harvesting crops the previous afternoon or early in the morning, then directly selecting, washing, and packaging the products before delivering them to the direct store, where store staff handle sales on their behalf. The sales commission is 12%, and there are no additional promotional or entry fees.

Farmers who previously had no sales channels other than self-consumption or temporary stalls at traditional markets are now highly encouraged simply by having a place to sell their produce as if it were their own store.

Shin Sunja, a 70-year-old farmer who set up a small garden in the remote area of Tanhyeon-myeon, Paju, initially to grow vegetables for her family's table, has now been farming for 18 years after discovering the joy of agriculture. She said with a bright smile, "Now I can finally feel the reward for all the sweat and hard work under the scorching sun and in the rain."

At the direct store, even if the quantity and variety of daily harvests fluctuate, farmers are never refused delivery. Farmers can set their own prices and decide how much to supply, which greatly enhances their sense of pride and accomplishment.

In the past, Shin frequently had to let her produce rot because there was no sales channel, but since she started supplying to the local food direct store two months ago, she has delivered products to the store every single day, becoming the top seller among the 153 suppliers.

Although farmers set their own prices, the absence of intermediary distribution means producers can earn sufficient income, and consumers benefit from prices as low as those at large supermarkets, which is the greatest advantage of local food.

Consumers have also highlighted various unique appeals of local food according to their preferences.

Oh Kyunga, a 45-year-old resident of a nearby apartment who shops here once or twice a week, said, "Every time I come, I discover new types of produce on the shelves, which has made grocery shopping much more enjoyable."

Bird's-eye view of the local food complex center. Scheduled for completion in 2026. Provided by Paju City.

The successful start of the Munsan branch clearly shows the direction Paju City should take. Paju City plans to establish a local food complex center in Unjeong New Town, where demand for local food is high, and link it with the Munsan branch. The city will also cooperate with local agricultural cooperative direct stores to solidify a local food distribution network that covers the entire city.

Paju City Mayor Kim Kyungil stated, "Local food is a valuable asset for Paju, a city that combines urban and rural characteristics. By revitalizing local food, we will innovate the distribution structure of local food, directly connect rural producers with urban consumers, provide farmers with stable sales channels and increased income opportunities, and supply citizens with fresh local food. In doing so, we will create a healthy local economic ecosystem where money circulates evenly throughout every corner of Paju, invigorating the entire regional economy."

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