The 9th Asia-Pacific
Cooperative Ministers Conference
Consumer Co-op Build Organic Food Clusters
iCOOP KOREA
Chairperson, iCOOP Consumer Activities
Oh, Mi-yea
FEBRAURY 28, 2012
The Status of iCOOP KOREA
iCOOP KOREA
iCOOP KOREA’ s Chronicle
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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
Core business value: Ethical Consumerism
1. Encourages sustainable production.
2. Respects people and labor through protecting eco-friendly and
local farming.
The meaning of “i”
- individual
- ideal
- innocence
- innovation
iCOOP KOREA
Growth in Annual Turnover (100mln KRW) and Membership
3500
3000
2500
3002
In 2000: 15 primary co-ops
2,470 individual members
In 2011: 75 primary co-ops
155,705 individual members
2632.77
2062
2000
1500
1301.5
942.4
1000
494.4
500
0
15.2 29.4 53.3
83
165
601
760
287
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
•There are over 630,000 membership, 391 primary co-ops,
6 consumer co-op unions in Korea as of December 31,2011.
iCOOP KOREA
iCOOP KOREA’s Group Structure
Consumer
Production
Part
-owned part
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iCOOP Union
iCOOP Consumer
Activities
Mutual Aid Society for
Enhancing Korean
Agriculture
ATF (Korean Certification
of Distribution for Ecofriendly food Association)
iCOOP Cooperative
Institute
iCOOP Seed Foundation
…
10 organizations
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iCOOP Association of
Producer Group
iCOOP Organic Food
Supply Co,. Ltd
iCOOP Livestock
Products Co,. Ltd
Co-op Bakery. Ltd
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9 organizations
iCOOP
KOREA
iCOOP KOREA
Main Businesses of iCOOP KOREA
Home Delivery Service
7 logistic centers and
10 delivery centers
Online Order System
Natural Dream Stores
Total 111 (Jan.31.2012)
Organic Food Cluster and
iCOOP Valley
A Mark
Production to distribution
verification system
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 ecofriendly 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
Eco-friendly Organic Food Cluster and iCOOP Valley Project
Village
School
For new future of cooperation and coexistence
Stock Farms
Hospital
Processing
Companies
Orchard
Logistic Center
Eco-friendly Organic Food Clusters and iCOOP Valley Project
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 govern
ment vetting committee, and notification of approval
May 2011
Held the groundbreaking ceremony
2012-2013
Started the groundwork
Eco-friendly Organic Food Clusters and iCOOP Valley Project
MOU Signing Ceremony
The groundbreaking ceremony
Eco-friendly Organic Food Clusters and iCOOP Valley Project
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 factory
June 2012: Completion of CS Logistic center
Dec. 2012: Completion of all facilities
Eco-friendly Organic Food Clusters and iCOOP Valley Project
Reasons for the Cluster Project by iCOOP KOREA
To overcome the low profitability of agricultural production and
direct
transaction
To overcome
thebusiness
low profitability of agricultural production
and
direct
transaction
business
A need
for innovative
cost-reduction
A
needfor
fordeveloping
innovative
cost-reduction
A need
food
brand with high reliability
A need for developing food brand with high reliability
To get added-income through creating added-value from their
products
for a
farmers
and present
a new agriculture
model for reviving
To present
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.
Resident Briefing on Cluster Industrial Complex Plan
Eco-friendly Organic Food Clusters and iCOOP Valley Project
Why are these clusters 'innovation' for us?
The project fund is raised by the three stakeholders :
consumer members, producers, employees
The co-operative 3rd Principle
‘Member Economic Participation'
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.
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No. of Investors
No. of Accounts
3,087
4,439
Total Amount
KRW 20,876,825,621
(USD 18 million)
Cluster Fund Status
as of September 19, 2011
(source: iCOOP Mutual Aid Society for Korean Agriculture)
Eco-friendly Organic Food Clusters and iCOOP Valley Project
Why are these clusters 'innovation' for us?
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.
A MARK
NATURAL
DREAM
STORES
NATIONAL
LOGISTIC
SYSTEM
CLUSTER
• transparent manufacturing process by checked
consumers participating in cluster-experiential tour
Eco-friendly Organic Food Cluster and iCOOP Valley Project
Why are these clusters 'innovation' for us?
Contribution to local communities
stable production base from increased
consumption of eco-friendly agricultural produce
population influx :
3,000 new stable jobs, revival of local economy
diversified population composition
of the elderly centered local communities.
Eco-friendly Organic Food Clusters and iCOOP Valley Project
Why are these clusters 'innovation' for us?
To present an alternative life-style
excessive
urbanization
in 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
Eco-friendly Organic Food Clusters and iCOOP Valley Project
Why are these clusters 'innovation' for us?
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
Eco-friendly Organic Food Clusters and iCOOP Valley Project
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
Eco-friendly Organic Food Clusters and iCOOP Valley Project
iCOOP Festival 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
The event of Walk for Cluster Site Land in Goesan-gun
Eco-friendly Organic Food Clusters and iCOOP Valley Project
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
Processers and staffs
The site of the cluster and valley in Goesan-gun
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
icoopkorea@gmail.com
contact person: Ms. Lee Ju-hee