K-Agricultural Food Overcomes COVID Crisis... Record High $4.1 Billion Export in First Half

Ginseng, Kimchi, Strawberries and Other Key Export Items
Noodles, Snacks, Beverages, Sauces Also See Rapid Export Growth

[Sejong=Asia Economy Reporter Kim Hyunjung] Despite the COVID-19 crisis, exports of Korean agricultural and food products have reached an all-time high. Increased demand for health foods has boosted the popularity of Korean ginseng and kimchi, while exports of convenience foods such as noodles, snacks, and sauces have also surged.

The Ministry of Agriculture, Food and Rural Affairs announced that the cumulative export value of agricultural and food products in the first half of this year (provisional) reached $4.154 billion (approximately 4.7052 trillion KRW), up 15.4% compared to the same period last year. This marks the highest export record for fresh agricultural products and processed foods as of June (provisional), with the growth rate (15.4%) being the highest in 10 years since 2011. Based on the first half of the year, export values were around $3.29 billion in 2017, increased to $3.46 billion in 2018, slightly decreased to $3.45 billion in 2019, and then reached $3.6 billion last year.

By category, fresh agricultural products increased by 11.4% to $720 million, and processed foods rose by 16.2% to $3.44 billion. By market, growth continues in both traditional key countries (Japan, China, United States) and new markets (New Southern Policy countries, New Northern Policy countries, EU). Among major growing items, fresh agricultural products include ginseng ($120.9 million, up 25.2%), kimchi ($86.8 million, up 20.1%), strawberries ($48.9 million, up 24.9%), and citron tea ($25.2 million, up 21.7%). Processed foods include noodles ($432.39 million, up 9.5%), snacks ($282.5 million, up 15.3%), beverages ($255.2 million, up 30.3%), sauces ($183.4 million, up 26.2%), and rice processed products ($78.3 million, up 25.5%).

Looking at the markets, exports of beverages, snacks, coffee, and sauces increased in the United States and China as COVID-19 vaccination rates rose and economic activities resumed. However, in Japan and New Southern Policy countries, the spread of COVID-19 led to increased demand for health foods and home meal replacements, resulting in growth in ginseng, kimchi, noodles, and rice processed products.

The Ministry of Agriculture, Food and Rural Affairs plans to implement tailored export expansion strategies by country, considering the COVID-19 situation, to sustain growth in agricultural and food exports in the second half of the year. In the United States, where economic revitalization is expected due to expanded vaccination, the ministry will collaborate with related agencies to create stable export conditions to resolve logistics difficulties faced by exporters caused by increased cargo volume and port delays. In the Chinese market, where consumer recovery is clear, large-scale consumer experience promotion events such as the K-Food Festival and item-specific customized marketing will be promoted.

On the other hand, in New Southern Policy countries and the EU region, where COVID-19 persists and the Delta variant is spreading, the focus will be on non-face-to-face marketing and promotion centered on home-use foods and convenience foods. Kim Jaehyung, head of the Export Promotion Division at the Ministry of Agriculture, Food and Rural Affairs, said, "We will continue to expand exports in the agricultural and food sector and build on the first half's achievements by implementing customized policies tailored to each country's situation to support our farmers and exporters."

This content was produced with the assistance of AI translation services.