March 6, 2008

 

USDA sees decline in South Korea's soy market share as competition rises

 

 

USDA reported that soy exports to South Korea for the marketing year 2007-08 will go down as South America upgrades soy quality and India offers cheaper prices.

 

South Korea's soy imports are expected to remain flat at 1.2 million tonnes in 2007-08.

 

In 2008-09, the country's total imports of soymeal are expected to drop slightly to 107 million tonnes due to a lack of growth in the domestic livestock industry. 

 

However, the demand for US soymeal is expected to improve as local feed millers are beginning to recognize the value of dehulled meal. 

 

Demand for soy oil for the biodiesel industry will increase significantly to 490,000 tonnes in the coming year, the USDA said.

 

Total imports are expected to remain flat over the next three to five years as local crushers reached their maximum crushing capacity.

 

In Korea, approximately 75 percent of the imported soy is used for crushing, while the remaining 25 percent is used for food processing. 

 

In the 2006-07 marketing year, the country was the ninth largest consumer of US soy, down from eighth place the previous year. 

 

South Korea's domestic soy production is expected to remain limited despite government support programmes.

 

Oilseed imports are forecast to be robust as the local production is not seen sufficient to address the  local demand for feed and food quality soy.