The government will jointly purchase 25,000 tons of barley with the distilling industry to prevent a price drop caused by this year's surplus production.
The Ministry of Agriculture, Food and Rural Affairs said Sunday that eight distilling companies have agreed to make a special purchase of excess 2026 barley output for use in distilled spirits production.
The move comes as a sharp rise in barley output and cultivation area this year has heightened concerns about falling farmgate prices. The ministry worked with the distilling companies and NH Agri Business Holdings to arrange the additional 25,000-ton purchase on top of the existing 40,000 tons covered under contract farming agreements.
The distilling industry agreed to participate in the special purchase despite a recent decline in demand for distilled spirits driven by falling alcohol consumption.
This year's barley output is forecast at 135,881 tons, up 47.3 percent from last year's 92,224 tons. Cultivation area also expanded 47.6 percent, from 25,234 hectares last year to 37,250 hectares this year.
The ministry said it expects the special purchase to absorb the surplus, ease the decline in farmgate prices and help stabilize farm household finances.
"Barley is an important food crop that requires a stable production base," said Jeong Hye-ryeon, the ministry's food policy director. "This special purchase will serve as a model case of businesses and agriculture growing together."
adastra@heraldcorp.com
