The market for locally grown foods is growing fast, giving benefits to both consumers and farmers by lowering distribution costs, retailers said Friday.
E-mart, a leading supermarket chain, said its sales of local foods last year recorded 51.6 billion won (US$45.54 million), up from 300 million won in 2008, when they were first introduced on shelves. Sales this year to September already reached 50.5 billion won and are headed to a 30 percent increase from last year in total.
Local foods are produced within 50 kilometers, guaranteeing freshness and bringing profits to regional economies. Shorter delivery distances lower distribution costs as well.
"We cut out two stages in what used to be a six-phase distribution network. We are selling local foods at prices 10-20 percent cheaper by lowering the costs for distribution and middle margins through direct transactions," an E-mart official said.
In addition to local fruits and vegetables, the retailer plans to sell local fisheries and meats at its stores.
Lotte Mart started selling locally produced vegetables in September 2014. It logged a 95 percent increase in sales in the January-September period this year compared with the same months last year.
Company officials said they expect to more than double sales of local vegetables, currently 7 percent of the total fresh produce, to 15 percent. While the local foods business has focused so far on finding products and producers ready for supply, Lotte Mart will seek diversity and a sustainable supply of products beginning this year, they said.
"We are trying to distribute quality regional farm products nationwide," said Bong Won-gyu, a merchandiser of local vegetables at Lotte Mart. "We are marking efforts to build a sustainable structure for co-prosperity for locally grown produce."