March 25, 2011

South Korea to enlarge wheat, soy cultivation area

The South Korean government will curb rice-producing areas by 16% and amplify areas significantly for wheat, soy and corn cultivation by 2015.

The government made the decision on grounds that Korea is far short of domestic production of the three grains, while rice yields are in surplus throughout the country. The government decided to provide KRW3 million (US$2,678) in subsidy per hectare for farmers who raise alternatives to rice.

The Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF) said on Thursday (Mar 24) it plans to renew its strategy for grain cultivation, coordinate with related government agencies and announce the new strategy next week at the earliest.

Considering the current domestic demand for rice, the appropriate rice yields for Korea are 3.7 million tonnes. However, the government estimates that recent rice yields have reached as much as 4.45 million tonnes in the recent three years.

However, the situation is totally different with other types of grains. Korea imports 14 million tonnes of pricey wheat, soy and corns from other countries every year, because of the country's low sufficiency rates for the grains.

To tackle the dilemma, the government plans to cut the area of rice paddies from 890,000 to 700,000 hectares, a level that is regarded as appropriate, by 2015 through providing subsidies.

Of the 190,000 hectares that will be turned into areas for other grains, 60,000 hectares will be saved for wheat, soy or corns, as farmers are likely to switch to the alternatives voluntarily. For a total of 40,000 hectares out of the rest 130,000 hectares, farmers will be encouraged to produce alternatives to rice in return for KRW3 million (US$2,678) per hectare in annual subsidy. The remaining 90,000 hectares will be used for raising specialty rice for processing and crops for cattle feed under the government's intention.