Gov't plans large-scale greenhouse complex to boost farm exports

By Lee Joon-seung
SEOUL, Nov. 24 (Yonhap) -- The government aims to support construction of a
large-scale, high-tech glass greenhouse complex next year to help increase South
Korea's agricultural exports, a senior policymaker said Monday.

The plan calls for 200 billion won (US$133 million) to be injected into the
construction of 50 hectares (ha) of greenhouses that are vital for enhanced
productivity, Agriculture Minister Chang Tae-pyong told reporters.
He said five glass greenhouses made with Dutch technology, covering 10 ha each,
are planned to be constructed on reclaimed land or other state-owned property.
While Korean greenhouses are usually temporary structures made from wire and
vinyl, the semi-permanent glass greenhouses are more energy efficient,
translating into lower production costs and two to three times more output than
that of vinyl greenhouses.
The area where the new facilities are to be built will be designated as an
"agricultural exports zone" that could be offered special benefits.
"For economy of scale, it may be best to build the greenhouses in one area," he
said, adding that Seoul may consider passing a separate law to help farmers who
grow crops there.
He said that food grown in the zone will be sold abroad, although it can also be
used to meet local demand for high quality produce, which is usually filled by
imports.
"Many food processing companies have said they will buy from local suppliers if
the products meet certain quality standards," the official said.
The government set this year's farm export target, including processed food, to
$4.5 billion, with the target rising to $10.0 billion in 2012.
The minister then said that if the plan is successful, the government may build
100 ha of glass greenhouses every year for two to three years to bring the
country's total to around 500 ha.
This, he said, could create "natural" demand for domestic construction expertise
and materials development for these structures that are currently imported from
the Netherlands. The ability to locally build these structures will translate
into lower costs.
"No details on how the greenhouses will be run have been reached, but they may be
leased to farmers who will pay the government or private owners annual user
fees," the official said.
"This arrangement can naturally lead to the farmers buying the glass greenhouses
in the long run without worrying about the very high cost of construction," he
said.
At present, a glass greenhouse that covers one hectare costs over 3 billion won
to build. The structures that stand 6.5 meters high feature automated
ventilation, as well as heat, humidity and light control.
Chang then said that funds could come from the government, public companies like
Korea Rural Community and Agriculture Corp. and the private sector, with support
from the government.
In the case of the latter, government aid could be provided in the form of
investments, contributions, with the regional authorities also pitching in with
funds.
He said due to fiscal constraints, state support will probably not exceed 50
percent of funds needed.
Besides the greenhouse complex, Seoul will help build related infrastructure
necessary for exports like cold storage facilities and transportation systems,
and is moving to work with the Korea Trade-Investment Promotion Agency (KOTRA)
and Korea International Trade Association (KITA) to set up an overseas "export
network" for local farm and food products.
"The plan is to augment the 11 branch offices of Agro-Fisheries Trade Corp.
located in eight countries," the policymaker said.
The state-run corporation dedicated to farm export promotion currently covers
Japan, the United States, China, Russia, the European Union, Hong Kong, Taiwan
and Singapore. Cooperation with KOTRA and KITA could fuel exports into the Middle
East, Latin America, Southwest Asia and central Asian countries like Mongolia.
yonngong@yna.co.kr
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