Tech talks between trading partners
May 24, 2023
SEOUL, SOUTH KOREA – This week, a delegation of U.S. rice exporters traveled here to hold meetings with U.S. government officials and importers regarding U.S. rice supply, quality, and the potential outlook for 2023 U.S. rice export sales to Korea.
Korea is regularly a top export market for all of U.S. rice by both volume and value, and has long been the second largest market for U.S. medium grain exports. In 2020, the U.S. and Korea signed a country-specific quota (CSQ) for U.S. rice, establishing an annual purchase commitment of 132,304 metric tons, in addition to annual technical discussions with industry and government to ensure the trade is mutually beneficial.
In addition to supply, quantity, and export outlook, participants discussed the current shipping logistics situation, citing some improvements in ocean freight rates and reliability as well as ability to source shipping containers. U.S. exporters are also continuing to work around the new regulatory framework in Korea that governs maximum residue levels.
“This visit to see our important trading partners in Seoul and Naju comes at just the right time as California finishes planting the 2023 crop,” said Michael Rue, California rice farmer and chair of the USA Rice Asia Trade Policy Subcommittee. “After several years of drought in California led to reduced sales to Korea in 2022, we are expecting a return to normalcy in terms of production and exports.”
Since the CSQ was signed, Korea has been a strong partner and worked with the U.S. to live up to their annual commitments, purchasing the full tonnage in both 2020 and 2021. Unfortunately, due to U.S. medium grain supply in 2022, export sales were limited to 36,160 metric tons.