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Expected Effects of GAP System Introduction

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Expected Effects of GAP System Introduction06



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Title Expected Effects of GAP System Introduction
Similar Titles
Material Type Report
Date 2015
Language Korean
File Type Theme
Subject Industry and Technology < Agriculture
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Abstract

Sub-Theme 2 | Financial Crisis and the Role of Deposit Insurance System​





1. Expected Technical Effects



① Construction of Traceability System Using Radio Frequency Identification (RFID)




RFID technology enables the detection and identification of certain products, transmitting the information wirelessly from a remote location. The Rural Development Administration provides consumers basic information about the producers, the collective sites, and types of facility materials and usages. Such data could be installed in a RFID chip alongside other information such as country of origin, manufactured year/month/day, sales expiry date, distribution procedures, and delivery date–which reduces the workload for the producers who would otherwise have to attain this information on their own. This technology is especially convenient for the older farmers participating in the GAP certification process, as well as to transmit the broad production history to consumers. ##3D_LAYER##(Jong Deuk Kim, 2004)##3D_TEXT: Kim, Jong Deuk (2004), “The industrialization plans of RFID for the use of new logistics information systems”, International Commerce and Information Review Vol.6 (2), 171- 191##3D_LAYER_END##



② Application of Integrated Pest Control Methods (IPM) and Integrated Fertilizer Management (INM)



IPM is the technology that reduces pests or maintains levels that minimize economic costs by using various and complementary control technologies based on the knowledge of the crops, pests, and natural enemies. INM sets out to maintain levels of productivity while minimizing the environmental consequences of fertilizer use by assessing the total needs of fertilizer and ensuring application of the appropriate amount, as well as supplementing the effects with natural or other artificial devices. By virtue of the INM, use of agricultural chemicals or chemical fertilizers are minimized, and various outgrowths obtainable in the agri-food production processes are recycled by utilizing the agricultural by-products and reducing the amount of fertilizer input. ##3D_LAYER## (Sang Yo Kim, 2006)##3D_TEXT: Kim, Sang Yo (2006), “Case Studies of Good agricultural practices in business and development challenges”, Dankook University master’s thesis##3D_LAYER_END##



 
[Codex GAP Guidelines]



 





































Classification Codex GAP Guideline
Production Base

(soil, water quality, atmosphere)
• Soil, water quality standards of individual country
Sanitation Management and Pollution Control Facilities • Toilet facilities, washing facilities

• Compost storage facilities

• Anti-pest facilities installation
Pesticide, Fertilizer, Sanitation Management During Cultivation • Input standards for pesticide, fertilizer

• IPM, INM, use of natural enemy

• Sanitation management program for workers
Sanitation Management During Harvest Work • Washing the working machines (delivery vehicle)

• Use of chemical free materials

• Prevention of pollution from livestock, etc.
Post-harvest Sanitation Management (packing, delivery, blending) • Washing water: drinking water criteria

• Facilities easy for washing, cleaning

• Health checkup of workers

• Low temperature storage facilities, refrigerator car
Hazardous Ingredient Inspection (remaining pesticide, heavy metals) • Inspection by certified institutes
Production Management and Training for Traceability • Regular training for participant farmers

• Supply of producer, management guidebook




Source: ##3D_LAYER## Young Man Lee and others, 2005.##3D_TEXT: Lee, Young Man, Kang, Jung Il, Hwang, Gap Chun (2005), “Necessity of introducing the GAP system and future policy direction”, Korea Rural Economic Institute, Journal of Agriculture & Life Sciences Vol.39 (1)##3D_LAYER_END##





2. Social Expected Effect



① Contribution to the Improvement of Domestic Agri-food Safety




The foods produced under the GAP system could be comprehensively managed at every stage–from soil and water management involved in the production to the natural and wildlife protection of the farmlands–giving producers a greater sense of responsibility for the planting methods of the crops, pesticides and fertilizer management, as well as the pre- and post-harvest treatments. Such a process would ensure a steady supply of good quality, healthy and safe food, increasing consumer confidence. ##3D_LAYER## (Ministry of Agriculture, Food and Rural Affairs, 2003)##3D_TEXT:Ministry of Agriculture, Food and Rural Affairs (2003), “GAP explanation”##3D_LAYER_END##



② Enhanced Consumer Awareness of Agri-food Sanitation and Safety



Consumer interest in a safe dietary lifestyle has grown recently with improvements in economics and standards of living. The number of consumers desiring to purchase safe agri-food is also increasing. The GAP system responds to these needs for promoted vigorous safety and hygiene control from production to selection, as well as cleaning to packaging. Safety can be confirmed transparently from production to consumption with traceability systems implemented at all stages. Therefore, GAP can enhance consumer awareness on agri-food hygiene and food safety as a system to lessen consumers’ anxiety. ##3D_LAYER## (Byeong Seok Kim, 2012)##3D_TEXT: Kim, Byeong Seok (2012), “Activation plan for good agricultural food management system”, Agrochemical news magazine, 33 (9) 18-21##3D_LAYER_END##



③ Protection of Agricultural Environment



The GAP system comprehensively and systematically manages not only the production factors such as soil, water, seeds, pesticides, and fertilizer, but also the welfare and health of workers participating in the safety management and production processes of cultivation, harvest, and post-harvest activities. Such a system enables agriculture to be permanently maintainable by protecting the agricultural environment. ##3D_LAYER## (Ministry of Agriculture, Food and Rural Affairs, 2003)##3D_TEXT: Ministry of Agriculture, Food and Rural Affairs (2003), “GAP explanation”##3D_LAYER_END##





3. Economic Expected Effects



① Purchase Increase of GAP Certified Agri-food due to Consumer Preferences




The consumer is willing to pay more for safer foods compared to ordinary products. In fact, 61% of those surveyed indicated a willingness to pay a premium for food items with the implementation of the GAP system. The results of his research indicate that the GAP system is suitable for satisfying the purchase needs of modern consumers who are sensitive to the safety quality of food. ##3D_LAYER## (Jae Hong Park and others, 2005)##3D_TEXT: Park, Jae Hong, Yoo, So Yi (2005), “A Study of Willingness to Pay for Quality Control associated with Food Safety–Good Agricultural Practice”, Korea Journal of Agricultural Management and Policy Vol.32 (1)##3D_LAYER_END##



 
[Consumer Willingness to Pay under the GAP System]



 






































Variables Definition Costs (Won)/People (%)
Amount willing to Pay Willingly Payable Amount for the Safe Product if Ordinary Product Costs 1,000 Fruits 1,658 Won
Green and Fruits 1,766 Won
Vegetables 1,568 Won
Medicinal Herbs 1,961 Won
Consumer Preferences Execution of the GAP System for Production and Distribution of Safe Agri-food Preferred 242 (61.4%)
Not Preferred 125 (38.6%)




Source: ##3D_LAYER## Jae Hong Park and others, 2005.##3D_TEXT: Park, Jae Hong, Yoo, So Yi (2005), “A Study of Willingness to Pay for Quality Control associated with Food Safety–Good Agricultural Practice”, Korea Journal of Agricultural Management and Policy Vol.32 (1))##3D_LAYER_END##






② Associated with Rural Tourism



Although not yet fully executed, rural tourism could provide the possible link with local tourism resources between local specialty foods and implementation of the GAP System. The first such collaboration in Korea is that between green tourism and an oriental medicinal herb tour designed to foster GAP growth and good medicinal herbs in northern Kyungsang Province.

 




4. Contributions of GAP system



At present, GAP is evaluated as a reasonable system for supplying final agri-food products that are ensured for safety by controlling various hazardous elements that may exist in the farming environment, cultivation process, during harvesting and the treatment processes that follow, as well as during the storage process.



① Quantitative Performance



The Korean Rural Economics Institute surveyed the status of GAP agri-food certification awareness and recognition among farmers, which revealed that among those surveyed, 20.9% were GAP certified. A substantial number of farmers were optimistic about future GAP agri-food sales, and 63.5% of farmers expected the sales volume of GAP agri-food to increase. Only 9.4% forecasted a decrease.



 


[Future Sales of GAP Agri-food]


(Unit: Person (%))

































Classification Proportion Average Increase Rate
Forecasted Increase

5 years Later
282 (63.4) 33.5
Forecasted Decrease

5 years Later
42 (9.4) 32.0
Same as the Current Level 121 (27.2) -
Total 445 (100.0) -



 


Source: ##3D_LAYER## Ji Hyun Choi and others, 2012.##3D_TEXT: Choi, Ji Hyun, Song, Woo Jin, Hwang, Yoon Jae, Lee, Dong So (2012), “Mandatory measures of GAP & HACCP management certification system”, Korea Rural Economic Institute##3D_LAYER_END##




 


② Qualitative Performance



According to the survey, the status and awareness of GAP agri-food certification conducted among famers by the Korean Rural Economics Institute as seen in [Figure 3] indicated that only 21% rated their participation in GAP as “unsatisfactory,” 35% answered “satisfactory,” and 44% were ambivalent. The survey concluded that the overall level of satisfaction with the GAP certified farmers was not low.



 


[GAP System Participation Satisfaction Levels]





 


Source: ##3D_LAYER## Ji Hyun Choi and others, 2012.##3D_TEXT: Choi, Ji Hyun, Song, Woo Jin, Hwang, Yoon Jae, Lee, Dong So (2012), “Mandatory measures of GAP & HACCP management certification system”, Korea Rural Economic Institute##3D_LAYER_END##





The primary reasons for satisfaction in the GAP system were mainly the resulting higher safety levels of agri-food (42.9%), as well as the higher brand value of agri-food (34.4%), as seen in [Figure 4]. External image and credibility factors, then, are key to the profitability of agri-food by enhancing its image and safety reliability through the proper management of the hazardous elements and the differentiation that such a systematic program promises when compared to other items.



 


[Reasons for Satisfactory Participation in GAP]





 


Source: ##3D_LAYER## Ji Hyun Choi and others, 2012.##3D_TEXT: Choi, Ji Hyun, Song, Woo Jin, Hwang, Yoon Jae, Lee, Dong So (2012), “Mandatory measures of GAP & HACCP management certification system”, Korea Rural Economic Institute##3D_LAYER_END##



 

While there is room for growth in terms of price differentiation, the supply of agri-food has been expanded. A rise in the level of consumer awareness is expected, and 72.4% had planned to purchase GAP certified agri-food, contributing to the enhancement of the safety of agri-food (The Korean Rural Economics Institute, 2012). The GAP system established a sanitary agri-food system for farmlands, which had lacked any concept and awareness of safe agri-food in the past. There is presently more recognition among famers of the safety of agri-food. In addition, the GAP system is operated by farmers who directly participate in and, furthermore, enable the building of healthy farmland and efficient and consistent agricultural development within the macro agricultural infrastructure.