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Policies for Nurturing Greenhouse Horticulture and Related Industries

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Policies for Nurturing Greenhouse Horticulture and Related Industries06



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Title Policies for Nurturing Greenhouse Horticulture and Related Industries
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Material Type Report
Date 2015
Language Korean
File Type Theme
Subject Industry and Technology < Agriculture
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Abstract

Sub-Theme 1 | Policies for Nurturing Greenhouse Horticulture and Related Industries



 
In Korean agriculture, the term ‘White Revolution’ was derived from the extensive use of plastic films in agriculture, which turns the color of land into white due to the large acreage under protected cultivation. To produce crops in greenhouses covered by glasses or plastic films, there are many things needed other than crop cultivation technology. Consumer markets and purchase power to buy agricultural products are necessary to industrialize protected cultivation. The major driving force for the success of protected cultivation in Korea was to purchase greenhouse vegetables in winter in high prices, in parallel with increased national income. The increase in national income came from economic growth as a result of the success of a series of ##3D_LAYER## five-year National Economic Development Plan (NEDP).##3D_TEXT: Rice self-sufficiency was the most important achievement in agriculture in this period. Related to ‘White Revolution,’ the most important change was that bamboo frames of greenhouses were replaced by steel due to the mass production of steel from Pohang Steelworks and protected cultivation area rapidly increased. It was also notable that Korea suffered from the first oil crisis in 1973 but overcame this with strong export-oriented policy. The initial goal of the third five-year NEDP was 8.6% of economic growth rate but 10.1% of growth was achieved; as a result, per capita GNP increased from $320 in 1972 to $818 in 1976. This economic growth led the public to purchase winter greenhouse vegetables more than before and allowed rapid expansion of consumer market. Greenhouse vegetables made a lot of money and reinvested this money in expanding their greenhouses. They produced more greenhouse vegetables and all of them were purchased by consumers with increased purchasing power due to increased income, showing virtuous circles.##3D_LINK:https://www.kdevelopedia.org/resource/view/02201603080143644.do##3D_LAYER_END## The domestic supplies of necessary greenhouse materials, frames that build greenhouse structure and plastic films that cover the structure, were possible at the early stage of protected cultivation in Korea. 



 


1. Increase in National Income by Successful Five-year National Economic Development Plan

 


Most important factor of the rapid progress in Korea’s protected cultivation called ’White Revolution’ was the formation and expansion of consumer markets for winter vegetables accompanied by increased national income. It was possible due to the virtuous cycles that farmers made more money by selling greenhouse vegetables in high prices, they expanded, with increased income, their greenhouses and produced more greenhouse vegetables, and consumers had purchasing power to buy more greenhouse vegetables from 1970s. The expansion of the consumer markets was due to increase in national income which was the result of a series of five-year NEDP. The summery of purposes and results of five-year NEDP is described below.



 


2.  Integration of Increasing Income Program for Farmers and Fishers and the New Community Movement

 


Korean government also established the ##3D_LAYER##RDA##3D_TEXT:Rural Development Administration##3D_LINK:http://www.rda.go.kr/foreign/ten/##3D_LAYER_END## in 1962 and enacted laws to reinforce research and training functions of RDA to increase food production. After the success of Green revolution in late 1970s, however, there were no changes in established agricultural system but special instruction from President Park was announced to increase farmer’s income. Since special instruction from Park overrode laws or administrative actions ##MORE_LAYER_BOX## The government encouraged farmers and fishers to improve poor condition of rural area by themselves at the beginning of the new community movement. The movement was to make a comfortable living by diligence, self-reliance, and cooperation and to pave the way for increasing national income by improving environment and establishing self-supporting villages. Initially, various policies in the movement were more focused on the improvement of environment that were not related to increasing national income and, thus, those policies were replaced with increasing income policies. In an effort to replace policies, the IIPFF was changed to the SIISP. The program was started to make up for the weak points in the IIPFF by increasing government support to increase production of agricultural and marine products and to generate capital in the rural sector by expanding side businesses of farmers and constructing the new community factories. As shown in Figure, the effect of integrating the IIPFF and the SIISP was very significant.



 


[Background information of the new community increasing income special program]

 


##MORE_LAYER_BOX_END## at that time when Korea was under the authoritarian administration, the IIPFF had a strong driving force at the beginning. ‘White Revolution’ and its policy ground were started from the first IIPFF (1968-1971). Among projects in the first IIPFF, the greenhouse vegetable production project was effective in increasing farmer’s income and the project was continued in the second IIPFF that started from 1972. The second IIPFF was merged with the new community movement ##MORE_LAYER_BOX##

 
[The start of new community movement (called Saemaeul movement in Korea) ]

 









##3D_LAYER## [Video] ##3D_TEXT:Korea Saemaul Undong Center ##3D_LINK: https://www.kdevelopedia.org/Resources/industry-technology/koresaemaul-undong-center--05201811010150581.do##3D_LAYER_END####MORE_LAYER_BOX_END## in 1974 and the name was changed to the SIISP.



 


3. Nurturing of Greenhouse-related Industries and Expansion of Cultivation under Structure 

 


(1) The Development of Petrochemical Industry and Agricultural Plastic Production and Distribution: Protected cultivation, that is growing crops in greenhouses, is not possible without agricultural plastics since greenhouses are usually covered by polyethylene films. Petrochemical industry is necessary to produce agricultural plastics and their basic raw material is naphtha that is byproducts during the process of refining oil. The construction of the Ulsan oil refinery was begun in 1962 and completed in 1964.

 


(2) The Development of Steel Industry Leading to the Improvement of Greenhouse Structure: The government invested the construction of the first blast furnaces of Pohang Steelworks (now ##3D_LAYER## POSCO ##3D_TEXT:Website##3D_LINK:http://www.posco.co.kr/homepage/docs/eng6/jsp/s91a0000001i.jsp##3D_LAYER_END##) ##MORE_LAYER_BOX##In 1973, Pohang Steelworks was completed producing 100,000 ton of crude steel and took the lead in the economic growth of Korea. As production of crude steel increased, a shift from bamboo to steel frame of greenhouse was carried out simultaneously. As shown in [Figure 3], bamboo frames were rapidly replaced by iron frames. This paved the way to a leap forward in horticultural industry. At that time, Korea was experiencing a shortage of iron ore and they were imported from other countries. Beside, most of the crude steel from Pohang Steelworks has alternative uses in other industries. However, farmers and agricultural organizations demanded the production of steel coil and small manufacturers produced greenhouse pipes using steel coil and then bamboo greenhouse was replaced by steel.



 


[Chronological change in greenhouse frame materials (Bamboo/steel pipe) in Korea]

 


##MORE_LAYER_BOX_END## by enacting the Nurturing Steel Industry Act in 1970 and steel production system was greatly improved. By constructing the two to four blast furnaces, structural imbalances in steel manufacturing were improved and small and deteriorated facilities were renovated. Self-sufficiency of upstream process, that is, the productivity of molten metal, was greatly increased and this led to a rapid growth of steel industry of Korea. It also provided a foundation for rapid development of greenhouse horticultural industry, which is now internationally competitive.

 


(3) The Development of Fertilizer and Agrochemical Industry Related to Horticultural Crop Production in Greenhouses: The Korean government distributed chemical fertilizers to increase food production from 1950s to 1960s and farmers preferred to use those fertilizers since they act faster and are easier to use than organic fertilizers such as compost and manure.