Entrepreneur bridges farmers and consumers
By Kim Bo-eun
Park Jong-beom
In 2003, Park Jong-beom started working for a company that provided consulting services for farming villages. As he learned about farming and farmers in rural villages, it occurred to him that the dominant retail structure of how produce ends up with consumers was not designed to be favorable to farmers or consumers.
“I realized farmers need to provide products to retailers' requirements and have little control over prices,” Park, 36, said.
“I thought bridging farmers and consumers would be a way to solve this problem.”
On the sidelines of work, Park engaged in various projects with farmers.
In 2013, he began a project incorporating the concept of crowdfunding to farming. Individual consumers would invest small amounts for the produce from a rice farmer, and they would receive rice in return for their investments. The project eventually developed into Farming Fund.
“This way, farmers can start farming without debts and can be freed from concerns of retail and sales,” Park said. “In the case of consumers, they are able to get fresher yet cheaper produce, because unnecessary retail processes are eliminated.”
Park said the model, which enables consumers to see the process of the farmer growing produce, establishes a relationship between the farmer and consumer. The relationship breeds trust, which results in farmers producing better products, he said.
Meanwhile, investors take on the risk of the farmer harvesting less than expected because of bad weather or blight.
“Risks are reduced as the number of investors increases,” Park said. He said Farming Fund is planning to create insurance for agricultural disasters.
Farming Fund also saves 1 percent of its profits so investors can buy other products if their investments do not yield the expected outcome.
On Farming Fund’s website, consumers are able to browse various products that range from lemons grown on Jeju Island and persimmons from a four-generation farm to eggs from chickens fed on brown rice.
Although the produce is different from the flawless fruit and vegetables found at retail giants, Park has pride in that they are organic.
Farming Fund has linked 9,000 consumers to 350 farmers.
With the Lunar New Year holiday two weeks away, Farming Fund is busy dealing with orders for agricultural gift sets.
“I am truly happy connections are being established between farmers and consumers,” Park said. “I believe this is a beginning to a new paradigm in which farmers and consumers can say to each other ‘thanks to you (I can farm without concern or I can get good produce).’ I will endeavor for this to happen soon.”