Korean kimchi are imported from China

Korean kimchi are imported from China

The Ministry of Agriculture, Food and Rural Affairs (MAFRA) hopes to establish the market image of Korea as the birthplace of kimchi through the promotion of the domestic kimchi industry, so it proposes the “Comprehensive Plan for the Revitalization of the Kimchi Industry from 2018 to 2022 “. Recently, the consumption of kimchi has decreased due to the reduction in rice consumption, but the increase in the import volume of Chinese kimchi, which has a relatively low raw material price, has inhibited the status of Korean kimchi in the market. Amidst the crisis, MAFRA formed a working group in November 2017 to promote this comprehensive plan for kimchi, and at the same time brought together the opinions of experts in related fields and the kimchi industry to formulate the content of the plan.

This comprehensive plan for the revitalization of the kimchi industry focuses on increasing the price and quality competitiveness of Korean kimchi. In response to the increase in the import of Chinese kimchi, it is expected that the market value of kimchi will be raised through the cultivation of kimchi-related industries (such as kimchi sauce). The annual 180 billion won will grow to 350 billion in 2022; it also hopes to improve the quality competitiveness of Korean kimchi, and increase the market share of Korean kimchi from the current 65% to 70%; in addition, it is adjusted by promoting domestic consumption and product exports. The trade balance of the kimchi industry. This comprehensive plan contains 6 strategic goals and 24 tasks, the main contents are as follows.

Expand the scale of the kimchi market: from 180 billion (2017) to 350 billion won (2022).

Expand the market share of Korean kimchi: from 65% (2017) to 70% (2022).

Improving the trade balance of the kimchi industry: from the 47 million won deficit (2017) to no deficit in 2022.

Promotion Strategy 1: Assist Kimchi-related industries

MAFRA will strengthen the manufacturing and food safety management of pickled cabbage (pickled cabbage is a kimchi-related industry), and cultivate other kimchi-related industries such as kimchi sauce and home meal replacement (HMR). MAFRA will expand the production and supply of pickled cabbage in the main production areas of cabbage, and try to reduce the production cost of kimchi and improve the logistics efficiency. At the same time, it will assist the pickled cabbage industry and establish a network and investment of producers and kimchi manufacturers in the main production areas. Production facilities for pickled cabbage and manufacturing by-products (the market for pickled cabbage is currently about 180 billion won, and is expected to expand to 250 billion won in 2022). MAFRA will assist the kimchi sauce and the HMR industry using kimchi, and will also increase the research and development subsidies required to develop kimchi sauce that meets the local food culture and novel kimchi HMR products that meet the needs of the HMR market expansion.

Promotion Strategy 2: Enhance the competitiveness of Korean kimchi

MAFRA will introduce a labeling system, standardize and grade according to the taste and quality of kimchi, and develop new markets through the development of functional kimchi. At the same time, a standard index of kimchi taste (based on spiciness, saltiness and acidity) will be established, and Introduce a taste label classification system to provide more information about kimchi taste to consumers. In order to improve the production quality of small and medium-sized kimchi manufacturers, MAFRA will provide management guidelines for quality and high-quality production, and expand the provision of customized field technical guidance. In addition, in order to respond to the expansion of the health and elderly-friendly food market, MAFRA will strongly support the development of emerging types of kimchi, such as functional kimchi made using lactic acid bacteria.

Promotion Strategy 3: In response to the expansion of imported kimchi products and import volume

MAFRA will strengthen the management of imported kimchi, provide products suitable for different export markets to achieve export diversification and ease the concentration of exports to Japan, and also plan to increase the control of imported kimchi origin and raw materials. In order to reduce the production costs of kimchi, MAFRA will develop and promote kimchi production technology suitable for commercial and automated production equipment. Through the advisory group to assist in the implementation of a number of projects, the bargaining power of small kimchi companies will be improved the overall quality of the products. The government also plans to expand the scope of use of the “Korean kimchi voluntary labelling system” and issue certification marks to domestic kimchi manufacturers. In addition, MAFRA is also considering the introduction of “geographical indication on country name” to prevent the misappropriation of Korean kimchi trademarks abroad. The government also plans to assist in the development of products or recipes for export markets, such as kimchi dishes that combine traditional local cuisine, such as kimchi burrito that combines Korean kimchi and traditional Mexican ingredients (taco burrito).

Promotion Strategy 4: Increase public awareness of kimchi and promote its advantages

MAFRA plans to increase public awareness of kimchi and organize kimchi culture-related activities to promote the consumption of kimchi and expand the customer base of the kimchi market. MAFRA will also raise the awareness of young children and youth groups about kimchi, and will also hold cooking competitions, expand existing kimchi exhibitions to promote kimchi culture and expand the kimchi market customer base.

Promotion Strategy 5: Establish a governance system

MAFRA plans to establish a governance system, actively collect opinions from the kimchi industry, and implement the kimchi policy applicable in the field. It also plans to hold a kimchi policy forum jointly attended by the government, research institutions and the kimchi association.

Promotion Strategy 6: Stable supply of raw materials

MAFRA will expand the scope of the plan to stabilize the supply and demand of vegetables, and then stabilize the supply of kimchi raw materials. In order to strengthen the delivery management and stock of kimchi, MAFRA expects to add chili peppers to the vegetable price stabilization system from 2018. It also plans to coordinate the relationship between farmers and kimchi companies through deeds to promote a stable supply of kimchi raw materials.

All in all, the MAFRA plan and kimchi manufacturers and related organizations participate in the kimchi policy forum to ensure the effective implementation of the kimchi comprehensive promotion plan. The government strongly hopes that this plan will enhance the competitiveness of the domestic kimchi industry and establish the status of Korean kimchi in the market.

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