Abstract
This paper aims to review how pre-processing facility of agricultural products can be established and operated. First of all, industry and its enterprises of pre-processing agricultural products are analyzed from the national perspective. Especially, five well-known pre-processing business units operated by producers' organizations are introduced including Ansung Machoom Agricultural Cooperative. Changwon City in Gyeongnam Province was chosen for a case study. Demand for local agricultural products by school feeding and other institutional food service in Changwon area is estimated and it is compared with the supply of agricultural products produced in the region. Questionnaire survey was done for school nutritionists and the main results are summarized. In the final stage, basic ideas for pre-processing facility of agricultural products in Changwon area are proposed considering the previous analyses. These ideas include size of the facility, participants and scope of the business, and location. Virtual profitability analysis is also conducted for the facility. Some suggestions for the proposed facility to be more successful in the future are suggested at the conclusion.
