South Korea aims big for 2010 farm exports

South Korea aims to export US$6.4 billion worth of farm products in 2010, up% from the forecast for this year, the government said Wednesday (Dec 30).

The Ministry for Food, Agriculture, Forestry and Fisheries said the sharp increase from the US$4.8 billion likely for this year reflects expectations that a worldwide economic recovery will fuel demand.

South Korea will strive to meet its growth forecast through market diversification and by selling more products in established markets like China and the US, said the ministry in its annual report. The country also plans to make headway into markets in the Philippines and Brazil.

The export figure has been intentionally set high for the new year even if the country failed to export US$5.3 billion in farm products this year as originally targeted, deputy farm minister Choi Hyung-kyu said.

He said setting high targets is to highlight the government's goal of shipping out US$10 billion worth of farm products by 2012. South Korea will also further expand international cooperation in the agriculture, fisheries and forestry sectors in the new year.

Cooperative arrangements with 16 agriculture companies in six countries such as Laos, Cambodia and Indonesia will permit the country to secure grain resources of 200,000 tonnes, he said.

South Korea also plans to spend KRW4.2 billion (US$3.6 million) to help train agriculture sector experts from developing countries, up from KRW2.8 billion (US$2.4 million) this year.

In the new year, the ministry will implement policies to reduce domestic livestock feed and fertiliser costs by KRW460 billion (US$396.4 million) and KRW100 billion (US$86.2 million), respectively, by streamlining overall farming practices and operations. Such efforts could help reduce on-year energy spending by 4.7% or KRW100 billion.

Cutting feed costs will involve introduction of more standardised ways of raising cows, pigs and chickens, and such measures could reduce consumer prices by 5%, said an official.