Farmers' Cooperative Invests $882 Million to Support Onion Prices Amid Decline

 Recently, as onion prices have plummeted, the National Agricultural Cooperative Federation (NACF) announced on June 4 that it will invest 882 billion won (approximately $682 million) to implement additional purchases and loss compensation measures for farmers.

According to the NACF, the wholesale price of onions at Garak Market last month was 570 won per kilogram, a 30% decrease from 812 won during the same period last year. In response, the NACF is rolling out support measures ahead of the peak shipping season for mid-late season onions to stabilize farmers' operations.

To facilitate additional purchases of onions from local cooperatives, the NACF will allocate 800 billion won in special interest-free funds and focus on supporting packaging and sorting operations.

Additionally, a 32 billion won loss compensation program will be implemented. If the market price of onions shipped through the NACF falls below the standard price, farmers will receive up to 200 won per kilogram in support. Cooperatives participating in joint marketing will also receive compensation of 50 to 150 won per kilogram for incurred losses.

The NACF plans to promote onion consumption through a 24 billion won initiative utilizing its nationwide distribution network. This includes large discount events at Hanaro Mart, providing onion juice at NACF financial branches as cooling stations, distributing onions to customers at NACF gas stations, enhancing sales at direct agricultural markets, and increasing supply to military units.

Kang Ho-dong, Chairman of the NACF, stated, "The ongoing price weakness due to increased onion supply this year has significantly impacted farmers. The NACF will mobilize all its resources to ensure that the onions cultivated by farmers receive fair prices."