"Bae-chu Supply Expansion, Incentive per Head Raised to 900~1000 Won"
Choo Kyung-ho "Mandatory Rice Purchase Distorts Market... Must Ensure Sustainability of Rice Industry"
The People Power Party and the government have decided to immediately isolate 20,000 hectares (20,000㎡) of rice cultivation area to stabilize rice supply and demand. The party and government also announced measures such as an additional reduction of 10,000 cows to stabilize the supply of Korean beef. As a measure to stabilize the supply of Chuseok seasonal products, they decided to expand the supply of government-available cabbage and increase private shipment incentives.
On the 10th, Kim Sang-hoon, the Policy Committee Chairman of the People Power Party, stated after the 'Chuseok Seasonal Products Supply Check and Harvest Rice Price & Korean Beef Price Stabilization Measures' civil-party-government meeting held at the National Assembly, "Considering the current weather conditions, an oversupply of rice is inevitable this year." He added, "If excess production beyond the pre-isolation amount occurs when Statistics Korea announces the expected production volume in October, additional isolation will be planned," and emphasized, "After the final production volume announcement by Statistics Korea in mid-November, additional isolation will be considered based on market conditions."
The party and government agreed on the need for fundamental structural improvement measures to solve the recurring problem of rice oversupply. Kim, the Policy Committee Chairman, said, "To ensure appropriate rice production, we plan to raise the reduction target for rice cultivation area and actively implement it by considering the introduction of a cultivation area reporting system and a regional reduction area allocation system." He added, "We discussed various alternatives to impose incentives and penalties based on the results of the reduction area adjustments."
Along with reforming the rice grading system to increase the production of rice preferred by consumers, qualitative improvement plans will also be promoted, such as encouraging eco-friendly rice cultivation while excluding high-yield varieties from the distribution seeds. Measures were also introduced to expand demand creation, including expanding breakfast provision projects, supporting traditional liquor, and increasing new rice varieties including long-grain types. In his opening remarks at the meeting, Choo Kyung-ho, the floor leader of the People Power Party, said, "We are announcing rice price stabilization measures for the harvest season more than a month earlier than usual," and added, "Rather than a mandatory rice purchase system that distorts the market, responsible policies that maintain market functions while ensuring food security and the sustainability of the rice industry should be pursued."
In addition to the additional reduction of cows, the party and government will promote large-scale discount events and support for raw meat supply to group meals after Chuseok to resolve Korean beef supply instability. The repayment of 638.7 billion won in feed purchase funds for Korean beef farmers due next year will be extended by one year. The feed purchase funds for next year will also be maintained at this year's level of about 1 trillion won.
The party and government also discussed mid- to long-term development measures for the Korean beef industry to stabilize the management of Korean beef farms. The core is to support production innovation to achieve a self-sufficiency rate of 40% despite the elimination of beef tariffs in major countries. They plan to reduce the Korean beef raising period from 30 months to 24-26 months to cut production costs and promote the spread of smart barns to improve productivity. Furthermore, to strengthen the linkage between wholesale and retail prices, they will enhance the price leadership function of the NongHyup by encouraging price reductions by distribution companies. They also decided to gradually expand online and direct transactions, revitalize the aged Korean beef market, and develop new consumer markets by expanding export target countries.
For cabbage, which has a somewhat high price among Chuseok seasonal products, the private shipment incentive will be raised from the existing 500 won per head to about 900-1,000 won per head.
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