Coupang has surpassed 7,000 tons of fruit purchases from local farms in areas experiencing population decline. This increase aligns with the expansion of its early morning delivery service and brings the total close to last year's annual purchase volume within just eight months.
On September 21, Coupang reported that from January to August this year, it purchased 7,000 tons of fruit from eight regions, including Yeongam and Hampyeong in South Jeolla Province, Seongju, Uiseong, Yeongcheon, and Goryeong in North Gyeongsang Province, and Gunwi in Daegu, marking a 10% increase compared to the same period last year. This is the largest volume recorded to date.
Last year, Coupang purchased 7,550 tons of fruit from these areas. The volume purchased from January to August this year alone has already exceeded 90% of last year's total.
Regionally, purchases of figs from Hampyeong, a major production area, increased by 138% compared to last year, while plums from Gunwi rose by 73%, and watermelons from Goryeong increased by 60%. Coupang sources over 30 types of fruits, including apples, melons, plums, watermelons, strawberries, and figs, from these regions for nationwide early morning delivery.
Coupang anticipates that its fruit purchases will exceed 8,400 tons by the end of the year. The volume of local fruit purchases has steadily increased from 3,400 tons in 2022 to 5,600 tons in 2023, 6,000 tons in 2024, and 7,550 tons last year. The company explained that by expanding its early morning delivery logistics network into Honam, Gyeongsang, and Gangwon regions, it has also broadened the areas and consumer base for local agricultural products.
The expansion of direct purchases has led to increased revenue for farmers. The Gunwi Agricultural Cooperative's plum marketing association, which includes about 130 local farmers, reported sales of 1.6 billion won from Coupang so far this year, doubling compared to the same period last year.
Hong Seong-il, head of the Gunwi Agricultural Cooperative's plum marketing association, stated, “We established a state-of-the-art sorting system in collaboration with local governments to produce high-sugar, high-quality plums, but we faced challenges due to a lack of sales channels. Since starting to work with Coupang, we have been able to sell plums directly to consumers nationwide and have received thousands of real-time reviews, boosting our pride as farmers.”
Eun Deok-woo, head of the Gunwi Agricultural Cooperative, noted, “Unlike traditional auction markets where prices can plummet based on daily consumption, Coupang maintains stable purchase volumes, which is expected to enhance the economic revitalization associated with the rise in local brand value.”
As rural areas continue to face aging populations and declining numbers, securing stable sales channels has become increasingly important. According to the Korea Rural Economic Institute, the number of farmers in South Korea fell to 1.982 million last year, a 1.1% decrease from the previous year, marking the first time it dropped below 2 million. Among them, 56% were aged 65 and older.
Coupang plans to diversify sales channels for farmers through direct purchases, promoting local specialty brands to consumers nationwide. A company representative stated, “We will continue to expand our purchases from local farmers and foster cooperative growth to help those in population-declining areas who are struggling to find sales channels.”
* This article has been translated by AI.
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