October 22, 2005

USDA: Korea dairy product annual 2005

Korea imported $222 million of dairy products in 2004.  It is expected that total imports in 2005 will reach $250 million.

Although the Korean economy is likely to remain one of the fastest growing economies among OECD nations, it is predicted that consumption will remain sluggish in the last quarter of 2005 and in 2006.

Historically, Korea has produced a surplus of milk, as consumption is relatively low.  In order to assist the Ministry of Agriculture and Forestry (MAF) with this problem, a subsidiary organization, the Korean Dairy Promotion Association (KDPA) was formed. 

Among others whom are promoting dairy consumption is the Korean Dairy and Beef Farmers Association (KDBFA).

In the future, it is likely that KDPA will be dissolved and dairy farmers will work directly with the dairy industry in negotiating a price.  The government and industry believe that KDPA's role is not as relevant these days because of a reduction in herd size and a recent jump in dairy prices received by farmers. 

Per capita consumption of dairy products increased 2.4 percent in 2004 to 63.9 kilograms from 62.4 kilograms in 2003.

The current "well-being" trend emphasizes the consumption of healthy foods or functional foods; everyday items that can claim a health benefit. Some Koreans believe milk made from soy is better than cows' milk. The popularity of soymilk has grown dramatically as Korean consumers increasingly regard this drink to be a health food, as it contains less fat and provides other minerals not found in cow's milk, to be an alternative to dairy milk. 

Koreans also believe drinking yogurt aids digestion problems, resulting in many people-drinking yogurt, especially probiotic yogurt every day.

For the full USDA report, click here.