Paprika exports plummet due to prolonged low yen phenomenon

Published 2024년 6월 21일

Tridge summary

The article highlights the challenges faced by South Korean paprika exports due to Japan's 'low yen phenomenon', which has led to a decrease in demand as the policy lowers the value of the yen, resulting in lower prices for Japanese products and higher import costs for Japan. This has significantly impacted South Korea's paprika exports, which primarily go to Japan, causing a 34% decrease in the first five months of this year compared to the previous year. In response, the South Korean government is strategizing to diversify both the paprika cultivars and export destinations, including countries like Hong Kong, Vietnam, and China, by introducing new domestic varieties for export and implementing contract cultivation strategies.

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

Original content

As the ‘low yen phenomenon’ continues, paprika exports are struggling. The government is responding by diversifying the cultivars and export countries of paprika, which almost entirely goes to Japan. According to the Korea Customs Service's import and export trade statistics, the amount of paprika exported through May of this year was 5,012 tons, a 34% decrease compared to the same period last year (7,624 tons). In 2021, 27,433 tons were exported, but the number slowed down to 26,794 tons in 2022, and last year it was only 21,650 tons. It decreased by 21% compared to 2021. The slump in paprika exports is closely related to Japan's exchange rate policy. Japan has lowered the value of the yen as a policy starting from 2022. This has the effect of lowering the dollar-denominated prices of Japanese products, helping to expand exports of Japanese products. However, it has the disadvantage of lowering consumer sentiment by raising import prices in Japan. The average won-yen exchange ...

Source: Nongmin