“There’s still a way even if government purchases shrink”… Moga Agricultural Corporation seeks a breakthrough through private distribution and sixth-industry development

As the government has encouraged the cultivation of alternative crops in rice paddies to ease the oversupply of rice, production of paddy soybeans has surged. However, with the government’s recent downward revision of its purchase plan, diversifying sales channels for farmers has emerged as an urgent task. Amid these market changes, an agricultural cooperative corporation is drawing attention for strengthening its own competitiveness by pioneering private distribution networks and pursuing sixth-industry development that encompasses processing and distribution. 

Moga Agricultural Cooperative Corporation in Icheon, Gyeonggi Province (CEO Lee Sang-jin) is a representative example. With about 80 farms joining forces to cultivate 460,000 pyeong of soybeans (about 152 hectares as of 2026) and 200,000 pyeong of rice paddies (about 66 hectares), the corporation is attracting attention for reducing its dependence on government purchases, actively entering the private distribution market, and seeking a new path to increase farm income through sixth-industry development spanning production, processing, and distribution.

Directly targeting the private market creates an additional 700 won in profit per kilogram
Moga Agricultural Cooperative Corporation proved its ability to produce high-quality soybeans by recording a 98% rate of top-grade classification. In fact, of the more than 400 tons of soybeans produced last year (including private deliveries and seed use), 330 tons were purchased by the government (180 tons in the first round and 150 tons in the second), and 147 tons from the second-round purchase were classified as top grade. The price difference between top grade (4,800 won for large-seeded varieties) and first grade (4,560 won) is 240 won per kilogram, meaning farmers can earn an additional 240,000 won per ton if they receive a top-grade rating.

However, as the government recently lowered its purchase plan for domestic soybeans, which it had previously bought in full, due to the increase in soybean production, calls have grown louder for diversifying soybean sales channels. In response, Moga Agricultural Cooperative Corporation moved quickly to adapt to these market changes and made direct targeting of the private market its core strategy.

It plans to increase private-channel deliveries from about 50 tons last year to 100 tons this year. In particular, since its excellent taste and quality have been recognized in transactions with private processors of tofu and soy milk as well as direct sales to consumers, the corporation is focusing this year as well on producing and supplying high-quality soybeans to expand delivery volumes. It is also considering developing a variety of processed foods using soybeans as a raw material, such as bread, soybean patties, and soft tofu, in order to expand future distribution channels.

CEO Lee Sang-jin explained, “Rather than relying only on government purchases, we managed the business with a focus on securing diverse distribution channels, such as supplying soybeans to local food outlets in Gwangju and Icheon in Gyeonggi Province. Thanks to those efforts, last year the distribution price through private sales channels was about 5,500 won per kilogram, allowing us to generate about 700 won in additional profit compared with government purchases.” He added, “This year as well, we are not only securing various private distribution channels but also planning soybean-based product development and corporate partnerships in order to transition to the sixth industry.”

Pushing to build processing infrastructure… “Support for initial facility investment is urgently needed”
Moga Agricultural Cooperative Corporation is pushing to build a 200-pyeong low-temperature storage facility and processing plant in order to establish a stable year-round supply system for high-quality soybeans. Its strategy is to broaden the consumer base by strengthening a lineup of high-value-added processed foods such as bread, soybean patties, and soft tofu, in addition to selling raw agricultural products.

However, CEO Lee Sang-jin is voicing concerns over the enormous cost burden involved in building such infrastructure. This is why there are calls to expand support for hub processing and storage facilities for leading agricultural corporations that actively participate in government policy and show voluntary commitment to quality improvement and the development of private sales channels.

CEO Lee Sang-jin requested, “To expand private distribution networks, low-temperature storage and processing facilities are essential, but there are limits to an individual agricultural cooperative’s ability to bear investments worth billions of won on its own. When the government and local authorities provide policy support, I hope they will also take into account region, area, and scale. I hope that through government support, farms with determination and a strong work ethic will also have opportunities to contribute to national projects and the food industry.” 

Crop-livestock circulation farming takes root… producing high-quality agricultural products by staying true to the basics
Another strength of Moga Agricultural Cooperative Corporation is that 30% to 40% of its members are young farmers under the age of 50. The sensibilities of young farmers combined with the experience of middle-aged and older farmers have helped establish a “crop-livestock circulation farming” method that minimizes the use of chemical fertilizers.

In addition, to directly overcome rural aging and difficulties in securing labor, the corporation is actively promoting automation and mechanization throughout the entire farming process, from sowing to harvest. By maintaining proper planting distances, carrying out timely sowing according to each growth cycle, and following standard manuals for pest and disease control, it is keeping quality uniformity as well as ventilation and photosynthesis efficiency at the highest level.

CEO Lee Sang-jin said, “When farming, we inevitably face various difficulties, but we are trying to overcome them through cooperation with our members,” and promised, “We will work even harder to produce high-quality and safe agricultural products such as soybeans and rice that consumers can trust.”