DUBLIN--(BUSINESS WIRE)--Research and Markets(http://www.researchandmarkets.com/research/8a0bbe/south_korea_agribu) has announced the addition of the "South Korea Agribusiness Report Q3 2011" report to their offering.
Even with the news that the worst of the livestock sector disease problems are now somewhat under control, the impact on both production and consumption is forecast to be significant. While consumption of grains and pork is forecast to fall, production of pork is expected to do so significantly, meaning that meat prices have risen in many areas of the country. These production concerns come at a time when the country is instituting measures to increase agricultural production to become more selfsufficient.
Key Trends:
- Milk consumption growth to 2015: -3.25% to 1.63mn tonnes. This will come as consumers continue to switch to other milk products such as soy milk. Korea's low birth rate will contribute to weak demand for milk powder as the use of baby formula drops.
- Wheat consumption growth to 2015: 16% to 5.18mn tonnes. This will be mainly due to feed wheat demand, which should increase towards the end of the forecast period when livestock production will expand.
- Pork production growth to 2014/15: -16% to 927,000 tonnes. The report expects that production will start to increase again towards the end of the forecast period once foot-and-mouth disease concerns are brought under control and farmers start to rebuild herds.
- 2011 Real GDP Growth: 4% (down from 6.1% in 2010; predicted to average 4.4% from 2010 until 2015).
- Central Bank Interest Rate: 3.5% in 2011 (up from 2.5% in 2010).
Industry Developments:
According to the South Korean agriculture ministry, a total of 120 foot-and-mouth and 26 H5N1 avian influenza cases had been reported in the country by January 12. After an emergency cabinet met to address the situation which has caused alarm in the livestock industry and among consumers, the government pledged to increase vaccinations and import more vaccinations to curb the further spread of the contagious animal disease. By January, approximately 15% of the country's total 12.4mn cattle and swine herd had been culled, with roughly 3mn poultry slaughtered after the avian flu virus strain was detected. As a result of the large-scale slaughtering and market closures, wholesale prices of beef and pork have soared by 9% and 22% respectively from December's average prices, compounding the government's uphill battle against rising food prices.
For more information visit http://www.researchandmarkets.com/research/8a0bbe/south_korea_agribu