In CY 2001, the MMA-committed amount is 128,268 MT, on a milled rice basis. Since 1995 China has dominated the Korean rice market winning nearly all government controlled MMA rice tenders. Each year the Korean government fills its MMA commitment with low quality rice that is disbursed for non-direct consumption. Such quantity should drive up domestic stocks further as consumer demand declines and rice-based processed product restrictions remain. The 3-5 year outlook for grain demand in Korea remains promising given the economy.
Rice is the only grain produced in sufficient quantities commercially.
As domestic production is a non-factor, imports will be necessary for the country to meet its food and feed grain requirements which are expected to continue to expand. The feed grains imported will depend on relative price. Food grain imports will depend on food safety concerns over biotech enhanced grains. Table rice consumption is expected to continue to decline. The MMA rice quota and domestic stocks will continue to increase through 2004 given current government policies.