Research Reports
Valvatiom of Imported Rices and Their Substitution Effects on Korean Rices
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AuthorPark, Donggyu
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Publication Date2006.11.01
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Original
As a result of the rice negotiation in 2004, a portion of MMA(minimum market access) imported rice should be distributed for the final consumers in Korea. Although there is an increasing interest about the effect of the imported rices on the Korean rice market, due to the lack of experience, only a few research has been done with related to this issue.
This report investigates the distribution channels of imported rices and the formation of their prices in the Korean rice market. Although the available data is highly limited, using market prices and survey data, we draw three important implications.
Those are: first, the price of midium grain rice from the US lowers than short grain rice from China and the prices of imported rices lowers than Korean low degree rices in Korean market. This result implies that Korean consumers prefer short-grain rices rather than medium-grain rices, which is consistent with Japanese experience. second, there is a possibility that the imported rices affect Korean low quality rices in the future, which also a consistent with Japanese experience and implication of previous studies. Third, the premium of Korean rice is higher than that suggested by the previous studies. Compared to the US medium grain rice and Chinese short-grain rice, the average premiums are about 12,000won and 8,000won per20kg respectively.
Researchers: Park Dong-Gyu, Gue-Dae Cho, Hyun-Jeong Joo
E-mail address: dgpark@krei.re.kr
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