Japanese and Korean markets available to Ukraine.
Ukrainian exports are recovering after the collapse of 2020 caused by the pandemic. Against the backdrop of growing demand around the world, there is a potential for increasing supplies from producers of agricultural raw materials and food products, reports the Chronicle.info with reference to RBC-Ukraine. the largest export market for Ukraine not only in Asia, but also among all countries. In second place in the Asian region for Ukrainian exports — India.
Other large Asian markets account for small volumes of supplies from Ukrainian exporters. Among other things, the share of Japan — about 0.5% of exports from Ukraine, Korea and even less — 0.4%.
As can be seen from the study of the Enterprise and Export Development Office, Ukraine has much greater potential for more active trade expansion to these countries, especially when it comes to food and agricultural products.
Japanese and Korean food markets & #8212; import-dependent. About 60% of all food consumed by the Japanese is imported into the country from abroad. In Korea, this figure is even higher — 70%. Among imported food products, meat, fish and seafood, as well as grains are the most important.
Given the different population sizes, the volumes of these markets differ. Japan imports twice as much as Korea in all food categories except meat preparations — 6 times more, and cereals — 50% more.
And although imports of finished food products have been growing here in recent years, in Japan, due to the pandemic, in 2020 there was a drop in external supplies. At the same time, Ukraine, on the contrary, managed to increase the export of agricultural and food products to these countries — 81% to Japan and 25% — to Korea. The data of the State Statistics Service for 11 months of last year show that Ukrainian exports to Japan in these categories increased again (+5% compared to January-November 2020), while to Korea, on the contrary, fell — by 27.4%.
According to the Enterprise Development and Export Office, the priority product groups for imports to Japan and Korea include honey, frozen and processed fruits and vegetables, breakfast cereals, confectionery, and sunflower oil and meat. Far from much of this Ukrainian companies supply in large volumes.
The example of honey shows that the potential of food markets of these two countries for Ukrainian exports is clearly underestimated. For 11 months, Ukraine supplied honey to Japan for $3.51 million, which is almost 300% more than in the same period a year earlier. In general, 95% of honey in Japan — this is an imported product that comes mainly from China, New Zealand and Canada.
«In order to successfully export to these countries, Ukrainian companies first need to study the market well, communicate with local importers about their expectations and adapt their products to market requirements. In addition, it is important to remember that it is very important for partners from Japan and the Republic of Korea to build trust between partners, so you should expect a long game», — Olga Gvozdeva, Advisor to the Director of the Office for Entrepreneurship and Export Development, explained.