Too Much Rice In South Korea, While Japan Faces A Rice Shortage | CNA Correspondent

Key Concepts

Rice overproduction, rice price instability, government rice stockpiles, rice imports/exports, declining rice consumption, agricultural policy, rice farming challenges, food security, agricultural cooperatives, rice market reform, alternative rice products.

South Korea: Rice Overproduction and Government Intervention

• Main Problem: South Korea faces rice overproduction, leading to unstable rice prices and financial difficulties for farmers.
• Government Intervention: The government buys rice from farmers and imports rice to ensure food security. It also purchases "quarantine rice" to stabilize prices by removing excess supply from the market.
• Data: From 2021 to 2024, the government purchased 1.2 million tons of rice (approximately $1.9 billion USD) due to oversupply.
• Farmer Dissatisfaction: Farmers protest against rice imports and demand price guarantees.
• Export Opportunity: Japan, facing a rice shortage, bought Korean rice for the first time since 1999.
• Example: Mr. Park, a farmer in Haenam, illustrates the challenges of making a profit due to high rental costs and low rice prices.
• Haenam Province: Produces approximately 126,000 tons of rice annually, with about 25,000 tons purchased by the government as public reserves in 2024. The total government rice stockpile from 2022-2024 is around 400,000 tons.
• Rice Imports: South Korea imports about 13% of its rice consumption, roughly 408,000 tons annually.
• Challenges near DMZ: Farmers near the Demilitarized Zone (DMZ) face restrictions and security protocols, requiring cooperation with the Ministry of National Defense.
• Alternative Solutions: Farmers are considering exporting rice to Southeast Asia or Europe and developing individual brands to sell agricultural products.

Japan: Rising Rice Prices and Declining Consumption

• Main Problem: Japan is experiencing rising rice prices and declining rice consumption.
• Price Increase: Rice prices have doubled compared to the previous year, reaching an average of ¥2700 for a 5 kg pack.
• Government Response: The government is releasing emergency rice reserves, but stockpiles are rapidly depleting.
• Import Increase: Private sector rice imports are increasing, particularly from the US. In May, imports reached 10,000 tons, up from 1,000 tons the previous year.
• WTO Obligations: Japan imports 770,000 tons of rice annually under World Trade Organization (WTO) rules.
• Overproduction History: Japan experienced overproduction influenced by government policies.
• Agricultural Cooperatives (JA): JA handles 70% of crops harvested.
• Production Decline: Rice production has decreased from over 14.45 million tons in 1967 to less than 7 million tons last year.
• Increased Costs: Farmers are paying three times more for fertilizer compared to last year, potentially increasing consumer prices.
• Land Consolidation: One analyst suggests consolidating small-scale farms to improve efficiency.
• Political Challenges: Implementing land consolidation is difficult due to the influence of agricultural cooperatives.
• Declining Consumption: Rice consumption has fallen by 40% since the 1980s.
• Restaurant Preferences: Traditional restaurants prefer domestic rice despite rising costs.
• Alternative Rice Products: Bakeries are creating rice bread as a healthier alternative to wheat bread.
• Dietary Shifts: Younger generations are consuming less rice and more bread and noodles.

Synthesis/Conclusion

Both South Korea and Japan face challenges related to rice production, consumption, and market stability. South Korea struggles with overproduction and seeks export opportunities, while Japan grapples with rising prices and declining consumption. Government intervention, agricultural policies, and changing dietary habits play significant roles in shaping the rice market in both countries. The future of rice farming depends on adapting to these challenges through policy reforms, technological advancements, and innovative marketing strategies. The instability of rice supply could have an impact far beyond the dining table.