[Food Security in Crisis] "Value Difficult to Quantify in Cost"... Visiting Government Reserve Bases

Storage of Wheat and Soybeans at 14 Sites Nationwide Unable to Handle Volume... Need to Increase Stockpiling of Food Crops 'Directly Linked to Security'

Wheat purchased by the government is fully packed in ton bags (large sacks) at the Pyeongtaek reserve site.

[Asia Economy Pyeongtaek=Reporter Kim Hyewon] On the 27th of last month, upon entering the reserve base located in Block 11 of the Pyeongtaek Comprehensive Distribution Complex, three large storage warehouses on a vast site came into view at once. The Pyeongtaek reserve base, which began operations in 2008, is government-owned and is operated on consignment by the Korea Agro-Fisheries & Food Trade Corporation (aT). Namgung Eun, the manager met there, said, "There are a total of 14 reserve bases scattered nationwide, including 8 government reserve bases and 6 aT reserve bases," adding, "Since last year, the government has also been actively purchasing and stockpiling wheat varieties as part of strengthening food security."

The Pyeongtaek reserve base operates 7, 10, and 4 warehouses respectively in buildings A, B, and C from the right side of the entrance. In the first stop, Room A-6, which is about 180 pyeong (approximately 595 square meters), about 100 tons of soybeans packed in 20-40kg bags purchased this year were stacked. Next, in Room C-1, there were about 200 tons of wheat of the Jogyeong variety, mainly used for baking, tightly packed in ton bags. In both places, the indoor temperature hovered around 7 to 8 degrees Celsius, giving off a cool atmosphere. Manager Namgung explained, "Food crops like wheat and soybeans must be stored in low-temperature warehouses below 10 degrees Celsius to prevent damage from pests and mold," adding, "The quality management of the reserve base is carried out in three stages." Daily inspections and regular inspections on the 25th of each month are standard. For items like vegetables, which frequently change in quality, rotational inspections are conducted every 10 days to ensure thorough quality control. The wheat and soybeans purchased and stockpiled by the government are promptly distributed directly to demand companies or military supplies as needed.

Nevertheless, domestic reserve bases are unable to fully handle the volume. This is because there is a shortage of storage facilities to stock both imported and domestically purchased quantities. Manager Namgung said, "There are many cases where private warehouses are used through contracts with the private sector."

The government is reportedly purchasing wheat at 975 won per kilogram. The food self-sufficiency rate for wheat is 0.8%, so the purchased volume is still minimal. However, the next administration plans to strongly drive the increase of self-sufficiency rates focusing on wheat and soybeans as part of strengthening food security, making the additional securing of reserve bases to accommodate the volume an essential task. The establishment of grain-specialized reserve bases, which the government is promoting, is also expected to accelerate. With food security being a global issue, the efficiency of grain distribution and trade can only be achieved through economies of scale secured by large-scale collection, storage, and transportation facilities. Manager Namgung emphasized, "Food crops must be stockpiled at a certain level to enable response during wartime," adding, "This must be approached from the perspective of food security, which is a value of security that is difficult to quantify in terms of cost."

Grain reserve bases serve to stabilize domestic prices during normal times and act as mobilization resources in emergencies, making the stable securing of quantities directly linked to 'security.' From this perspective, Japan is a country with an advanced grain reserve system. Japan operates its major grain reserve system by supporting storage costs for the private sector, investing about 2 trillion won annually in subsidies alone. This allows private companies to store edible wheat for 1.8 months to respond to export bans imposed by various countries. Expanding to overseas supply chain responses, Japan entered the U.S. grain distribution market after experiencing a food crisis in the early 1970s, and China has also stepped into the international grain distribution sector through mergers and acquisitions (M&A) of state-owned companies. This is a strategy to promote the import of essential grains into their own countries during crises by participating in local grain value chains. Kim Jongjin, a research fellow at the Korea Rural Economic Institute, said, "It is necessary to expand domestic grain production and supply bases to respond to crises," adding, "Efforts to increase public stockpiling volumes must continue." The government plans to increase public stockpiling purchases of rice, wheat, and soybeans to 450,000 tons, 50,000 tons, and 55,000 tons respectively by the final year (2027) of the Yoon Suk-yeol administration.