the 9 th asia-pacific cooperative ministers conference consumer co-op build organic food clusters...

The 9th Asia-Pacific Cooperative Ministers Conference

Consumer Co-op Build Organic Food Clusters

iCOOP KOREA Chairperson, iCOOP Consumer Activities

Oh, Mi-yeaFEBRAURY 28, 2012

The Status of iCOOP KOREA

• Established in 1998. :Started as a Business Alliance in which both consumers and producers participated.• Consumer Livelihood Cooperative Act enacted.• In 2002, local co-ops’ s coalition has launched as

iCOOP Association of Consumer Co-operatives (now iCOOP Consumer Activities).

• In 2008, marked the 10th anniversary of iCOOP KOREA.• Joined the ICA in 2008.• iCOOP Union started with approval of the establishment in 2011 under revised Consumer Livelihood Cooperative Act.

iCOOP KOREA’ s Chronicle

iCOOP KOREA

1. Encourages sustainable production.2. Respects people and labor through protecting eco-friendly and

local farming.

Core business value: Ethical Consumerism

iCOOP KOREA

The meaning of “i” - individual - ideal - innocence - innovation

Growth in Annual Turnover (100mln KRW) and Membership

iCOOP KOREA

In 2000: 15 primary co-ops 2,470 individual membersIn 2011: 75 primary co-ops 155,705 individual members

•There are over 630,000 membership, 391 primary co-ops, 6 consumer co-op unions in Korea as of December 31,2011.

iCOOP KOREA’s Group Structure

• iCOOP Union• iCOOP Consumer

Activities• Mutual Aid Society for

Enhancing Korean Agriculture

• ATF (Korean Certification of Distribution for Eco-friendly food Association)

• iCOOP Cooperative Institute

• iCOOP Seed Foundation…

10 organizations

• iCOOP Association of Producer Group

• iCOOP Organic Food Supply Co,. Ltd

• iCOOP Livestock Products Co,. Ltd

• Co-op Bakery. Ltd…

9 organizations

iCOOP KOREA

Main Businesses of iCOOP KOREA

iCOOP KOREA

Many primary co-ops in iCOOP KOREA have their own co-op center as a community space

Eco-friendly Organic Food Clusters

and iCOOP Valley Project

Eco-friendly Organic Food Cluster and iCOOP Valley Project

For new future of cooperation and coexistence

Eco-friendly Organic Food Clusters and iCOOP Valley Project

Pioneer a new ground for domestic organic food business by co-op movement, Goesan Cluster

Location Chilseong-myeon, Goesan-gun, Chungbuk

Composition Eco-friendly organic food cluster: the food processing complex

iCOOP Valley: an ecological space providing eco-friendly orchards, stock farms, ponds, wildflower gardens, herb farms, an eco-friendly town and a school, working and living quarters

Area 628,497 ㎡

Industrial complex land 221,983 ㎡

Supporting facilities 71,975 ㎡

Public facilities 334,539 ㎡

Project Period 2007 – 2015

Investment Scale

Over USD 178 million


For new future of cooperation and coexistenceSchool

Hospital

Village

Orchard

Stock Farms

Logistic Center

Processing Companies


Cluster Development Project Implementation Progress

Dec 2007 Cluster investment MOU signing between iCOOP Solidarity of Consumer Cooperatives (now iCOOP Union) and Goesan-gun, Chungcheongbuk-do

Aug 2008 Held Eco-friendly Organic Food Cluster Committee launching ceremony

Oct 2009 Completed land purchase where will be main site of Eco-friendly Organic Food Cluster

Held the event of walking on the Cluster site land during iCOOP KOREA Harvest Festival

Mar-Jul2010 Developed Cluster Industrial Complex Develop Plan [draft]

Jun 2010 Held the event of Walk for Cluster Site Land by iCOOP members

Feb 2011 Cluster Industrial Complex Plan evaluated by local government vetting committee, and notification of approval

May 2011 Held the groundbreaking ceremony

2012-2013 Started the groundwork


MOU Signing Ceremony The groundbreaking ceremony


Gu-rye Natural Dream Park

A pilot project of cluster plan

26 eco-friendly food and native wheat processing companies, logistic and tour center will gather in the 149,336 m² park

May 2012: Completion of Korean native wheat ramen manufacturing factoryJune 2012: Completion of CS Logistic center Dec. 2012: Completion of all facilities


Reasons for the Cluster Project by iCOOP KOREA

To overcome the low profitability of agricultural production and direct transaction business

A need for innovative cost-reduction

A need for developing food brand with high reliability

To present a new model for reviving agriculture

Resident Briefing on Cluster Industrial Complex Plan

To overcome the low profitability of agricultural production and direct transaction business

A need for innovative cost-reduction

A need for developing food brand with high reliability

To get added-income through creating added-value from their products for farmers and present a new model for reviving domestic agriculture

To rediscover blessing of nature and to pass down agro-culture in rural community by developing Green tourism

Our Desired Effect is a increase of 50,000 members a year by the project.


Why are these clusters 'innovation' for us?

The project fund is raised by the three stakeholders : consumer members, producers, employees

No. of Investors No. of Accounts Total Amount

3,087 4,439KRW 20,876,825,621

(USD 18 million)

Cluster Fund Statusas of September 19, 2011

(source: iCOOP Mutual Aid Society for Korean Agriculture)

• The first fund-raising goal of raising 30 billion KRW was accomplished within only three years.• primary producers are also participated in the form of joint investment in processing companies and logistics center through iCOOP Association of Producer Group.

The co-operative 3rd Principle ‘Member Economic Participation'



To develop a consistent production / processing / distribution / experiential tour system

• more advanced and sophisticated structure to create the best food brand and maximize the integration effect to lower the production cost.

• transparent manufacturing process by checked consumers participating in cluster-experiential tour



Contribution to local communities



To present an alternative life-style

excessive urbanizationin S.Korea

•high housing cost•high energy consumption•environmental pollution

•lower energy consumption by a short-distance life zone

•lower environmental pollution through population dispersion to rural

• a abundant lifestyle by enjoying much more community-life



Renewable energy use & eco-friendly architectural construction

∙ Being in harmony with ecosystem

∙ Using of renewable energy through solar panel, geothermal energy and biomass ∙ Develop eco-friendly material buildings that blend well with landscape


The Event of Walk for Cluster Site Land in Goesan-gun

“The cluster project shows a perfect example of business with a sense of ownership” - Seung-gyun, No, chairperson of Gu-rye Gun Council


The event of Walk for Cluster Site Land in Goesan-gun

“I invested to the cluster project to enjoy my community-life in old age in this iCOOP Valley”- Min-Hyon, LEE, member of iCOOP KOREA

iCOOP Festival in Goesan-gun


Near Future Plan of the Cluster Project

• Plan to have 40 processing companies operating in the cluster (30 companies signed to move in the cluster up to now )• Cold storage center construction is expected to begin in 2012• All factories start to build in 2013 and operate from late in 2014• Completion of residence area from 2015 to 2017

The site of the cluster and valley in Goesan-gun

Processers and staffs

Thank you all for your listening!!

* 2011 Annual Report : http://lemonhee.cafe24.com/web/english.pdf * http://www.icoop.or.kr for more information about iCOOP KOREA

[email protected] person: Ms. Lee Ju-hee

the 9 th asia-pacific cooperative ministers conference consumer co-op build organic food clusters...

Documents

membership icoop korea

icoop valley project

status of icoop korea

th anniversary of icoop

icoop valley project

icoop livestock products

coexistence slide

domestic organic food