The Korean market is also starting to develop and is now the second largest destination for forage products. Korea displaced Taiwan because of population, livestock numbers, limited arable land base, and a larger economy. This is quite a change from the early 1990's when alfalfa pellets were the main forage import with very few cubes and almost no hay or straw. The interest in alfalfa hay and the quality available from the United States has increased greatly between 1990 and 1997. Table 10 shows the Korean forage imports for January - July 1998.
Recent orders indicate an increased interest in Oregon grass straw.
Oregon grass straw is a substitute for rice straw and is cheaper than alfalfa hay or cubes. But, there is no substitute for alfalfa hay and cubes when dairies want to be more efficient and produce more milk. These large drops in demand for imported forages are a direct result of the economic turmoil in the Pacific Rim which started in December 1997. The International Monetary Fund financial rescue and resultant belt tightening has reduced forage imports by Korea. These effects will likely last for 1 to 2 years.