S. Korea to create 2 tln won processed rice market by 2012

By Lee Joon-seung
SEOUL, Nov. 25 (Yonhap) -- South Korea will push to double its rice-based
processed food market by 2012 to reduce foreign grain imports and help local
farmers, the government said Tuesday.
The plan calls for the size of the market to be expanded to 2 trillion won
(US$1.3 billion)in the target year from 1 trillion won in 2007, the Ministry for
Food, Agriculture, Forestry and Fisheries said.
It said the expansion will push the total amount of rice used to make processed
food from 220,000 tons to 440,000 tons, with grain imports being reduced by
around 55.0 billion won on a annual basis.
"The plan is designed to help balance out supply and demand that have been hurt
by a sharp drop in domestic consumption," said Lee Chang-buhm, head of the
ministry's food policy bureau.
In 2007, rice consumption dropped to 3.79 million tons from 4.15 million ton in
2002.
He added that greater consumption of rice could help cut state spending needed to
maintain stockpiles of unsold rice, create 3,200 new jobs and help manufacturers
that currently use imported wheat in many of its products. Wheat prices have
soared in recent years which have hurt profit levels of companies.
South Korea is self-sufficient in rice but imports 99.9 percent of its wheat from
abroad.
To increase market size, the ministry plans to sell rice it holds in stock on par
with international wheat prices and support development and marketing of
rice-base liquor, noodles and cookies that use large quantities of the grain. It
will also increase instant cooked rice products and fuel demand for ddukboki, a
spicy rice stick, that is gaining favor with both local consumers and foreigners.
yonngong@yna.co.kr
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