Market opening pressures farmers to accelerate modernization

He has become known as the man without a suit and tie, following the wishes of his boss, President Lee Myung-bak.

The president had thought the casual look to be more fitting for the nation`s minister for food, agriculture, forestry and fisheries to reflect the government`s commitment to working hand-in-hand with farmers to modernize the sector. Compared to major industries like information-technologies and automobiles, Korea`s agriculture industry is still in its nascent stages.

As much as the casual jacket replacing the suit served as a symbolic gesture a little after Minister Chang Tae-pyong`s appointment in August 2008, the nation`s top agriculture policymaker has demonstrated his undivided commitment to building the global competitiveness of an industry that is at a crossroads.

"I believe our farming sector is going to change drastically in the next five to six years, because our agriculture market is going to be much more open; the sector right now is far from ready to face the competition," Chang said in an interview with The Korea Herald at the minister`s office in the Gwacheon Government Complex.



Sooner or later to face greater market opening through the Doha Development Agenda under the World Trade Organization and free-trade agreements with leading economies like the United States and the European Union, it is now or never for Korea`s agriculture sector to start building its competitive edge.

Korean farmers feel anxious about having to compete with the expected influx of cheaper yet high-quality foods from advanced nations ranging from the United States to the Netherlands.

But Chang vows that the local farming industry would be ready for battle.

"We`ve embraced this moment as the time for opportunity," said the policymaker, who prizes precision and optimism. "I believe that people are naturally inclined to give their utmost efforts when a crisis hits," he stressed.

Chang`s challenges as policymaker are to transform an industry that is practically decades behind compared to that of advanced nations into a globally competitive one in terms of technologies, sophistication and entrepreneurialism.

"We`re in the beginning stages, but just by looking at the passion and devotion in some of our farmers right now, I believe we`ll see drastic changes in our rural industry sector even within three to four years," said the minister with a hefty management background at various departments, ranging from consumer policy to corporation tax, in the Ministry of Finance and Economy in the 1990s.

The average age of the population of Korean farmers shows the vast potential for reform and advancement and in one of the oldest industries. Of the country`s estimated 3.2 million farmers, 43 percent are believed to be over 65 years old, according to rural industry data. Of the total, only 6,500 of them can be considered "entrepreneurs," experts say.

With a master`s degree in economics from the University of Oregon and a rich experience in market-shaping policies, Chang may be an ideal figure to nurture a commercial instinct and lead the historic transformation of the domestic farming industry. The 60-year-old also manages his own blog aimed at helping him directly communicate with farmers and better understand their needs and issues. Adding to his humane appeal and creative capacity, he is also a poet.

His close aides and industry figures commend Chang for his round-the-clock efforts that involve regular visits to farms nationwide, reinforcing his commitment to orchestrating a smooth landing for a vulnerable sector.

But the policymaker modestly says he is not different from anyone else who could have been placed in his shoes.

"I don`t think I`m taking an innovative approach; I try to apply the right treatment after a thorough analysis, evaluation and diagnosis, just like how any other person would try to find the best solution by finding the truth," Chang elaborated, implying the need for objectivity. "We can`t be so emotional or sensitive because creating policies is science."

He admitted that some social groups still do not understand why the farming industry needs to advance, even if productivity sharply lags behind that of advanced economies like the Netherlands.

As an example, he cited that the marketed sow per year in Korea is 13.4, while it is 24 in the Netherlands. Asia`s fourth-largest economy has benchmarked most of its farming technologies from the Netherlands and Japan.

"Building competitiveness cannot be more important if our farmers want to survive," Chang said.

He emphasized that productivity needs to be maximized by securing innovative technologies needed for efficient production and developing value-added goods. The agriculture head also strongly suggested the need for professionalism.

To build the population of entrepreneurial farmers - the future path to sustainability --the government is aggressively providing support for research and development and other necessary support.

Amid expectations of the onslaught of imminent changes, the Lee administration has embraced agriculture as the country`s new economic growth engine. The ministry has set the ambitious goal this year of raising agriculture goods exports by 20.4 percent to $5.3 billion this year. Last year, the country achieved a record high of $4.4 billion, up 10 percent from the previous year. The goal has been set at $10 billion for 2012.

As part of the strategy to boost agricultural exports, the Lee government has also adopted the long-term vision of globalizing Korean cuisine. It aims to establish Korean food within the world`s top five cuisines by 2017. The five leading countries now are France, Italy, China, Japan and Thailand.

"A clean presentation and localization of our national dishes will be a key strategy," Chang said, noting that presentation covers everything from tableware to food design.

The government believes globalizing home dishes, however, taking a localized approach, would help raise exports of food ingredients, such as spices and sauces, by $3.5 billion by 2012, a significant jump from this year`s estimated $90 million.

Towards such aim, the government plans to establish a food industry cluster, similar to "Food Valley" of the Netherlands.

Ten to 20 years down the road, Chang believes Korea`s agricultural goods and its cuisine will have become globally popular for its healthy and sophisticated qualities, while business-savvy farmers will also be apparent.

"Our farm sector will have transformed into a highly productive and competitive industry, while the installment of an income stabilizing system would be minimizing the risks for eroding farmers` income due to a plunge in crop prices or crop damages," he said.

The chief also boasted the strategic geographical location of Asia`s fourth-largest economy for potentially increasing agricultural exports and exporting technological know-how, particularly with the neighboring emerging economies.

He highlighted the billions of dollars in potential export growth just because of the country`s proximity to Japan, China and Southeast Asia. The chief also noted the vast potential embedded in the rising household incomes of the emerging Asian economies.



"What`s more, we`re ahead of Japan in adopting export-oriented agriculture policies," he stressed.

On sensitive international trade issues, he said Korea is not ready to consider allowing imports of U.S. beef from cattle over 30 months old, which are believed to carry higher risk of transmitting mad cow disease. Seoul is obliged to resume full imports of American beef once public confidence in the meat has been restored under the FTA deal signed in June 2007.

As for the beef row with Canada, the policymaker said Seoul is prepared to present its argument, should Ottawa request for the establishment of a dispute settlement panel following the petition it filed to the World Trade Organization on April 9. Korea has been banning Canadian beef imports since December 2003 due to reports of mad cow disease.

"It hasn`t been that long since we`ve had to deal with the tough public outcry over U.S. beef imports; Canada should understand our domestic situation," Chang said.

His casual attire may be slightly more liberating when active on duty, but the essence of his job still carries as much tension as the physically restraining suit and tie.

(sohjung@heraldm.com)

By Yoo Soh-jung