by PressSouth Korean milled rice yields are declining
South Korean milled rice yields hit by adverse weather conditions
South Korea’s milled rice yields have fallen by 2%, leading to revised production forecasts. FAS analysts estimate that 3.6 million tonnes will be harvested in 2025.
FAS forecast is based on farmland surveys. The experts have recorded crop losses in all fields. The reasons for the drop in production were:
— high temperatures during the ripening period of the crop;
— uneven distribution of rainfall at different stages of vegetation;
— plant diseases and pests.
The area under rice cultivation remained unchanged at 698,000 hectares.
Korean farmers are concerned about the extent of the brown planthopper infestation. Heavy rains combined with high temperatures in September triggered the infestation. As a result, crops were more severely affected than usual.
Local market characteristics of the crop
The cost of milled rice in South Korea continues to fall, causing concern among producers. Farmers are putting pressure on the authorities to take action to stabilise prices. In response, the government has announced a long-term strategy to modernise the rice sector. The programme aims to eliminate the oversupply of grain in the domestic market. The strategy includes:
— reducing the acreage under rice cultivation;
— implementing measures to improve grain quality;
— finding ways to increase demand for the product;
— enhancing the competitiveness of the domestic market;
— supporting research and development of high-quality rice varieties.
In addition, the government is exploring ways to introduce innovative technologies into the rice production process. This includes improving grain storage and transportation methods. Implementing these measures is expected to increase the sustainability of the local market and stabilise prices. This, in turn, will have a positive impact on farmers’ financial situations and strengthen the agricultural economy.
According to the FAS forecast, rice consumption for the 2024-2025 season will be more than 4 million tonnes, 4% higher than in the previous period. The increase in demand is due to government incentives that have expanded the use of rice in food, beverages, and animal feed.
Despite this, consumption of the crop is declining among local households. The trend away from table cereals is particularly noticeable among the younger generation. This population prefers alternative breakfast foods such as bread. Moreover, young Koreans often skip their morning meal. A KREI study showed that in 2024, only 68% of citizens chose rice for breakfast, compared to 83.5% in 2017. This trend has implications for demand and pricing. However, analysts expect the situation to change due to falling yields.