– Installation of an intelligent production distribution center (Smart APC) grafted with artificial intelligence (AI) and robot technology, modernization and scale-up of distribution in production areas –
– Full digital introduction of local distribution, establishment of data-based local distribution center (APC) operating system –
– Improving distribution structure centered on items, raising consumer awareness by branding agricultural products –
North Gyeongsang Province announced that it will build a distribution facility into an intelligent distribution center (Smart APC) to modernize the facility and focus on cultivating a marketing organization for each item that is scaled to transform distribution into digitalization.
Gyeongbuk-do will invest a total project cost of 2022 billion won from 2026 to 910 to build 22 intelligent production distribution centers (Smart APC), and introduce a data-based agricultural distribution system by fully introducing the production distribution center (APC) information support system.
In addition, the plan is to organize farmhouses by item based on the APC (Agricultural Distribution Center) and link them with marketing organizations to enhance the competitiveness of agricultural production areas.
An intelligent production distribution center (Smart APC) is a production distribution facility that automates tasks such as warehousing, storage, sorting, packaging, and shipping of agricultural products using advanced technologies such as robots, sensors, and communication, and connects with the front and rear industries from farms to consumers based on data accumulation and digitized information.
➣ Promote the scale of production areas centered on the intelligent production distribution center (Smart APC) base
Currently, 96% of the 70 APCs in operation in the province are outdated, and the agricultural product processing capacity and operational efficiency are low, so investment in facility modernization is urgently needed.
Gyeongbuk-do plans to install all APCs to be built in the future as smart APCs to modernize the facilities, and select representative APCs for each item in the city and county to handle scaled-up quantities and manage data.
Gyeongbuk-do will invest a total project cost of 296 billion won (government budget 119) to first install 2024 intelligent distribution centers (Smart APCs) by 11.
In addition, each year, the provincial government plans to support the existing APC, which has become obsolete, with artificial intelligence (AI) sorters, robot facilities, and information processing systems with its own resources to make the distribution facilities a base and advanced.
➣Introducing the data-based production distribution center (APC) operating system to utilize the front and back of production distribution
From 2024, Gyeongsangbuk-do will promote the digital transformation of distribution by introducing an information support system to the Provincial Distribution Center (APC) in the province.
Through this, it was revealed that the existing production distribution center (APC) operating system, which was operated manually and operated with the manager's experience, was reorganized into a data-based digital operating system to increase operational efficiency and utilize it in front and back of production and distribution.
It is possible to stably secure excellent quality agricultural products by improving the quality and productivity of agricultural products by providing customized consulting for each farm using management information such as size of the shipping farm, unit production amount, variety, and shipping time, and data of selected agricultural products.
In addition, market information can be provided in real time, and data-based marketing strategies can be established through data analysis of warehousing, sorting, warehousing, and settlement, and market dominance can be strengthened by enhancing consumer trust by providing quality and brand management and product information tracking services for agricultural products.
➣ Accelerate the improvement of the local distribution structure centering on items
In order to systematically foster the horticultural industry from this year, Gyeongsangbuk-do and cities and counties selected strategic items suitable for regional characteristics, such as agricultural conditions and production bases, and established and implemented the '5-year horticultural industry development (2023-2027) plan' that integrated the production and distribution sectors.
The policy is to intensively nurture producers of strategic items mainly in the main production areas, increase added value through commercialization at the APC (Production Distribution Center), and sell them to distributors through specialized product handling marketing organizations.
To this end, the marketing organizations in Pohang, Andong, Yeongju, Yeongcheon, Mungyeong, and Gyeongsan, which are currently operated in the form of the Agricultural Cooperative Federation, will establish cooperative joint business corporations by 2024 through investment from local Agricultural Cooperatives and foster them into specialized marketing organizations.
Gyeongju, Gimcheon, Sangju, Gunwi, Uiseong, Cheongsong, Cheongdo, Goryeong, and Bonghwa, which are operated in the form of cooperative joint business corporations, plan to expand the handling of specialized agricultural products and strengthen the exclusive shipment system through vertical integration of agricultural product shipments in the form of a farmhouse-production center (APC)-marketing organization.
➣ Raising consumer awareness of 'daily' brand agricultural products
Since 2016, Gyeongbuk, the largest producer of fruit trees in the country, has developed and operated a provincial integrated fruit brand 'daily' for four items: apples, peaches, plums, and grapes.
Gyeongsangbuk-do has been concentrating on resolving market competition among cities and counties by allowing integrated brands to be jointly used by cities and counties.
In particular, quality selection criteria such as weight, sugar content, and color were prepared to ensure that only agricultural products of the top 50% or more of the produced quality were shipped.
In addition, through thorough quality control and differentiated marketing, the number of 'daily' launch organizations expanded from 2016 organizations in 31 to 2022 organizations in 62, and sales increased from 214 billion won to 838 billion won during the same period, showing an average annual growth of 60%.
In 2022, it exported $651 million to China, Vietnam, the United States, and Canada.
* daily 출하액/출시조직 : ‘16년)214억원/30개소→‘18년)600/45→‘22년)838/62
In addition, by cultivating farmhouses specializing in 'daily' brand agricultural products and establishing a system that can monitor the entire process from production to distribution to consumption, farmhouse management consulting will be strengthened, such as thorough history management and distribution of standard cultivation manuals, to focus on enhancing consumer awareness as premium brand agricultural products.
Kim Joo-ryeong, Director of Agricultural and Livestock Distribution Bureau of Gyeongbuk Province, said, “The great transformation of agricultural product distribution begins with the Intelligent Mountain Distribution Center (Smart APC).”