Sangju City Expands Sales Channels for Specialty Agricultural Products Through Major Distribution Networks

Sangju City, SPC GFS, and Nonghyup Distribution Sign MOU
Diversifying Distribution Channels: Foodservice, Catering, and Hanaro Mart

Sangju City in North Gyeongsang Province is joining hands with major foodservice and distribution companies to expand sales channels for the region's specialty agricultural products and establish a stable income base for local farmers.

SPC GFS Co., Ltd. signed a business agreement with Nonghyup Distribution, which has strengths in the distribution of fresh produce from production areas, to promote the distribution of Sangju agricultural specialties and establish a win-win network.
[Photo by Sangju City]

On September 8, Sangju City held a signing ceremony in the main conference room at city hall for a business agreement with SPC GFS Co., Ltd., a company specializing in foodservice distribution and group catering, as well as Nonghyup Distribution, which excels in distributing fresh agricultural products from production areas. The memorandum of understanding aims to activate the distribution of Sangju's specialty agricultural products and build a mutually beneficial network.

The agreement includes: ▲expanding sales channels and invigorating the distribution of Sangju’s specialty agricultural products; ▲developing and promoting joint products made from local agricultural goods and implementing marketing initiatives; ▲and formulating win-win solutions for a stable supply. The three parties plan to pursue concrete collaborative projects step by step, based on different product categories and distribution channels.

In particular, SPC GFS, a major distributor supplying food ingredients to its affiliates such as Samlip, Paris Croissant, and Baskin Robbins, has already collaborated with Sangju by purchasing and supplying 1,000 tons of 'Sangju Rice Misojinpum' from Gongsung Nonghyup each year.

Going forward, SPC GFS plans to expand its purchases to include more of Sangju’s premium products such as dried persimmons, pears, and Korean beef. The company also seeks to develop new products using local agricultural goods and increase sales through its foodservice and restaurant distribution networks.

Nonghyup Distribution is also leveraging nationwide consumer touchpoints such as Hanaro Mart to expand sales opportunities for Sangju’s produce—including grapes, pears, cucumbers, and peaches—from 2027. Special planned sales events and promotional activities that connect production periods with consumer demand are also in the pipeline.

With this agreement, Sangju City is aiming to move beyond a sales structure focused on wholesale markets and retail, instead diversifying sales channels to include restaurants, group catering, and food ingredients companies.

The city also plans to link information on production periods, supply quantities, product standards, and quality from production areas to corporate demand, thereby establishing a stable transaction framework and helping ensure farmers receive fair value for their produce.

Jae-Min An, Mayor of Sangju, stated, "This agreement marks the starting point for creating new markets for Sangju’s agricultural products by connecting each institution's area of expertise," adding, "We will create a distribution environment that leads to increased income for farmers through diversified channels and enhanced production area competitiveness."

Attention is now focused on whether this agreement—combining production capacity at the source with large-scale distribution networks—will lead to stable sales channels for Sangju's produce and raise farmers' incomes.

This content was produced with the assistance of AI translation services.