South Korea's Ministry of Agriculture, Food and Rural Affairs has launched an assessment of potential impacts on the agricultural and food sectors amid escalating Middle East risks.
The ministry announced on the 1st that it has established a real-time monitoring system to minimize damage to the agricultural and food industries in response to recent international developments, including U.S. and Israeli airstrikes on Iran. The move aims to comprehensively review trade volumes and domestic stockpiles of raw materials and food crops while proactively responding to changing conditions.
The ministry assessed that short-term impacts would be limited, considering the relatively low share of direct trade with the region and current domestic inventory levels. However, it acknowledged that expanded volatility in exchange rates and international oil prices could indirectly affect agricultural and food exports, supply chains for agricultural materials such as feed, and international grain prices.
Rising international oil prices could drive up shipping costs and fertilizer and feed production expenses, while a sharp won depreciation could push up imported grain prices and increase domestic feed costs. The ministry noted that these factors could have cascading effects on livestock prices and processed food costs, requiring medium- to long-term risk management.
The ministry will continuously monitor related developments while strengthening coordination with the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance, and other relevant agencies. It plans to regularly review export and import trends, raw material prices, and inventory levels, gathering industry input to consider distribution and supply stabilization measures as needed.
"We will closely monitor the situation and respond immediately in close cooperation with relevant ministries to prevent any damage to the agriculture and food industries," Minister of Agriculture, Food and Rural Affairs Song Mi-ryung said.
