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K-Food Newsletter

Special / The role of an advance guard in diversifying Korean agricultural export market, AFLO
Date
2019-11-29 09:49:12
Hit
1704
Email
choiyj@agrinet.co.kr

The Ministry of Agriculture, Food and Rural Affairs and Korea Agro-Fisheries & Food Trade Corporation(aT) are striving hard to diversify Korea's agricultural exports that are specifically concentrated in some countries. In this way, not only does the export grow, but it will also secure stable export conditions by branching out the markets. The young people who have a passion and competence in developing overseas markets are promoting Korean agricultural products in many countries serving as an expat. Hence, has looked into the activities of the Agrifood Frontier Leader Organization(AFLO), the pioneer of this role.

 

 

#Activity of AFLO members roaming the world

AFLO consists of agricultural export specialists who are dispatched to countries with export potential and conduct new market development activities such as local market research, identifying promising products and buyers, and export trading. Starting with 60 participants in 2017, a total of 260 members have been active with 100 in 2018 and 2019, respectively. They play a significant role in encouraging Korean agricultural products in 20 countries including Poland, Malaysia, Cambodia, India, Mongolia, Myanmar and Vietnam.

The AFLO members are not just focused on promoting Korean agricultural products, but they also provide local market information, export product promotion, and marketing the way the exporter desires who is matched with previously dispatched aT staff and pilot agents. Moreover, AFLO is exploring major buyers discovered through local market research by arranging buyer meetings for new products. In fact, more than half of the 100 frontier companies matched with AFLO have made their first exports to new countries, serving as local expatriates for Korean exporters. The activities of AFLO members are a much-needed task for small agricultural exporters who are in lack of overseas exports manpower.

They make Korean agricultural product catalogues designed for foreign buyers and distributors, in addition to promotional development and marketing plans for sale. And these efforts lead to actual export contracts. The members in Poland have successfully signed a contract for kimchi and ginseng products, while those in Taiwan have succeeded in exporting perilla oil.

The AFLO members said, “Among numerous overseas internship programs, it is interesting that AFLO is not just carrying out tasks but is also doing things like pioneering the market directly. One of the biggest draws is being on the actual scene that you can't learn from books or lectures.” That active AFLO work is fascinating. The future of AFLO members, who are striving to diversify the export market of Korean agricultural products with new ideas and marketing activities, is awaited.

 

#Hear from local AFLO members

 

Lee Byeong-ho from Malaysia

 

Malaysia is known as the bridgehead of Southeast Asia. Amidst the Muslim population, several ethnic groups such as China and India reside together in society. I chose Malaysia as I wanted to know the standing point of Korean agricultural products in the land of mixture of different races and religions. And I thought that if new products are successful, it would eventually spread out all over the world.

With the start of Korean wave including K-Pop and K-Beauty, Korea has impressed Malaysia. Such popularity has attracted attention to Korean agricultural products that ramyeon is exhibited on the entire shelves at one side at major Malaysian stores. Recently, processed foods such as tteokbokki, seaweed snacks, and banana flavored milk are also capturing the market. Personally, I believe health food and baby items are promising in Malaysia as it has the highest rate of obesity in ASEAN, and the younger generation is interested in health and beauty. In addition, many children can be seen in the streets and shopping malls. Finding new items to meet these potential demands is expected to be a major factor in entering the Malaysian market.

 

 

Yang Ye-eun from Mongolia

When I was a high school student in Korea, a Mongolian teacher came to my school as we had an agreement with the Mongolian government. During the cultural exchange activities with the teacher, I learned many things about the country. After that, I was fascinated and I wanted to be helpful in developing Mongolian market as an AFLO member.

Fortunately, Mongolia is very positive on Korean agricultural products. We held a consumer experience event for Korean watermelon, saesongi mushrooms, and cherry tomatoes, where the local people came to taste and asked where to buy the products. Also, local buyers at the meeting specifically wished to import products made from Korea if they were the same. Through such experience, I learned that the Korean brand itself has established a positive image in Mongolia. A promising Korean agricultural export to Mongolia can be fruit. Although it is less competitive in price compared to fruits, the quality and taste are superior. As local consumers are also aware of this fact, it has a great potential for export. Besides, Mongolia's consumer purchasing power has increased due to higher exchange rate. Accordingly, if distribution and marketing are conducted to target the upper middle class, we can expect some decent results.

 

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