Foreign Agricultural Service Seoul, Korea South Korea: Agricultural Situation October 22, 2009.
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Foreign Agricultural Service Seoul, Korea South Korea: South Korea: Agricultural Situation Agricultural Situation October 22, 2009
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Transcript of Foreign Agricultural Service Seoul, Korea South Korea: Agricultural Situation October 22, 2009.
Foreign Agricultural ServiceSeoul, Korea
South Korea: South Korea: Agricultural SituationAgricultural Situation
October 22, 2009
Foreign Agricultural ServiceSeoul, Korea
GeographyGeography
Size roughly equal to the state of Indiana
Only land border to the North; Surrounded by water on three sides
Mountainous with no extensive plains; only 16.6% arable
Foreign Agricultural ServiceSeoul, Korea
Agricultural ProductionAgricultural Production
Small farm size (3.7 ac) 1.2 mil farm
households including 785,000 fulltime
Agriculture accounts for only 3.8% of GDP
Agricultural products: rice, root crops, barley, vegetables, fruit, cattle, pigs, chickens, milk, eggs and fish.
Foreign Agricultural ServiceSeoul, Korea
EconomyEconomy 2009 GDP
could contract 2-3%
Exports: weak demand in major markets
Domestic Demand: weighed down by rising prices, fewer jobs, stock market volatility.
Exports
Main Pillar of
Korean Economy
U.S. Recession & Weaker Global Conditions
Foreign Agricultural ServiceSeoul, Korea
Economic PerformanceEconomic Performance
0200400600800
100012001400
1970 1997 2009
-10
-5
0
5
10
15
GDP (US$ bil., curent prices, PPP)Real Growth Rate (%)Forecast
Foreign Agricultural ServiceSeoul, Korea
DemographicsDemographics
Homogeneous 50 million people Population growth
rate declining One of the world’s
most densely populated countries
Rapid urbanization ¼ Christian, ¼
Buddist, ½ non-affiliated
Foreign Agricultural ServiceSeoul, Korea
ConsumptionConsumption
Increased affluence More women in the
workforce Well-traveled
younger generation Increased demand
for international flavors
More western style family restaurants
Foreign Agricultural ServiceSeoul, Korea
Retail Market StructureRetail Market Structure
Food Sales Traditional – 30.9% Hypermarkets –
26.5% On-line – 18.2% Dept. Stores –
17.5% On-line sales
growing rapidly, 23.8% growth.
Foreign Agricultural ServiceSeoul, Korea
TradeTrade
Top four trading partners: China, United States, Japan and Hong Kong
Major exports: semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships and petrochemicals.
Foreign Agricultural ServiceSeoul, Korea
Total Trade Vs. Agricultural TradeTotal Trade Vs. Agricultural TradeAgricultural Imports Represent 6% of Total Imports Agricultural Imports Represent 6% of Total Imports Agricultural Exports Represent 1% of Total ExportsAgricultural Exports Represent 1% of Total Exports
0
50
100
150
200
250
300
350
400
450
500
2001 2002 2003 2004 2005 2006 2007 2008
Bill
ion
s U
.S.
Do
llars
Total Imports
Total Exports
Total Agriculture, Fishery and Forestry Imports
Foreign Agricultural ServiceSeoul, Korea
Agriculture: ExportsAgriculture: Exports
Main agricultural exports: leather, seafood, cigarettes, snack foods, noodles, beverages and kimchi.
In 2008, total value of ag exports $3.6 bil.
Represents 1% of total Korean exports.
Foreign Agricultural ServiceSeoul, Korea
Agriculture: ImportsAgriculture: Imports
In 2008, South Korea imported $24.4 billion worth of agricultural products
28% from the U.S. Main ag. imports:
corn, wheat, hides, soybeans, hay, pork, beef and citrus
Foreign Agricultural ServiceSeoul, Korea
Total Agricultural ImportsTotal Agricultural ImportsBulk & intermediate values up sharply in 2008 Bulk & intermediate values up sharply in 2008
0
1
2
3
4
5
6
7
8
Bil
lio
n U
.S.
Do
llar
s
Bulk Intermed C-O Forest Seafood
2006 2007 2008
Foreign Agricultural ServiceSeoul, Korea
Agriculture: Market AccessAgriculture: Market Access
U.S. Export Successes: Record $6.1 bil in
‘08 #3 Beef #4 Consumer-
Oriented ($1.5 bil in ’08)
#4 Cheese Market #7 U.S. Rice Market
U.S. Export Challenges: Biotech
Approvals Documentation Labeling
Children’s Food Act No sale of high cal/low
nutrition near schools Ban on tar food
colorings Organic: ROK
Accreditation 2011
Foreign Agricultural ServiceSeoul, Korea
Agriculture: Market AccessAgriculture: Market Access
Korea-U.S. Free Trade Agreement Two-thirds of U.S. farm products become
duty free immediately. American Farm Bureau Federation predicts
agreement, once fully implemented, could provide $1.6 billion in additional U.S. ag exports.
Supported by more than 40 U.S. agricultural and food associations.
http://www.fas.usda.gov/itp/us-koreafta.asp
Foreign Agricultural ServiceSeoul, Korea
ResourcesResources
Attaché Reports at http://www.fas.usda.gov Exporter Guide Retail Food Sector Brief Food and Agricultural Import Regulations
(FAIRS) Briefs on organic sector, seafood, fresh
cherries, avocados, honey, grapefruit, nuts, wine, apples, tomatoes, grain, citrus, potatoes, dairy, beef, pork, chicken, planting seeds, grapes, asparagus, etc.
Foreign Agricultural ServiceSeoul, Korea
Thanks!Thanks!
www.FAS.USDA.gov
www.ATOSeoul.com
