Seeking to mitigate the impact of rising global feed grains prices, the Korean government has announced several steps to support domestic feed millers and animal feeders. Mixed feed millers will receive up to 95 billion won ($84 million) in low interest loans in 2013 to help offset higher feed ingredient costs. This is an increase of 58 percent over the support level of $60 billion won ($53 million) this year. In addition, the government will indemnify interest on low interest loans to livestock and poultry farmers, up to a total of $150 billion ($133 million), to assist in purchasing feed.

The Korean government has also announced its intention to expand domestic production of forage for dairy and beef cattle, and has urged grains importers to diversify suppliers. The U.S. Grains Council’s Korean office will continue to work with buyers to encourage U.S. sourcing whenever possible, and to win back market share when U.S. production recovers.