Source: Oleoscope (Russia)
A report from the USDA Foreign Agricultural Service (FAS) indicates that the South Korean government’s initiatives to convert rice fields into different crops have led to soybean production reaching its highest level in 20 years and a peak in planted acreage over the past 12 years.
Despite imports making up 89% of South Korea’s overall soybean supply, domestic production is projected to rise to 160,000 tons in marketing year 2025/26, reflecting a steady increase in recent years, as reported by World Grain.
“The area dedicated to soybean cultivation has consistently expanded over the last five years, nearly doubling production during the 2020/21 season,” the agency reported.
To foster sustainable growth in local soybean production, the South Korean government is contemplating strategies that would promote the consumption of locally made soy products, which “could result in further area expansion in the future,” as mentioned in the report, which references a study conducted by the Korea Institute of Rural Economics.
Processing demand, and consequently soybean imports, are anticipated to remain stable, as market conditions compel processing plants to function at 15-20% below last year’s levels. Total imports are expected to stay under 1.1 million tons, approximately 100,000 tons less than the average.
“With reduced processing activity, Korea is likely to keep a consistent supply of soybean meal available for the domestic animal feed market due to both imports and diminished stock levels,” FAS noted. The agency also highlighted that processors are accumulating increasing quantities of soybean oil imported for the 2023/24 season.
FAS further observes that the government’s exemption of import duties from 2022 to 2023, aimed at alleviating inflation in South Korea, has resulted in heightened soybean oil imports from South America and Southeast Asia, leading to increased stockpiles.