Differentiated High Quality Paprika Exported to World Market

Differentiated High Quality Paprika Exported to World Market

ODAE Trading Co., Ltd. is a corporation established by 17 paprika farmers who produce and ship to overseas. The farmers cultivate the premium paprika and expand to overseas directly by themselves to improve farm income while reducing various costs. It is recently attracting attention as it started exporting to Taiwan based on its professional export competitiveness.

Export to Taiwan and China after the entry to Japan

ODAE Trading Co., Ltd. is an export corporation established in 2006 by 17 farmers who were growing paprika in Pyeongchang. The annual production is about 3000 tons, most of which are exported to Japan. Lately, it is pushing forward to trade

with Taiwan in order to diversify export countries. When ODAE Trading started direct exporting to Japan in 2009, the export volume was merely 2.5 tons, which has increased to 3000 tons per year in 2018. The company has been able to develop export volume more systematically and effectively by securing export expertise since 2009 after engaging themselves into direct exporting. In 2017, it has exported 100 tons of paprika to Taiwan for the first time, expanding its export market to Taiwan after Japan. Through meticulous logistics management, exports are gaining the drive force while reinforcing trust with buyers, and maintaining the high level of reliability that Japan and Taiwan want at the production stage.

Build up export competitiveness by improving system

ODAE Trading Co., Ltd. is a corporation where production farmers take the lead and have expanded the market by fortifying export marketing. The company was able to strengthen the paprika export business and price competitiveness, especially in Pyeongchang. By reducing intermediate margins through direct trading with foreign buyers, it has the advantage in terms of price competitiveness and competitors in the export market. It is also possible to secure consistency in export volume demanded by buyers as farmers engage themselves in producing the crops. In addition to diversifying ship routes to Japan, the company has also shortened delivery time, which was helpful to increase the freshness of paprika and reduce logistics costs.

As an example, the export port has been changed from Busan to Donghae, resulting in a 50% reduction in logistics costs and a significant improvement in buyers’ reliability. Based on the results of such direct exports, the goal is to increase the volume of over 4000 tons by 2020.

Enter the Chinese market by upgrading the quality to premium grade

ODAE Trading Co., Ltd. has been developing its overseas market after successfully exporting to Taiwan in 2017 following the existing exporter, Japan. The company is pushing itself to fully prepare for export to China when the Chinese market opens this year. To this end, it has recently conducted an export market survey of Beijing, Qingdao and Shanghai to carefully target the Chinese market.

ODAE Trading Co., Ltd. is located in Pyeongchang at an elevation of 500-700m above sea level, which is a perfect place to cultivate paprika. The ODAE paprika is especially popular among international consumers because of its thick skin and high moisture content. In order to expand exports, the company is trying to improve the image of ODAE Paprika by strictly complying with the selection criteria, and trading only the high-quality products. This year, it plans to focus on diversifying global markets. In order to enhance export competitiveness, joint overseas marketing for key exporting countries such as Japan, Taiwan, Hong Kong and China are under preparation. In particular, the company is getting ready to carry out various marketing strategies targeting China, the largest export market, and produce customized product according to Chinese preferences. In addition, the company aims to secure the top quality products through thorough shipment inspection to satisfy buyers and consumers’ purchase needs. The company plans to ship out fresher products by opening up new export routes, reducing logistics costs and time to heighten the effect of direct exporting.

Cha Young-tae, the Export Manager of ODAE, said, “We are receiving more detailed education on residual pesticides from Rural Development Administration(RDA) along with cultivation of the finest and selected paprika to enter the Chinese market. Above all, we will establish a strategy based on quality competition not price competition with Chinese paprika, and secure sales in local department stores and high-end stores in China.”

Inquiries

ODAE Trading Co., Ltd.

Tel +82-33-332-5406

Mobile +82-10-2642-3988

E-mail odae06@hanmail.net