Australia Surpasses the USA in Wheat Exports for South Korean Millers
Australia and the USA have long been the primary suppliers of milling wheat to South Korea; however, Australian exporters are gradually strengthening their positions in this market. Over the past decade, Australia has significantly increased its export volumes to Korea, reducing the traditional advantage of American competitors.
This is reported by AgroReview
Change of Leadership in the Imported Wheat Market
According to the Korea Flour Millers Association, in the first half of the year, the seven leading milling companies in South Korea sourced 94% of all imported wheat from the USA and Australia. Australia’s share rose to 51%, amounting to 597,000 tons, while the USA supplied 43% — nearly 510,000 tons. In comparison, last year the USA led the market, but this year Australia has taken the top spot.
Factors Contributing to the Popularity of Australian Wheat
Traditionally, South Korea has been almost entirely reliant on American raw materials. However, since the 1990s, the country has actively diversified its imports, while Australia has expanded its export capabilities. An important factor in this was the free trade agreement between Korea and Australia, which came into effect in 2014 and provided for the gradual elimination of tariffs, fully abolished in 2018.
Australian producers have managed to adapt wheat to the preferences of Asian consumers. Wheat from Australia contains a higher protein content and has unique gluten properties, making it ideal for producing noodles with a soft yet firm texture. These qualities are particularly valued in the production of popular noodle types in Korea, such as ramen and udon.
“The rise in noodle consumption instead of rice also supports the demand for Australian wheat. According to industry statistics, the size of the Korean noodle market has grown from about 1 trillion won in the 1990s to nearly 3 trillion won in 2023. Major food companies often blend American and Australian wheat to achieve the optimal texture and quality of the final product.”
Thus, the key advantages of Australian wheat, along with changes in the consumption structure of milling products in South Korea, allow Australia to confidently compete and displace the USA in this important market.