The situation in Ukraine is getting worse; the South Korean feed grain and starch industry are in an emergency

Published 2022년 3월 7일

Tridge summary

The article highlights the impact of the ongoing Russia-Ukraine conflict on the global agricultural market, with a focus on Korea's reliance on imports for its feed and food supply. Ukraine is a significant contributor to the global wheat and corn markets, accounting for 11.6% and 16.4% of exports, respectively. The article outlines the critical nature of the situation for Korea's feed industry, which depends heavily on imports, particularly from Ukraine, and details the efforts being made to mitigate potential supply chain disruptions and price increases through alternative sourcing and government interventions. Additionally, the article discusses the broader implications for the global grain market, including rising futures price indices and import price indices, and describes the government's actions to support various sectors and alleviate the financial burden, such as reducing tariffs and freezing soybean supply prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The world's eyes are on Ukraine. As Russia's invasion of Ukraine escalated day by day. Korea, which is thousands of kilometers away, is no exception. Ukraine is known as the “Bread Basket of Europe” because of its grain production. According to the U.S. Department of Agriculture (USDA), in 2021, Ukraine will account for 11.6% of world wheat exports and 16.4% for corn. Both items rank fourth in the world. The agricultural sector that is most anxiously watching the situation in Ukraine is the feed industry. Korea relies on imports for 90% of its feed grain, and imports 10% of its imports from Russia and Ukraine. According to the Ministry of Agriculture, Food and Rural Affairs, the inventory of the domestic feed industry on the 3rd is estimated at 3.5 million tons. Feed wheat can be used until early July and feed corn can be used until early June. If you include the amount contracted to bring into Korea, wheat for feed can last for another three months and corn for ...

Source: Nongmin