Smart sorting systems boost quality trust and accelerate innovation in local agricultural distribution.
Gyeongsangbuk-do Province announced that it is accelerating the smart transformation of Agricultural Product Processing Centers (APCs) by introducing artificial intelligence (AI) technologies, with the goal of strengthening data-driven quality management and leading innovation in local agricultural distribution.
APCs are multifunctional facilities that handle sorting, packaging, storage, and shipment of farm products, serving as a central hub in the distribution chain connecting production areas to wholesale and retail markets.
Since 2023, Gyeongsangbuk-do has invested a total of KRW 38.3 billion to expand and modernize 16 APCs as part of its plan to transition to a stable, digitally based smart agricultural distribution system.
In particular, the province secured KRW 16.2 billion in national funding for APC projects scheduled for 2026, accounting for about 44 percent of the total national budget for the program, giving further momentum to its smart distribution initiatives.
At the heart of this transition is the adoption of AI-powered sorting machines. These systems analyze image and sensor data to automatically assess quality, size, and color, and then sort products by grade, allowing large volumes to be processed quickly under consistent standards.
Automation not only reduces labor costs but also lowers overall distribution expenses, improves product quality, and increases the prices farmers receive for their produce.
AI cameras can detect even minor defects that are difficult to identify with the naked eye, providing consumers with more reliable quality assurance and further strengthening trust in agricultural products.
Data-driven sorting systems that minimize subjective judgment are becoming increasingly important in a market where online transactions are growing and brand credibility has become a key competitive factor in agricultural distribution.
According to research by the Nonghyup Future Strategy Institute, APCs in Gyeongbuk that handle peaches saw an increase in average selling prices after introducing AI sorting machines in 2023.
Currently, Gyeongsangbuk-do operates a total of 133 APCs, including 98 run by agricultural cooperatives and 35 by agricultural corporations, with total transaction volume reaching KRW 1.6927 trillion in 2023, representing a substantial share of the national total.
The average transaction volume per facility stands at KRW 12.4 billion, exceeding the national average of KRW 10.4 billion, indicating that the province has built a more large-scale and efficient local distribution system than many other regions.
The province is also strengthening consumer confidence through its integrated fruit brand, “Daily.” This premium label is granted only to fruits certified by the provincial government and reflects a commitment to providing fresh and safe produce every day.
Only the top 50 percent of fruits that meet strict standards for sweetness, size, and color among four items, apples, peaches, plums, and grapes, are allowed to carry the “Daily” brand.
By combining AI-based quality control systems with branding strategies, Gyeongsangbuk-do aims to further enhance the competitiveness of local agricultural distribution and build a supply chain that consumers and farmers can trust, even as non-face-to-face transactions continue to expand.
Source: Gyeongsangbuk-do Provincial Government
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