The New Rice Policy of Korea aims to designate the agricultural cooperative as the principal concern in the management of sustenance grains and rice. The agricultural cooperative, which is so far lacking in rice sale business experience, has come to the point at which it must develop sales business in competition with merchants. The research was conducted in a village in Haenamgun Chollanamdo, a prominent rice production area of Korea, in which the Okchon agricultural cooperative has high management appraisal and large-scale rice management farmers. The first section shows how the Okchon agricultural cooperative, which has advanced by guaranteeing rice quality with contract cultivation, developed the rice business, which is known throughout the country as one of the most expensive rice brands. The economic slump and competition in the rice market after 2000 restrained demand for such expensive brands. This situation led to the diversification of sales in order to compete with other brands. The second section shows how farmers have converted to growing good quality rice. In addition to high-yielding varieties, the farmers who participate in the contract cultivation of the agricultural cooperative designating the farmers whose own more than 3 ha has become significant.
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