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Published by: Business Monitor International
Published: Jun. 19, 2009 - 53 Pages
Table of Contents
- Executive Summary
- SWOT Analysis
- South Korea Agricultural SWOT
- Industry Business Environment Overview
- Market Overview
- Supply Demand Analysis
- South Korea Rice Outlook
- Table: South Korea Rice Production, Consumption & Trade
- Table: South Korea Rice Production, Consumption & Trade
- Industry Forecast - South Korea Grain Outlook
- Table: South Korea Wheat Production, Consumption & Trade
- Table: South Korea Corn Production, Consumption & Trade
- Table: South Korea Wheat Production, Consumption & Trade
- Table: South Korea Corn Production, Consumption & Trade
- Industry Forecast - South Korea Dairy Outlook
- Table: South Korea Milk Production & Consumption
- Table: South Korea Butter Production & Consumption
- Table: South Korea Cheese Production, Consumption & Trade
- Table: South Korea Whole Milk Powder Production, Consumption & Trade
- Table: South Korea Milk Production & Consumption
- Table: South Korea Butter Production & Consumption
- Table: South Korea Cheese Production, Consumption & Trade
- Table: South Korea Whole Milk Powder Production, Consumption & Trade
- Industry Forecast - South Korea Livestock Outlook
- Industry Forecast - South Korea Livestock Outlook
- Table: South Korea Poultry Production, Consumption & Trade
- Table: South Korea Pork Production, Consumption & Trade
- Table: South Korea Beef & Veal Production, Consumption & Trade
- Table: South Korea Poultry Production, Consumption & Trade
- Table: South Korea Pork Production, Consumption & Trade
- Table: South Korea Beef & Veal Production, Consumption & Trade
- Competitive Landscape
- Table: Agricultural Commodity Producers & Traders
- Table: Agribusiness Suppliers
- Table: Integrated Agricultural Producers
- Market Strategy - Grains Update
- Corn
- Table: Corn
- Soybean
- Table: Soybean
- Rice
- Table: Rice
- Wheat
- Table: Wheat
- Market Strategy Softs Update
- Cocoa
- Table: Cocoa
- Coffee
- Table Coffee
- Milk
- Table: Milk
- Sugar
- Table: Sugar
- Downstream Supply Chain Analysis
- Industry Forecast Scenario - Food
- Food Consumption
- Table: Food Consumption Indicators -- Historical Data & Forecasts
- Canned Food
- Table: Selected Food Subsectors Value/Volume Sales (US$mn, unless otherwise stated) -- Historical Data & Forecasts
- Confectionery
- Trade
- Table: South Korea Food & Drink Trade Indicators (US$mn) -- Historical Data & Forecasts
- Industry Forecast Scenario - Retail
- Table: South Korea MGR Value Sales by Format (US$bn) -- Historical Data & Forecasts
- Table: Grocery Retail Sales by Format (%) -- Historical Data & Forecasts
- Economic Activity
- Table: South Korea - Economic Activity
- BMI Forecast Modelling
- How We Generate Our Industry Forecasts
AbstractKorea's major crop, rice, will have an unexpectedly good 2008/2009 harvest, with forecast productionrising 9.8% year-on-year (y-o-y) to 4.84mn tonnes, despite a reduction in the area planted. The growthwill be the first increase in rice production in Korea since 2005. Despite the increase this year, however,we expect the long-term falling trend in rice production to continue over our forecast period. Increasingpressure on land will see the area planted continuing to fall despite yield improvements.
The major story in South Korean agriculture this past quarter has been attempts to secure agricultural landoverseas. Korea is in the vanguard of wealthy food-deficit countries attempting to shore up food securityby purchasing land in poorer countries for agricultural investments. The Gulf states are following asimilar strategy. The biggest, and one of the most controversial, such attempts was the deal betweenDaewoo Logistics and the government of Madagascar to lease 1.3mn hectares of land in the country forcorn production.
Unsurprisingly, deals of this nature have been arousing nationalist sentiment in the countries targeted.The land lease in Madagascar has now been called off following the ousting of president MarcRavalomanana. New President Andry Rajoelina vocally protested against the deal in his successfulunseating of Ravalomanana.
Africa is not the only target for Korean companies, however. In April, Hyundai Heavy Industries, betterknown for shipbuilding, struck a deal to purchase a majority stake in Russia's Khorol Zerno LLC, whichowns a 10,000 hectare farm in the far east of Russia. Similar projects are also on the horizon in Indonesia.Korea's massive import requirements for grain and shortage of agricultural land mean that buying landabroad may seem like a good solution to guarantee food security. However, with land rights such anemotive issue, large foreign holdings in poor and oft unstable countries will always be an easy target forpoliticians hoping to score points among the rural poor. This will make any large investment inherentlyrisky especially at times of high food prices when sensitivity surrounding the issue is heightened.
With Korean agriculture already propped up heavily with subsidies, there is little chance of dramaticincreases in production at home. So despite the risks and the Madagascan setback, the scramble for landwill continue. In April, the agriculture ministry gave its official blessing to companies seeking to invest infarmland abroad and raised the prospect of incentives such as cheap loans.
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