Abstract

Currently, 32 agricultural public wholesale markets in Korea are being built and operated in major cities. In particular, the wholesale market corporation is a collector of the wholesale market, and plays a role of selling the producers while realizing the fairness and transparency of agricultural prices through consignment transactions. In this process, wholesale market corporations collect consignment fee from producers for a portion of the transaction amount. However, there have been questions about competition restrictions and fair trade violations of consignment fee collected by wholesale market corporations. Therefore, the purpose of this study was to investigate the characteristics and meaning of consignment fee of wholesale market corporations in the Garak-dong agricultural and marine products wholesale market. The results show that there is no correlation between consignment fee and transaction size of wholesale market corporations. And the profit structure and shipping factors of the shipper were attributed to the collection ability, high price formation ability, and dispersion ability of the wholesale market corporations, rather than the difference in consignment fee. Under the structure of the wholesale market in Korea, the biggest concern for shippers is ensuring high receiving prices. Therefore, the most important role of the wholesale market corporations is to increase the bid price as much as possible through transparent pricing and to settle the selling price safely and quickly. In addition, shipment guidance and training through auctioneers, and support to wholesalers for efficient distribution activities will be important competitive and marketing factors.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call