The aim of this study is to geographically describe the fruit and vegetable supply systems in South Korea and to evaluate the role of local supply systems which coexist with expanding nationwide supply systems. The study focused on Omgun wholesale market, located in Busan, the second largest city in South Korea. Busan was selected for this study because of its importance as the second largest city, and, since it is located at the other end of the country from South Korea's capital and largest city, Seoul, it is less likely that the latter, which receives fruit and vegetables from all over the country, will have a major influence on Busan's supply system. Moreover, since several detailed analyses have already been undertaken on Seoul's supply system, it is possible to make a comparison in order to obtain a more comprehensive picture of South Korea's distribution systems.
In this study, we obtained data on transaction values and volumes on ten items: cucumbers, potatoes, water melons, radishes, onions, pears, garlic, Chinese cabbages, grapes and apples. Geographical patterns of their production locations were constructed from Provincial statistics provided by South Korea's Ministry of Agriculture and Forestry. The locations of the suppliers to Omgun market were then plotted to determine the shipping sphere for Busan city. The sites of all of the national producers and suppliers to Seoul were also determined, and then the features of Busan's distribution system were analyzed. The data also allowed us to determine the correlation between monthly fluctuations in supplies, arrival volume and price. Data from the Agricultural and Fishery Marketing Corporation allowed us to compare Seoul and Busan markets for differences in suppliers' locations, seasonal changes and prices.
From the size of shipping spheres for many items, we found that, whereas Seoul market's supply system extends nationwide, Busan's system extends mainly locally, being focused within the Province of Gyeongsanagnam-do. Omgun market's suppliers of Chinese cabbages and radishes, which have the two largest transaction volumes of the ten items, are particularly small and are all located within the Province of Gyeongsangnam-do, yet provide a steady, year-round supply. Prices are more stable in Omgun than in the Seoul market, and so the local supply systems in Geongsangnam-do can be regarded as working effectively.
In a previous study on Japan's fruit and vegetable supply system, Araki described the agro-economic changes taking place in response to the growth of a few large producers and the decline of many small producers, which occurred during the formation of a nationwide supply system. He also re-evaluated supply systems between small producers and small consumers to assess the possibility of revitalization of the agricultural industry in Japan. It is interesting that, in Omgun market, major items, including Chinese cabbage, that occupy the largest transaction volumes, are supplied through a network of small producers, despite Busan's population being about 3.6 million. Actually, compared with the Seoul market, prices are low and stable in the Omgun market, even in pre-harvest months. These findings indicate that local supply systems backed by small-scale producers can meet the demands of large cities. Another advantage is their contribution to the economic sustainability of rural areas. In addition, because the producers are small and dispersed, in contrast to a handful of large producers tied to nationwide supply systems, there is a low risk of the supply system being disrupted by bad weather or diseases and pests. Is it the reduced risk that makes decentralization of suppliers sustainable, despite being expensive to run?
