South Korea: Barley imports reach record volume in first nine months of 2022/23

Through the first 9 months of 2022/23, South Korea shattered previous records for marketing year (MY) barley imports. The nation imported 86,000 tonnes of barley through June, breaking the 2021/22 record of more than 74,000 tonnes for the full 12 months, USDA said in their August report.

The surge in imports can be attributed to an expansion of a tariff-rate quota (TRQ) for barley. The
expansion was implemented because of concerns of short supplies of wheat and corn at the outset of the Russian invasion of Ukraine. Australia, South Korea’s largest supplier, also has large exportable supplies this year. The TRQ’s expansion from 40,000 tonnes to 250,000 tonnes in 2022 has facilitated greater barley imports as a feed substitute. In 2023, the TRQ is set at 100,000 tonnes.

South Korea imports of barley have benefitted from more competitive prices. Unhulled barley for feed in South Korea, primarily for cattle and horses, is substitutable with wheat and corn. FOB barley bids from Australia have trended down over the past year, dropping from $342 on August 1, 2022 to $234 on August 1, 2023. Australia barley prices were consistently below average FOB prices for U.S. corn ($319/tonne) and Australia wheat ($359/ton) over the same period, due in part to lower demand from China for Australia barley and a bumper Australia barley crop in MY 2022/23.

Continued price competitiveness of barley is expected to support South Korea imports for the remainder of MY 2022/23. However, South Korea barley imports for MY 2023/24 are forecast to decline to volumes similar to those seen in 2021/22 on reduced exportable supplies from Australia, renewed demand from China for Australia barley, and lower prices for other feed grains.

12 August, 2023