The Ministry of Agriculture, Food and Rural Affairs (MAFRA), led by Minister Song Mi-ryeong, convened a sector-wide meeting on March 20, 2024, to address the effects of recent Middle East instability on Korea’s agriculture and related industries. The meeting aimed to review the current situation, including rising oil prices, freight rates, and exchange rates, and to gather feedback from industry representatives. MAFRA has been operating a Middle East situation monitoring channel, focusing on exports, international grains, processed foods, agricultural materials, and tax-free fuel. The ministry’s goal is to proactively identify risks and prepare targeted support measures for affected sectors.
Approximately 30 participants attended, including representatives from the Korea Smart Farm Industry Association, Samyang Foods, POSCO International, Korea Fertilizer Association, Namhae Chemical, Korea Feed Association, and others. Industry stakeholders highlighted challenges such as increased management costs due to currency and oil price fluctuations, supply chain disruptions, and the need for government support in logistics and raw material procurement. Notably, 38.4% of fertilizer raw materials (urea) are imported via the Hormuz Strait, raising concerns about price hikes and supply stability.
MAFRA presented updates on its monitoring activities and outlined future response plans, including diversifying fertilizer import sources to Southeast Asia and collaborating with relevant ministries to ease raw material procurement burdens. Export companies are supported through export vouchers and assistance for market transitions, with additional logistics support planned for those heavily affected by Middle East conditions. The ministry is also committed to ongoing price monitoring and securing grain and processed food supplies to prevent domestic price increases.
Frequently asked questions include: What is the government doing to stabilize fertilizer supply? MAFRA is diversifying import sources and working with agencies to prevent price hikes. How are export companies being supported? The ministry provides export vouchers, raw material funding, and plans to expand logistics support for companies exporting to the Middle East. What are the main risks identified? Increased oil prices, freight rates, and exchange rates are raising management costs and threatening supply chains, especially for fertilizer and exports.
Metaqsol opinion: The Ministry of Agriculture, Food and Rural Affairs is responding proactively to the risks posed by Middle East instability, particularly regarding supply chain disruptions and rising costs. By convening industry stakeholders and implementing measures such as diversifying fertilizer import sources and expanding logistics support for export companies, the ministry is addressing both immediate and potential long-term challenges. Continued monitoring and collaboration with relevant agencies are crucial to minimizing the impact on Korea’s agriculture and related industries. These actions reflect a practical and responsive policy approach based on the facts presented.