MAP and FMD Funding Boost Council Grow Korean Barley Market

Sales of U.S. barley and malting barley to Korea jumped significantly in 2012 thanks to implementation of the United States-Korea Free Trade Agreement (FTA) in March 2012 and to timely promotions of barley by the U.S. Grains Council, in cooperation with related organizations. The Council, in cooperation with WestBred, was instrumental to have a local barley polishing and wholesale company test polishing property, texture, taste and flavour of five U.S. food barley varieties. In partnership with McKay Seed Company Inc., the Council organized a seminar on U.S. barley production and marketing for Korean importers, distributors and end-users. The Council also assisted an Idaho Food Barley Trade Mission that visited with importer-distributers and end-users. The Council has played important roles in connecting local buyers and U.S/ exporters.

According to data from the Korea Customs Services, sales in 2012 reached 1,297 metric tons (56,000 bushels) with a value of $693,146 (U.S.), compared to essentially no sales in 2011. The U.S. barley, malt and malting barley was able to enter the country duty free under a new tariff rate quota that was part of the FTA – a critical factor in the sales. The initial 11,500 mt duty free amount of barley, malt and malting barley will grow 2 percent each year to 13,572 mt in 2025 with tariffs being completely eliminated in 2026. The safeguard duty will be gradually phased out, with tariffs being completely eliminated in 2027.