`Agriculture as growth engine'

Suh Kyu-yong, minister for food, agriculture, forestry and fisheries

Gov’t strives to boost food exports, globalize ‘hansik’

By Lee Hyo-sik

Korea should foster its agricultural and fisheries industries as twin parts of a new growth engine over the next decade by boosting food exports and globalizing ``hansik,’’ Korean cuisine, according to the country’s top agricultural policymaker.

In an interview with The Korea Times, Suh Kyu-yong, minister for food, agriculture, forestry and fisheries, said the future of the nation’s agricultural, livestock and fisheries sectors is bright, projecting Korea will soon be competing with other agricultural powerhouses.

``The international crops, livestock and fisheries market stood at $5.8 trillion in 2010, larger than the combined revenue accrued from both the information technology and automobile sectors. It will continue to expand in the future in line with world population growth. It is important for Korea to secure larger shares in this rapidly growing industry,’’ Suh said.

The minister said opening up the domestic agricultural market to foreign competition presents farmers here with both risks and opportunities. `When we open our door, foreign countries have to do the same. This provides local farmers with access to new markets. The government will do everything it can to help modernize agricultural infrastructure and nurture a new generation of farmers.’’

Korea also plans to continue to promote hansik abroad, boost food exports, strengthen food security and develop lucrative agricultural seeds.

Globalizing hansik

The nation has spent tens of millions of dollars over the years on promoting its traditional cuisine with the aim of becoming the favorite of diners across the world.

TV broadcasters in Europe and the United States aired a series of documentaries on various Korean dishes in order to increase awareness among Westerners. Foreign newspapers and magazines regularly carry stories on what Koreans eat.

The government has also been offering non-Koreans free cooking classes at its oversees cultural centers and providing assistance to restaurants with Korean cuisine on their menus through financial and material support to help them develop dishes and upgrade services, attracting more diners.

All these efforts have come to fruition as the nation’s food gains increasing popularity among non-Koreans.

``It took more than 20 years for Japan to globalize sushi. But we can make hansik a favorite diet for non-Koreans around the world in only five to six years. We think this is possible thanks to hallyu, or the Korean cultural wave sweeping across the world,’’ Suh said.

The government has so far spent over 87 billion won since 2009 towards this end, he said. Adding that an increasing number of foreigners are becoming aware of Korean food and there are more restaurants across the globe serving diverse Korean dishes.

According to a recent ministry survey, 41 percent of New Yorkers either tried or are willing to eat hansik in 2011, up from 31 percent in 2010 and 9 percent in 2009.

Four Korean restaurants, including Danji in New York and Matsunomi in Tokyo, earned stars from Michelin Guide, an internationally renowned travel guide. Additionally, high-end restaurants not only in China and other Asian countries, but also in the United States have begun serving various Korean dishes.

``In France, you cannot eat at Korean restaurants unless you make reservations several days ahead. The growing popularity of Korean food there is largely thanks to hallyu among young French. This shows how interconnected food and culture are,’’ the minister said.

The government has been developing dishes suited for people in different countries and improving the image of local cuisine. It has employed a two-track policy; localize hansik for each foreign country and develop recipes for bulgogi, gimbap and other Koreans dishes tailored to each market.

``We also need to promote hansik as a high-class cuisine. We have completed standardizing Romanized names for each dish. The government has and will extend more financial and material support to those opening Korean restaurants overseas,’’ Suh said.

Through all these concerted efforts, hansik will become one of the world’s top five cuisines by 2017, he said.

Boosting food exports

Korea seeks to generate over $30 billion by 2020 from shipping a wide range of crops, fisheries and processed food products abroad, and emerge among the global top 10 food exporters.

To achieve such an ambitious goal, it plans to help nurture globally-competitive food companies, diversify export markets, and select and promote dozens of key items targeting specific regions.

``Korea is expected to export both raw and processed food products worth up to $10 billion this year, up sharply from $7.7 billion in 2011,’’ the minister said. ``Besides Koreans residing overseas, non-Koreans in Asia and other parts of the world have begun adding Korean groceries to their shopping list, thanks largely to hallyu.’’

This indicates the local agricultural sector has become more competitive and the opening of the international agricultural market could be a golden opportunity for food exporters here.

``Korea should learn from countries like the Netherlands and Denmark, which earn large sums of hard currency by shipping high value-added agricultural products. The future lies beyond borders,’’ the minister stressed.

But Korea still has a long way to go for the food sector to catch up with other flourishing industries. Overseas shipments of food products accounted for only 1.4 percent of the nation’s exports last year, substantially lower than the average 10.2 percent for global top 10 exporters.

The nation also relies too much on Japan as the world’s third largest economy imports nearly 31 percent of Korea’s overseas food shipments in 2011. China, Southeast Asia and the United States account for 15.5 percent, 13.4 percent and 7.8 percent, respectively.

``To raise Korea’s overseas food shipments to $30 billion by 2020, the ministry recently unveiled strategies. First, we will prioritize nurturing 29 strategic food items targeting specific foreign markets,’’ Suh said.

The government plans to extend financial aid to farmers, amounting to 10 trillion won over the next 10 years, to help modernize farming facilities and upgrade distribution channels, while diversifying overseas markets to expand shipments of food products.

In a bid to further increase food exports, Korea will also invest 553.5 billion won to create a food industry cluster named Foodpolis in North Jeolla Province by 2015.

According to the government’s plan, over 150 local and international food companies and 10 research centers are expected to produce a wide range of food products, as well as conduct research and development activities. The cluster is designed to help boost the nation’s food exports to Japan, China and other Asian nations.

Those operating in Foodpolis will receive tax breaks and other administrative benefits. The ministry has so far signed a memorandum of understanding with 54 companies and research centers, including 14 from overseas.

Ensuring food security

Touching on the soaring prices of wheat and other grains in recent months as a result of bad harvests in the United States and other cereal exporters, Suh said Korea will likely face deteriorating food security.

The country is one of the world’s top five cereal importers, buying more than 13 million tons of wheat, soybeans and other grains annually.

``Alarm bells have been ringing for the nation’s worsening food supplies due to poor harvests at home and abroad, caused by unfavorable weather conditions. In particular, livestock farmers have been hit hard by surging prices of animal feeds,’’ the minister said.

He said the government will help boost the production of wheat and other grains. ``We will secure farmlands overseas to bring more grains into the country to achieve greater stability. We will also encourage private businesses to do the same by extending more support beyond financial commitments.’’

In recent years, a growing number of Korean firms, including Daewoo International and Hyundai Heavy Industries, have rushed to secure large farmlands abroad to produce wheat, soybeans and other grains, in anticipation of high international cereal prices.

In a bid to further ensure food security, it is crucial for Korea to nurture the cereal industry, the minister stressed, saying local farmers pay hundreds of millions of dollars each year in royalties to foreign seed producers for growing grains and other commercial crops.

``The amount is growing at an explosive pace year after year as they cultivate more flowers, vegetables and other high-valued commercial plants, while shying away from rice and other traditional crops. To help reduce such royalty payments and find a new growth engine in the crops sector, we will foster the domestic grain industry by investing $2 billion over the next 10 years,’’ Suh said.

The local seed industry has been lagging far behind that of the United States and other advanced countries.

Many grain producers here were acquired by Monsanto and other multinational agricultural firms following the 1997-98 Asian financial crisis. As a result, Korea’s grain self-sufficiency for fruits, flowers and other commercial plants has been low.

``We would like to change the current trend to ensure that the country becomes a global powerhouse in the seed industry over the next decade. The grain industry is projected to reach $46.8 billion in 2015, up sharply from $37 billion in 2010. We would like to get a big piece of this rapidly growing industry,’’ he said.

Korea should make all-out efforts to nurture the grain industry as a new growth engine, adding that it holds the key to the nation’s food security.

The nation cannot fully ensure food security without possessing independent varieties for grains and other crops widely consumed by Koreans, the minister said.

In May, the agriculture ministry unveiled a five-year plan to spend $2 billion over the next 10 years to build a grain research center and help bolster grain production.

Among other measures, it plans to push a ``Golden Seed’’ project, designed to develop superior grains for rice, green pepper and other agricultural products for export.

``We will also extend financial and material support to seed companies to help them make inroads into foreign markets. We will provide them with market information on China, Indonesia and other Asian countries,’’ Suh said.

The government wants to see the country’s grain exports increase to $200 million in 2020 and $3 billion in 2030 from the current $30 million.