USDA/FAS GAIN Report KS5050

Republic of Korea
Planting Seeds
Update of Trade and Production
2005

Complete report in PDF format: http://www.fas.usda.gov/gainfiles/200510/146131219.pdf

REPORT HIGHLIGHTS

REPORTS EXCERPT

Imports Up 5 Percent in 2004/05

In MY 2004/05, Korean planting seed imports increased to 14,759 MT, up 5 percent from the previous year.  Increased vegetable seed imports as well as herbaceous plant seed and tree seed imports offset slight declines in grass and forage seed imports.  The value of planting seed imports also increased to US$ 54 million, up 20 percent from MY 2003/04.

Trade data for the first three months of MY 2005 indicate that the United States will continue to be a major supplier of grass, forage and lawn seed in the Korean planting seed market in MY 2005.  As the government’s "Green Manure Plan" campaign is expected to continue through 2010, rye seed imports from the United States and Canada are expected to remain robust. 

Green Manure Campaign Driving Rye Seed Imports

The Korean government has encouraged farmers to cultivate forage for fertilizer in rice fields under the "Green Manure Plan" campaign since CY 2002.  Farmers have received a 100 percent subsidy for the cost of planting seed under the Green Manure Plan.  Planting seed imports of forages are expected to increase in MY 2005/06 to meet the greater demand generated by the government campaign.

U.S. Market Share Down Slightly in 2004/05

The United States maintained the position of the major supplier of grass and forage seeds in the Korean market.  In MY 2004/05, U.S. market share of grass and forage seeds in Korea decreased to 58 percent from 64 percent in the previous year (on a quantity basis) due to smaller imports of U.S. rye seed and other grass.  Increased imports of Chinese other grass and Canadian rye resulted in an increase in those countries’ market share.  The U.S. presence in the Korean seed market is strengthened by its broad array of seeds, such as: corn, rye, Lucerne seed, clover seed, ryegrass, timothy grass, fescue seed, Kentucky bluegrass, Sudan grass, orchard grass and lawn seed.

The U.S. share of the US$ 10 million imported grass and forage seed market stood at 58 percent, on a quantity basis, and 66 percent, on a value basis.  The United States’ competitive position in the imported grass and forage seed market should remain strong over the next three to five years due to superior seed varieties.   The U.S. garnered 13 percent of the $33 million market for imported vegetable seeds on a quantity basis and 6 percent on a value basis.

In addition to the United States, several other countries compete to supply planting seeds to the Korean market.  Australia supplies oat, sorghum, Lucerne seed and Sudan grass.  Japan supplies vegetable seed and herbaceous plants.  Canada supplies rye, oat, fescue seed and lawn seed.  China competes on the Korean market with Chinese Milk Vetch (within the category of other grasses) used for green manure purposes.  China also supplies herbaceous plants, fruit tree seed, vegetable seed, lawn seed and flower seed.

Complete report in PDF format: http://www.fas.usda.gov/gainfiles/200510/146131219.pdf

Note:  FAS/Seoul issues a full “annual” planting seed report on a biennial basis.  This interim report focuses chiefly on trade and recent developments.  The last full report (KS4044) is available at http://www.fas.usda.gov/gainfiles/200410/146117741.pdf. The next full report will be released in October 2006.