New Blog- Rice exports to South Korea continue to shine

By Chris Crutchfield

It’s extremely encouraging that the popularity of California Calrose rice is really burgeoning among consumers in South Korea.  In 2004 this was a market that was importing low quality brown rice for processing from California only because it had to under its World Trade Organization (WTO) commitments.  Nine short years later, the market has transformed into a package quality milled rice market where retail, wholesale, and foodservice consumers are clamoring for California rice.  The premium quality rice they are vying for is grown, milled, processed, and packaged all right here in the Sacramento Valley.  It is shipped to South Korea in retail style 10 and 20 kg bags in 20-foot containers.  The brands have been developed by California companies.  Almost every week, a vessel sails from the Port of Oakland loaded with containers of California rice destined for the South Korean market.

The USA Rice Federation and the California Rice Commission (CRC) are actively promoting Calrose rice in South Korea.  Through tie-in promotion with wholesalers and E-tailers to in-store promotions with retail outlets -- California rice has become the most popular imported rice in the market.  And, it's readily identifiable by the name "California Calrose.” This is especially important as we enter into the next round of negotiations on the rice trade with the South Korean government in 2014.  It is key that consumers in South Korea continue to demand California grown Calrose rice.  One of the methods the CRC has employed to make sure this happens, is by offering a "California Calrose" logo to exporters to place on their bags in the South Korean market so that consumers are sure about the product they are buying.  All of these promotion efforts are paying off.

Recently, aT (the government buying/selling agency in South Korea) was forced to suspend the weekly auctions of California rice.  The reason -- consumers refused to bid on Chinese and Australian rice and were buying aT out of its California rice stocks!  Don't worry; the weekly sales are set to resume soon.  As our industry faces stiff competition all over the world from other cheaper producing origins, South Korea is certainly a bright spot in our marketing future.