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Canadian Barley Industry Needs CKFTA to Capitalize on Growing Market

CALGARY, ALBERTA -- (Marketwired) -- 06/12/14 -- The Barley Council of Canada (BCC) supports the federal government's efforts to move forward on the Canada-Korea Free Trade Agreement (CKFTA).

"We need a level-playing field to be competitive in South Korea," said BCC Chair Brian Otto. "By moving this agreement forward, Canada's barley industry is poised to capitalize on this growing market."

With the text for the agreement now formalized, it is imperative that the CKFTA remains a priority. Upon implementation, the CKFTA is expected to gradually remove historically high tariffs on Canada's agri-food exports. Currently, Canada exports over $600 million worth of agri-food products to South Korea every year-down from nearly $1 billion in 2011.

"The CKFTA will put us in line with the European Union, the United States and Australia, who already have trade agreements with Korea," added Otto. "The Korean market needs access to quality feed, malt and food barley, and Canada's value chain can fill that need."

The CKFTA is also expected to result in considerable benefits for the beef and pork industries. Canada's barley industry will reap the rewards of this as over 80 per cent of harvested barley goes towards feed production for livestock. This will also have a positive impact on malt, which Canada currently exports at a rate of 25,000 tonnes annually to South Korea.

With a population of over 50 million, South Korea is Canada's seventh largest trading partner. Canada is the world's fifth-largest agri-food exporter in the world, generating more than $40 billion each year through its beef, malting barley, pork, wheat and canola supply.

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