USGC reignites the long-standing relationship between the U.S. and Korea

Korea is a mature, sophisticated and highly price sensitive market, and Korean buyers do not hesitate to source from the Black Sea region, South America and South Africa as well as the United States. Using MAP and FMD funds, the USGC sought to reestablish relationships and convince Korean buyers of the United States’ ability and commitment to meet their corn quality and volume needs. While Korean buyers and end-users often express a traditional preference for U.S. corn, price is decisive. Last year’s drought-impacted crop and reduced export supplies significantly reduced the U.S. market share (what had it been before?) that approached the all-time low of 3.1 percent which occurred in the 2002/2003 marketing year. Throughout 2013, the Council provided timely market and technical information and customized trade servicing to Korean coarse grain import buyers and end-users to assure them of the U.S. long-term capacity, reliability, and commitment to the Korean market. One Korean delegation of buyers spent 10 days last October in Ohio, Missouri and Washington visiting a private farm, a terminal export elevator, a transportation facility and an ethanol plant. Following this team’s visit, Korea’s largest feed manufacturer, Nonghyup Feed, which had no trade activity with the U.S. corn industry in the 16 months prior to October 2013, purchased 70,000 tons of U.S. corn following the mission. Furthermore, the Korea Feed Industry bought 510,000 tons of U.S. corn, which marked their first purchase in 13 months. October 2013-June 2014 corn exports to Korea have reached 3.4 MMT, valued at $780 million, a significant recovery from the 295,856 MT exported in Oct-Sept 2012/13, valued at $101 million..