South Korea introduces earlier supply controls for farm produce

South Korea will strengthen the management of agricultural supply from the planting stage under amendments taking effect on August 27, according to the Ministry of Agriculture, Food and Rural Affairs (MAFRA).

The system is designed to respond to possible oversupply before crops reach the market rather than relying mainly on measures after prices have fallen.

Central and local governments will work with producer groups on cultivation-area management. MAFRA plans to draw up an annual supply plan covering demand and production forecasts, target growing areas and measures to support stable output and supply. Producer organisations will also have a larger role in the committee responsible for major supply decisions.

The amended law also creates an agricultural price stabilisation scheme. When prices of selected products fall sharply despite supply-management measures, farmers will be eligible for compensation covering part of the decline. The products included and the payment ratios are due to be discussed by a new committee in early September.

source and photo: mafra.go.kr