Changing World Grain Market and Direction of Korean Grain Policy

The recent price surge of world grains is attributed to the following: On the supply side, major grain exporting countries such as Australia had a bad crop amid global warming. On the demand side, the demand for grains used as foodstuff climbed in BRICs and other emerging countries due to rapid economic and income growth, the demand for grains used as animal feed also rose owing to increased meat consumption, and the demand for grains used as alternative energy source increased as well with international crude oil prices soaring consistently. Since the second half of 2008, international grain prices have fallen back. Recently, however, soybean prices started rising again. Now, the world is keeping a close watch on the possibility of international grain prices skyrocketing just as they did in the past. In this paper, we forecasted international grain prices for the mid-tolong term considering the factors affecting global grain supply and demand. We reviewed the global supply and demand trend of grains and the factors affecting international grain prices based on our mid- to long-term projection for international grain prices and suggested several countermeasures.