Asians Turning to Wheat Instead of Rice... Even Food Security Shaken

Rising Wheat Demand but Taxes Applied to Rice
Nikkei: "Asia's Vulnerabilities Exposed"

Jo Su-jin, a Supreme Council member of the People Power Party, proposed the 'Empty a Bowl of Rice Campaign' on the 5th but faced criticism from both ruling and opposition parties. It was an alternative to passing the 'Grain Management Act Amendment' (Grain Act), which includes mandatory government purchase of surplus rice, but questions have been raised about its effectiveness.

The conflict between the ruling and opposition parties over the Grain Act fundamentally stems from the issue of 'surplus rice.' Domestic rice consumption cannot keep up with farmers' rice production, causing rice prices to plummet. The Democratic Party of Korea tried to pass the Grain Act to alleviate farmers' hardships, but the government vetoed it, citing it as 'market distortion.'

Economic and political turmoil caused by excess rice is not unique to Korea. Over the past decade, rice consumption in Asia has rapidly declined, replaced by wheat. This has resulted in a 'paradox' that negatively affects government finances and food security.

Not Only Korea... 'Wheat' Foods Replacing Rice on Asian Tables

Bread is becoming a new staple food in Asian countries, including Korea.
[Image source=Yonhap News]

According to data from the U.S. Department of Agriculture, rice consumption in Asia increased by 14% from 2000 to 2021. However, wheat consumption rose by 34% during the same period, more than double the growth rate. As of 2021, Asians consume over 400 million tons of rice and about 337 million tons of wheat. Compared to wheat consumption of around 200 million tons in 2020, this represents explosive growth.

Countries where both rice and wheat consumption are increasing include developing countries such as the Philippines and Vietnam. These countries experience overall growth in food ingredient consumption as their economies develop. In contrast, countries like Korea and Japan, which have long reached advanced nutritional levels, are seeing a decline in rice consumption compared to the past.

According to the '2022 Grain Consumption Survey Results' released by Statistics Korea on January 27, last year’s per capita annual rice consumption was 56.7 kg. This is a 15.6% decrease compared to 67.2 kg in 2013, nine years earlier. Wheat consumption was 36.9 kg, already exceeding half of rice consumption. While the proportion of meals eaten with rice is rapidly decreasing, processed foods made from wheat or bread are becoming a new lifestyle staple.

The Paradox of Surplus Rice... Increasing Fiscal Burden and Vulnerable Food Security

Southern Ukraine Wheat Granary
[Image Source=Yonhap News]

The increase in wheat consumption alongside the decrease in rice consumption can negatively impact national finances as well as food security. In October last year, Japan’s Nikkei newspaper published an article titled "Rising Wheat Demand Exposes Asia’s Vulnerabilities," covering this issue.

Generally, Asian countries are known not to have optimal conditions for wheat cultivation. For a long time, rice was the staple food for Asians, including Koreans. However, as wheat-based foods gained popularity in the 21st century, domestically available rice has become surplus, and imports of foreign wheat have surged.

Moreover, the Russia-Ukraine war has severely disrupted the global wheat supply chain. Asian countries dependent on imported wheat are "particularly exposed to geopolitical risks," according to Nikkei’s analysis. Nikkei emphasized, "Considering rising tensions in the Taiwan Strait, the Asian food crisis is not an unrealistic scenario," and added, "The ability of Japan and other Asian countries to solve food problems will be put to the test."

In fact, Korea’s wheat self-sufficiency rate is only 0.8%. In 2022, wheat imports for food use reached a record high of 2.6 million tons. The import value was $1.15002 billion (approximately 1.4857 trillion KRW, based on an average exchange rate of 1,291 KRW/USD).

Meanwhile, the amount of surplus rice produced due to plummeting demand continues to increase, causing rice prices to collapse. From the government’s perspective, which must preserve farmers responsible for domestic food security, it has no choice but to purchase a certain amount of public stockpiled rice. This creates a dilemma where tax money is spent on buying rice that will not be consumed, while dependence on foreign food increases.

Reducing Rice Production and Increasing Wheat Self-Sufficiency

The government is currently focusing on gradually reducing rice production and increasing wheat self-sufficiency. On the 8th of last month, the Ministry of Agriculture, Food and Rural Affairs announced that this year’s target for rice cultivation area was set at 690,000 hectares, down 37,000 hectares from 717,000 hectares last year.

The wheat self-sufficiency target is set at 5% by 2025 (cultivation area of 30,000 hectares, production of 120,000 tons). Since 2020, the government has been fostering specialized wheat production complexes and promoting projects to improve the quality of domestic wheat.

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