What’s the secret of those delicious cookies that Starbucks has fallen in love with? 
(Published March 16, 2012)

[FTA Era: Finding Solutions in Agriculture (1)] MIDM Agricultural Union Corporation
MIDM Agricultural Union Corporation signs MOU with Starbucks for export of Gyeonggi rice cookies

◇ Governor Kim Moon-soo signed a memorandum of understanding with Go Yu-chan , Senior Vice President of Starbucks Korea, and Jeon Dae-gyeong, representative of the MIDM Agricultural Union Corporation, at Factory One of the MIDM Agricultural Union Corporation in Oseong-myeon for expanded sales of Gyeonggi rice products. ⓒ G-News Plus / Yoo Jae-hoon

As the KORUS FTA took effect on March 15, the impact on Korea’s agricultural and livestock industry seems unavoidable. Gyeonggi Province announced Wellbeing Agricultural Administration Projects and began the support farmers and stockbreeding households. We will introduce some cases in which people are overcoming the challenges presented by the free trade agreement through product development, cost reduction and exports along with the measures taken by the Gyeonggi Provincial Government in eight areas.

“We produce approximately 50 kinds of products every year. We launch only the two thirds that meet consumer preferences.”

The combination of Starbucks, a global enterprise that has outlets in 55 countries, and cookies made from Gyeonggi rice.

The MIDM Agricultural Union Corporation located in Oseong-myeon of Pyeongtaeak City, Gyeonggi Province, is a rice product processor and has become a supplier to Starbucks, which is well known for the demands it places on its suppliers.

The secret to the popularity of MIDM’s products is their elegant design, high nutritional value and clean taste. Starbucks signed an agreement with MIDM in 2007 and has sold rice cakes supplied by MIDM. On  March 13, it signed a MOU to sell MIDM’s cookies at not only at its more than 400 domestic sales outlets but also through 17,000 global outlets in 55 countries. 

Considerable changes are anticipated among domestic farming households with the opening of the domestic market to U.S. agricultural products as a result of the KORUS FTA that went into effect on March 15. The MIDM Agricultural Union Corporation is recognized as a successful operation that has enhanced its agricultural competitiveness through rice products.

The MIDM Agricultural Union Corporation has established a system whereby its 15 member companies handle the whole business chain including product development, design, production, processing and sales.

The member companies have their own design teams and propose exceptional ideas to a professional design company. In this way, MIDM quickly responds to the demands of Starbucks and Tous Les Jours, whose products have relatively short life cycles.

Above all else, the ability to develop new products is the strength of MIDM, which produces approximately 50 fifty products each year with the cooperation of experts and has launched 32 items so far.

The launched products include Starbucks cookies, Tous Les Jours banana rice bars, Yoonsan Food oven-cooked apples, Olive Young original rice bars, rice noodles and other rice products developed by Dr. Jeon under the brand name of ‘Nonjigi’ and the technological support of Gyeonggi-do Agricultural Research & Extension Services.

Jeon Dae-gyeong, representative of the MIDM Agricultural Union Corporation, said, “The key to the success of rice products is the ability to develop new products continuously.” He continued, “After a product is launched, new products should be in supporting positions, which is not that easy. The biggest difficulty facing farmers is this issue of product development.”

“The success with Starbucks is the result of our efforts to present our products and secure favorable outcomes at agricultural fairs. Through our participation in fairs, we have been able to strengthen our commitment to the quality of our products.” He advises farm households to make the best use of agricultural fairs.

Gyeonggi Province held rice product shows with a total budget of KRW 670 million from 2008 to 2011 to identify rice products that meet consumer requirements through the continuous development of new products and enhanced competitiveness.

Gyeonggi Province selected 40 products in four fairs, 10 products a year, during the four-year period. The province supports the development of packaging materials and containers along with the improvement of hygiene and automation facilities.

MIDM was officially recognized for its rice cookies in 2008, 2010 and 2011.

The success of MIDM is attributable to the perseverance and business management mind of representative Jeon, a native of Pyeongtaek City. He has a doctorate in agriculture and grows rice himself as a third-generation farmer.

Dr. Jeon produces 600 tons of rice a year, which he grows using environment-friendly methods such as freshwater snail utilization and pesticide-free cultivation.

The annual turnover of the MIDM Agricultural Union Corporation jumped from KRW 600 million in 2009 to KRW 4.5 billion in 2011. It expects to reach the KRW 6 billion mark in 2012.

In particular, the corporation has considerably increased the proportion of contractual cultivation, contributing to the stable income levels of farm households.

Established in 2005, the corporation increased the number of households engaged in contractual rice cultivation from 18 in 2009 to 140 in 2011, and the cultivated area from 85ha to 361ha during the same period.

Dr. Jeon said, “Instead of selling rice as only their harvest, farmers must try to sell their products in more varied ways to increase their income.” He added, “This year, we will also implement a cropping system. If the system is stabilized, we will continue to expand the area of contractual cultivation.”

“In fact, only with rice production, it is hard to maintain one’s competitiveness. Although rice should be their staple product, other products like potatoes, beans and other agricultural crops should be planted rotationally.”

“It was not easy to organize farmers in the beginning, but now I think I am sufficiently rewarded for all my efforts.” He continued, “I expect that more rice products will be exported as long as they are price competitive.”

◇ Dr. Jeon said, “The rice cookies made from Gyeonggi rice appeal to foreigners because of their clean taste.” On March 13, Governor Kim is briefed by Dr. Jeon on the rice cookie production processes. ⓒ G-News Plus / Yoo Jae-hoon

ⓒ G-News Plus / Lim Jeong-seon / jslim123@kg21.net

http://gnews.gg.go.kr/news/news_detail.asp?number=201203161116467055C052&s_code=C052