Pet food whose import amount is more than twice the export amount... Trade balance deficit for 11 consecutive years

Imports are more than twice the exports... Trade balance deficit for 11 consecutive years

The export support budget has increased fivefold in two years, but exports remain stagnant.

(Seoul = Yonhap News) Reporter Cho Min-jung = Although the domestic pet food market has grown to 2.5 trillion won, it has been revealed that the government is not even able to understand the proportion of imported products in the domestic market.

According to data submitted by the Ministry of Agriculture, Food and Rural Affairs on the 4th by People Power Party lawmaker Kim Seon-kyo, a member of the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, the domestic pet food market is estimated to have increased by 67.4% in five years from $1.0648 billion in 2020 to $1.783 billion last year. Last year's market size was equivalent to approximately 2.5 trillion won in Hanwha.

Despite the rapidly increasing scale, it appears that the government is not even securing basic statistics.

In data submitted to the National Assembly's Office, the Ministry of Agriculture, Food and Rural Affairs wrote 'no relevant data' regarding the share of imported products in the domestic pet food market.

Regarding this, Rep. Kim pointed out, “We do not even have basic statistics to judge industrial competitiveness, such as the market share of domestic and imported products.”

The Ministry of Agriculture, Food and Rural Affairs explained, "The share of imported feed can be calculated arithmetically based on the size of the domestic pet food market and the size of the import amount," but added, "Because the domestic market size is not an official statistic announced by the government, there are limits to the accuracy of considering the figure (calculated arithmetic) as the share of imported feed."

At the same time, the 'Pet Animal-related Industry Act' was enacted in March of this year, and based on this law, we are working to establish a statistical basis to understand the overall status of the pet-related industry, including feed and supplies. In the future, we will prepare statistics through a fact-finding survey based on a classification system based on the results of related research services.

Last year, pet food imports amounted to $342.5 million, 2.1 times the export amount of $160.5 million, resulting in a trade deficit of $182 million. The pet food trade balance has recorded a deficit for 11 consecutive years since 2015.

Meanwhile, the government's export support budget has increased significantly.

The budget for the overseas export industrialization project for companion animal-related industries has expanded 4.9 times in two years from 1.84 billion won in 2024 to 9.095 billion won this year.

However, pet food exports only increased by 7.1% from $149.8 million in 2023 to $160.5 million last year, and are virtually unchanged compared to 2024 ($160.1 million).

Rep. Kim said, “In line with the rapidly growing pet market, we need to properly analyze basic statistics and industrial competitiveness and prepare a comprehensive development strategy that includes the use of domestic raw materials, research and development, product advancement, and expansion of overseas sales channels.”