PRODUCT

Animal feed (Wheat , Maize, Oilseeds (Rape seeds, soyabe a ns

and ground nut).
REASON FOR EXPORTING ANIMAL FEED
It is very import ant to no! t!o things "
i) #ive sto$ se$t or of Rp of %orea.
ii) &rodu$tion of Animal feed in %orea.
LIVE STOCK SECTOR
OVERVIEW
'he live sto$ indust r y of the Republi$ of %orea has gro!n
subst ant i ally over a last de$ade. Rising personal in$omes
have led to $hanges in food $onsumpt i on habit s i.e. a fall in
use of the traditional RI()*+AR)#),*-I.'' diet and
in$reasi ng $onsumpt i on of meat (por) and of mil.
(ontinued personal in$omes is liely to lead to great er
demand for livest o$ produ$t s.
PIGS
After ri$e farmi ng, pig farmi ng $ont ribut es the most value
(/0 of tot al, to domes t i $ farm produ$ti on. 1ro!t h in
demand for pig meat has been subst ant i al in re$ent years.
.laught er levels have risen from 2 million in 34/5 to 6 million
in 3445.
&ig farmi ng has a$$el er at e d over last de$ade !hi$h led to
sto$ li7uidati on. As it !as profit abl e, medi um sized holding
!as appro8i mat el y 399* 699 pigs.
CATTLES
BEEF
Republi$ of %orean is about 590 self suffi$ient in beef.
A$$ording to offi$ial fore$as t , this rat e !ould rise to 490 by
344/.
'here is rising trend of number of holdings of beef $at tl e.
'he aver age no of head per holding has doubl ed from 2 in
34/9 to : in 3446. 'he number of medi um s$al e holdings,
i.e. of 69 head of $at tl e or mor e, has also regist er ed high
rise.
DAIRYING
Mil produ$ti on and $onse7uent l y per $apit a $onsumpt i on
have risen rapidly in last 39 year s. &rodu$tion is e8pe$t ed to
from 35;, 999 tons in 34/6 to 3./4 million tons by 344/.
'his in$reas e in mil yield is at tribut ed to genet i $
improve me nt progr a mme bet t er manage me nt , and superi or
7ualit y feed.
POULTRY
EGGS
&er $apit a $onsumpt i on of eggs has rea$hed a high level
(32: eggs per $apit a in 344:). -urther rises are e8pe$t ed,
the pro< e$t ed figure is around 354 eggs per person by 344/
in$reas e in egg produ$ti on have resul t ed due to improved
breedi ng, sel$etion and bet t er feed.
POULTRY MEAT
(onsumpt i on of poultry meat !as :.9 %g per $apit a in 344;
and is e8pe$t ed to rea$h :.6 %g by 344/. 'his !ould imply
that ther e is an annual aver age gro!t h rat e is around 390
!ith the in$reas e in $onsumpt i on, ther e is also in$reas e in
poultry farmi ng.
SUPPLY OF AND DEMAND FOR ANIMAL FEEDS
Almost =90 of the $ount r y is $lassified geogr aphi $ally as
mount ai ns, 330 as upland, and 360 as $rop land, !hi$h is
mai nly plant ed to ri$e. (onse7uent l y, ther e are se$ur e
$onst r ai nt s to its ability to supply its o!n feed ingredi ent s,
espe$i ally as ri$e $ontinues to be the st apl e food item. As a
result, Republi$ of %orea heavily depends on import ed feed
ingredi ent s to support its gro!ing live sto$ se$t or. >en$e
ani mal feed $onstit ut e an import ant import produ$t .
(onsumpt i on of $ompound feed has risen rapidly in re$ent
years as from the dat a above par agr aphs .
DOMESTIC FEED INGREDIENTS
a) 1RAI?. " Only a smell propor ti on of the domes t i $ harves t
of $orps is used for ani mal beedi ng. Of the grains, Maize
is the larges t sour$e of feed suppli es, but produ$ti on
tends to remai n at 399, 999 tons a year. Most
domes t i $ally produ$ed maize, e8$ept for that pur$has ed
by the gover nme nt , is used on the form. 1overnme nt
pur$has ed is sold to feed mills at a pri$e up to three times
higher than the landed $ost of import ed maize.
Only a very small amount of domes t i $ally produ$ed !heat is
used for feed purpos es (about 6999 tons of farm). As
!heat bring poor ret urns to produ$er, the gover nme nt
dis$our ages produ$ti on. It is also the $ase !ith .OR1>@M
!hi$h is least profit abl e $rop.
b) OI#.))A. " .oyabea ns are by far the larges t oilseed.
(orp gro!n in the Republi$ of %orea, the area plant ed to
rape and groundnut is $ompar at i vel y small. Aomes t i $ally
gro!n .oyabea ns are used almost entirel y on the farm
for food purpos es. Only 360 of the $rop is sold to the
gover nme nt .
$) Rapes e ed and groundnut s are $ultivat ed only in sout her n
part of $ount r y and produ$ti on $ontinues to de$line. 'his
has been due to la$ of suit abl e ne! gro!ing areas, the
s!it$hi ng of tradi tional produ$er to mor e profit abl e $rops
and $onver si on of land to other uses. 'he volume of
produ$ti on !ill de$line mor e st eepl y due to urbani s at i on.
'he $limati$ $ondition are also su$h that it doesnBt allo!
mor e than 2 $rop per season !her e as in India it is around
: $rops per season.
IMPORTS OF ANIMAL FEED
In ter ms of 7uanti t y and ma< or $ompet i t or s.
It has been already point ed out that feed grains, soyabe a n,
i.e. oilseeds !ill $ontinue to be leadi ng import ed feed
ingredi ent s.
Ingredi ent from @... en<oys benefit s due to $redit guar ant e e
by @... so ingredi ent s from other $ount ri es !ill have to
$ompet e on the basis of pri$e on the !orld maret .
GRAINS
In 344; : million tons of maize grains !ere import ed for
feed purpos es, of !hi$h ; million ton !as import ed from @...
almost all import ed sorghum is used for feed purpos es.
-avour abl e pri$e of !heat grains is also made it mor e
at tr a$tive to be import ed. It !as mai nly import ed from
Australi a. In 344; its import s !ere appro8i mat el y 29, 999
tons.
Maze is gener ally import ed by "
i) #ivest o$ is gener ally import ed by $orpor at i on
==. 60
ii) Mi!on (o. :.50
iii) Others
Import ant &oint s
Import s of maize are #I+)RA#IC)A
Import dut y of 290
Advalorem is payabl e
Aefen$e ta8 2.60
OILSEEDS
In 344; demand for soyabe a n gre! subst ant i ally over the
previous yearBs as demand for domes t i $ veget abl e oil
in$reas ed. +y 344/ the demand is e8pe$t ed to rise.
In 3443 it import ed 33;999 tons and in 344: it import ed
:4:999 ton (valued at D35= million).
Import ant &oint s
.oyabea ns are list of items !hi$h are approved by
Ministry of Agri$ult ur e and -isheri es.
Import dut y 290
Advalorem is payabl e
Aefen$e ta8 2.60
'he mai n import er s are "
.am<in )nt erpri ses In$.
.ambang 'rading (o. #td.
GORUNDNUT
Import sof groundnut s into Republi$ of %orea in$reas e by
mor e than seven times in 7ualit y an thirt een times in value
over the period, i.e. from 3236 tons (D3. 3 million) in 34/= to
33999 tons (D36 million) in 344:.
Again here the import s are mainly from @...A. and
devel opi ng $ount ri es.
'he mai n import er s are "
Ein Woo (ommer $i al (o.
%orea Woo (hang (o. #td.
'he offi$e of suppl y (O.RO%) import s groundnut s and
distribut es them through agri$ult ur al and fishery $orpor ati on.
Import ant &oint s "
Import of ground nut is under minist ri es $ont rol.
Import dut y 290.
Advalorem payabl e.
Aefen$e ta8 2.60.
Aemand is e8pe$t ed to rise.
RAPESEED (COLZASEED)
'he maret of rape seed is domi nat ed by (anada. Import s
of this produ$t in$reas ed five times by value bet !een 34/=
to 344:. Aevelopi ng $ount r y is tot ally abs ent in this area.
'he mai n import er of Rape seeds are "
.amyong -oods (o. #td.
Aong +ang Oil and -lo!rmills (o. #td.
Rape seed is rest ri$t ed items and import s are sub< e$t ed to
re$omme nd a t i on by Ministry of Agri$ult ur e and fisheri es .
'he only import $arrier is 2.60 defen$e ta8 (if allo!ed freely
tradeabl e).
TRADE INFRASTRUCTURE, TRANSPORT & STORAGE
1rain unloadi ng and storage fa$ilities are at the port of
@lsan, on the east $oast nort h of &usan, !hi$h enabl es the
$ount r y to handl e import s of feed ingredi ent s. 'hree firms
have est ablished @lsan .ilo (o. #td., !hi$h have a storage
$apa$i t y of 2:9, 999 tons.
At &usan, grain silos have a $apa$i t y of /;, 999 tons !ith
$onveyor s for :99 tonsF hour. Annual handling $apa$i t y is
about 2 million tons and around /9, 999 tons of feed
ingredi ent s are dis$har ged mont hl y.
'he other port, In$hon, has a t!o* silo syst e m oper ati ng as a
<oint vent ur e and handling ;99, 999 tons of feed ingredi ent s
a mont h. %orea .ilo (o. #td. oper at es t!o unloadi ng
syst ems , ea$h able to dis$har ge 399 tonsF hour of grain, and
has a tot al storage $apa$i t y of 369, 999 tons. 'aian +ul
'erminal (o. #td. also oper at es t!o unloadi ng syst e ms , ea$h
$apabl e of dis$har gi ng 3,699 tonsF hour of grainG it has an
over all stor age $apa$i t y of 3;, 999 tons.
&ro$ess ed $ompound feeds (i.e. mi8t ur e of maize, oilseed)
are trans por t ed from the mills to !holes al er s or dire$t to $o*
oper at i ves and farmer s in five* ton tru$s, prin$ipally in
st andar d bags of 26 %g. +ul deliveri es of feed to larger
farms are <ust begi nni ng, gener all y in 39* ton tru$s.
TRADINGPRACTICES, POCUREMENT SYSTEMS &
CONTRACTS
As st at ed earlier, %-A and ?#(- are aut hori sed to import all
feed ingredi ent s. Although the 1overnme nt no! allo!s
dire$t import s by individual feed mills, thes e mills !ill in the
short ter m probabl y $ontinue to rely on %-A and ?#(- for
their import needs, ther eby taing advant age of the
e8peri en$e and the fa$ilities of thes e asso$i ati ons.
'he 1overnme nt nor mally issues import li$en$es
aut omat i $ally to %-A and ?#(-. A$$ess to foreign e8$hange
(@nit ed .tat es dollars) and $resit does not appear to pres ent
any probl ems to import er s.
Most feed ingredi ent s are import ed on $. H f. ter ms, nut
f.o.b. ter ms, parti$ul arly for feed grains, are o$$asionally
a$$ept ed. A subst ant i al volume is obt ai ned by tender ,
maize, sorghum, soyabe a n meal and somet i mes rapes e e d
meal being pur$has e d in this manner . Agent s or bran$hes of
int ernat i onal shipper s in .eoul submi t bids to %-A and ?#(-
on the basis of publi$ invit ations to tender.
-.o.b. and $.i.f. pur$has e are made on the basis of ?A)1A
and 1A-'A $ontr a$t s respe$ti vel y, the importi ng asso$i ati ons
being responsi bl e for $hat eri ng shipping vess el s under
?A)1A $ont r a$t s. Individual buyer s and sellers vary the
basi$ $ontr a$t s as they see fit. )8port es $an obt ai n $opi es of
gener al provisions on bidding and of invit ations to tender
from the %orea -eed Asso$iation, +usines s Aepar t me nt .
After the import vess el arrives and $lear an$e is given by
gover nme nt inspe$t or s, the $argo is allo$at ed to the feed
mills. 'he mills pay the $ust oms duti es and other $harges.
)a$h feed mill parti$ipati ng in a shipment provides the ban
$on$er ned !ith a promi ssor y not e or guar ant e e in order to
obt ai n a lett er of $redit. In every $ase, the gover nme nt
$ome from the importi ng %-A member s.
NON TARIFF BARRIER
IMPORT APPROVAL
'he Ministry of 'rade and Indust r y (M'I) dra!s up the trade
progr amme of import s finan$ed from %oreaBs foreign
e8$hange reserves (%-I) import s funded overs eas leans are
det er mi ned by Ministry of -inan$e in $onsul t at i on !ith M'I
%-I import s are $lassified into 2 groups.
i) Automat i $ally approved (AA).
ii) Restri$t ed all import er s must apply for import li$en$e JIF#)
from aut hori s ed ban.
Automat i $ally approved items in$lude maize !her eas
rest ri$t ed items in$lude (soyabe a n, groundnut and
rapes e e d) .
If items are rest ri$t ed the import er shoul d tae per mi ssi on
from desi gnat ed gover nme nt agen$y. In this $ase %-A H
?#(-.
QUOTA REQUIREMENTS
'here is 7uot a rest ri$tion on !heat , soyabe an seeds,
groundnut seeds, and rape seeds.
IMPORT REQUIREMENTS
'hese are legal provision $on$er ni ng publi$ heal t h and safet y
and har mf ul $ontingen$i es asso$i at ed !ith import s of maize
and oilseeds. One !ill have to go through la!s. 'hese items
are $over ed under K1rains manage me nt a$tL, K-eed sto$
manage me nt a$tL, and K#a! on seeds of ma< or farm $ropsL.
-or maize and oilseeds ther e are some st andar ds !hi$h are "
3) Maize
(ont ent s
Moistur e
Aflatos$i n
A$$ept abl e level
3:. 60 ma8i mum
69 part s per billion ma8i mum
2) .oyabea n
(ont ent s
&rot ei n
Moistur e
-ibre
-at
A$$ept abl e
per$ent a ge
:: mini mum
32. 6 ma8i mum
= ma8i mum
9.6 mini mum
;) Rape seed
(ont ent s
&rot ei n
Moistur e
-ibre
-at
A$$ept abl e
per$ent a ge
;5 mini mum
33 ma8i mum
3; ma8i mum
9.6 mini mum
INSPECTION
(ust om inspe$ti on is $arried out on import ed goods to
$onfirm that their spe$ifi$ation $orresponds to that
appeari ng on the import li$en$e, to est ablish the appropri at e
$ust oms $ode number , tariff rat e and duti abl e value.
It is found not to the mar the $onsi gnme nt is send ba$.
PACKING AND LABELLING REQUIREMENTS
#abels must sho! the $ount ry of origin for import ed
produ$t s. +ags shoul d be number ed and $learly identified by
some mars, sin$e ther e are different e8port s. 'he e8port er
as !ell as import er has to sho! the 7ualit y test paper s and
other do$ument s at time of $ust om $lear an$e, !hi$h tae a
lot of time.
TARIFF BARRIERS
'he gover nme nt had introdu$ed tariff refor m !hi$h redu$ed
duti es to 290 for 490 of items. %orea also adopt ed
>armoni s ed (ommodi t y Aes$ription and (oding .yst em. It
uses 39 digit to $odify and $lassify 39, 3/= items.
CUSTOM DUTIES
Auties are largel y impos ed on an adval or e m basis, e8$ept
for 2; items liable to spe$ifi$ duti es.
Most feed ingredi ent s are sub< e$t to $ust om duti es !hi$h
$hange fairly fre7uent l y. 'he $ust om dut y has already been
menti oned !hi$h are sub< e$t to $hage.
'he Ministry of Agri$ult ur e and fishery has been studyi ng the
viability of a variabl e levy syst e m for grain and soyabe a n
import s !ith a vie! of raising import pri$es to the pri$e level
of gover nme nt farm pur$has e. +e$aus e import $ost in$lusive
of duti es tend to be !ell belo! the pri$e levels of domes t i $
$rops.
AUTO TARIFF
Was syst e m set up to balan$e the suppl y and demand of
import ed goods. It is intended to ad< ust the $onfli$t of
int er es t bet !een import er !ho sees lo! maret pri$es to
mae ne! sales, and the domes t i $ produ$er for !hom $heap
import s might lead to loss of e8isting outl et s, so to
dis$our age them dut y is in$reas e.
Rape seed may be in$reas ed to 390.
TARIFF CONCESSION OF THE BANGKOK AGREEMENT
In 34=5 +ango agr ee me nt !as a resul t of the first round of
trade negoti ati on among devel opi ng $ount ri es of ).(A& and
fo$used on tariff prefer en$es for produ$t of e8port int er es t to
them. 'he +ango agree me nt in$ludes " India, +angl ades h
Republi$ Of %orea H .ri #ana.
India also has bilat er al as !ell as e$onomi $ H te$hni$al $o*
oper at i on agree me nt s .
DOCUMENT REQUIRED
Do!"# $% N!"&#
' o(
o)* # +
Bo,- Co$#'$# ,
Import li$en$eF per mi t 3 Ministry of 'rade H
Indust ry
(ustoms entry 3 (ustoms Offi$e
&ort ent ry (ustoms Offi$e
(ustoms invoi$e 3 (ustoms Offi$e
(onsul ar invoi$e 3 %orean )mbas s y or
$onsul at e
(ommer $i al invoi$e 3 (ustoms Offi$e
)8$hange de$l ar at i on 3 -oreign )8$hange +an
Ao$ument ar y $redit 3 -oreign )8$hange +an
(ertifi$at e of origin 3 (hamber of (ommer $e
and Indust r y
>ealt hF s ani t ar y
$ertifi$at e
2 Inspe$ti on aut hori ti es
Muality $ontrol
$ertifi$at e
2 Inspe$ti on aut hori ti es
+ill of ladingF air!ay bill ; .hipping $ompani es
&a$ing list ; (ustoms offi$e
PROSPECTS FOR IMPORTS FROM DEVELOPING
'he feed indust r y is gro!ing rapidly and has already rea$hed
high levels of out put by Asian st andar ds. >o!ever, it has a
tenden$y to limit the number of feed ingredi ent s used and to
$on$ent r at e on a fe! ma< or suppliers. 'his, never t hel es s,
does not pre$lude import of non* tradi tional in small
7uanti ti es (say above 3,999 tons per annum) from
devel opi ng $ount ri es. -a$t ors su$h as 7ualit y, supply
reliability and pri$e $ompet i tivenes s are $ru$i al to ent eri ng
this maret . &ri$e $ompet i tivenes s is parti$ul arly import ant
in relation to @nited .tat es produ$t s, !hi$h are $over ed by
$redit guar ant e e s .
CONCLUSIONS AND RECOMMENDATION
'he feed indust r y of the Republi$ of %orea is a buoyant one,
and given the $ontinued rise in demand for live sto$
produ$t s e8pe$t ed over the ne8t five to ten year s, the
indust r y should e8pand st eadily. On the basis of $urrent
trends, $ompound * feed out put is liely to rise to some 4
million tons by 344/ from its e8pe$t ed 344: level of about 5
million tons. Mu$h of this vitality !ill depend on gover nme nt
poli$ies suppor ti ng $rop and livest o$ devel opme nt and the
import trade in ra! mat eri al for the feed indust r y.
'he st eady gro!t h in re7uireme nt s for import ed feed
ingredi ent s is liely to mae buyer s more fle8ible as regar ds
alt er nat i ve feed ingredi ent s provided thes e are $ompet i tivel y
pri$ed. Maret opport uni ti es ther efor e e8ist for e8port er s or
pot ent i al e8port er of feed ingredi ent s from devel opi ng
$ount ri es !ho $an offer a reliabl e flo! of $ompet i tivel y
pri$ed suppli es of sound 7ualit y.