Market Profile - Korea
- Coarse grains demand of 13 MMT/year – 98.5% imported: 79% for feed, 15% corn milling, 6% beverage alcohol and others.
- #4 import market of U.S. corn in MY 2015/2016.
- #4 import market of U.S. DDGS in MY 2015/2016.
- Very limited barley and sorghum imports despite KORUS FTA.
- Livestock industry and compound feed market growing marginally.
- Population: 51.2 million
- Population growth: 0.4%
- Urban %: 82.5%
- Urabn Growth %: 0.66%
- GDP: 1.4 trillion
- GDP growth: 2.7%
- GDP per capita: $27,633
- Asia’s 4th and world’s 11th largest economy.
- World’s 8th largest trading nation with a s trong balance.
- Must contend with slowing GDP growth and aging population.
- President impeachment has an overall negative impact on the economy.
Trade and Market Share Issues
- Sophisticated price buyer; U.S. share is very volatile depending on price situation.
- With the increase in meat imports, growth of livestock likely to slow down in future; disease control has been a chronic issue.
- Significant increase of DDGS imports; the goal for 2020 is 1.2 MMT.
- Corn quality (higher BCFM) at the ports of discharge has been a perennial problem.
- 520 TMT of old crop rice will be supplied for animal feed in 2017.
- Barley consumption for rice substitute decreased due to the trend of super grains.
- Biotech approval system is slow and unpredictable; 30% of committee members replaced.
- Enhanced new labeling act enacted in February; anti-GMO activities has been becoming stronger and widespread by NGOs, media and the National Assembly.
- RDA and MFDS want to update regulatory direction of NBT and U.S. GMO labeling law.
- Currently no fuel ethanol RFS, a possibility to adopt fuel ethanol RFS after 2020.
- Expanding interest in Trump government’s FTAs and grain trade policies
Feed Grains In All Forms
Marketing Year Sep 2017/Oct 2018:View U.S. Export Data by Country
Equivalent U.S Exports 14,782,016 (MT) -21%
Value $692,102,455 -19%
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