The government is pushing for a plan to convert seafood farms that were raising abalone, seaweed, and fish into seaweed farms. This is in response to the increasing global preference for Korean seaweed and rising seaweed prices, aiming to boost supply. In particular, farmers who cultivate abalone, which has been experiencing prolonged price declines, are showing great interest in the conversion to seaweed farms.
According to the Ministry of Oceans and Fisheries on the 10th, the government plans to allow the conversion of existing seafood farms into seaweed farms starting from July this year.
The seaweed farming industry had been restricted from new development for some time. Converting from other aquaculture to seaweed farming was also not permitted. The Ministry of Oceans and Fisheries has revised the basic guidelines for the use of licensed aquaculture to allow this and plans to increase the supply of seaweed.
Recently, seaweed has established itself as Korea's 'star seafood.' Riding the Korean Wave, it has become familiar as a health food among foreigners, recognized as a snack that can be easily consumed at any time. In particular, last year, the frozen seaweed roll craze centered around the U.S. supermarket Trader Joe's boosted its popularity significantly once again.
Currently, Korean seaweed holds the top global market share (70%). It is also the top export item among domestic seafood products. Seaweed export volume has steadily increased from 15,908 tons in 2013 to 22,099 tons in 2018 and 35,446 tons in 2023. During the same period, export value tripled from $251.7 million to $525.5 million and $792.5 million. Last year also likely saw a record high in export value.
While the demand for seaweed is rising, the domestic production of Korean seaweed (raw seaweed) remains at 500,000 to 600,000 tons, resulting in a continuing shortage in the domestic market. The price of seaweed (based on 10,000 sheets) rose from 4,772 won in 2022 to 5,877 won in 2023, surpassing 10,000 won in April last year and reaching 12,000 won in December. This has significantly increased the cost burden for processing companies producing seasoned seaweed.
Given this situation, abalone farmers in the Jeollanam-do region have been requesting the government to allow the conversion to seaweed farming. They intend to increase revenue by transitioning to seaweed farming instead of continuing to produce abalone, which is facing sluggish demand.
Despite a decrease in shipment volume, abalone prices in producing areas are simultaneously falling. According to the Korea Maritime and Fisheries Development Institute, the cumulative shipment volume of abalone last year decreased by 2.6% compared to the previous year, while the price in producing areas dropped by 6.7%.
According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the national average retail price for medium-sized abalone (five pieces) was 12,980 won as of the 6th, a 24% decrease compared to two years ago. A representative from a large supermarket noted, 'Abalone consumption has declined due to decreasing sales in the food service industry and economic recession,' adding, 'The demand for gifts during this year's Lunar New Year holiday also appears to be less than in previous years.'
Abalone farmers are hopeful that if abalone farms are converted to seaweed farms, the additional decrease in abalone supply will help prevent further price declines.
Meanwhile, the government has been putting its utmost efforts since last year to increase seaweed supply and exports. Last year, it aimed to produce an additional 20 million sheets of seaweed by increasing aquaculture farms to a total of 5,070 hectares (ha) and stabilizing supply by 2027. To this end, it permitted the development of new aquaculture farms covering 2,700 ha last July. This development is equivalent to the size of 3,800 soccer fields and marks the first new development in eight years since 2016. Alongside this, the government is attempting to develop technology for onshore seaweed farming as well as to initiate seaweed farming in deeper waters for the first time.
A representative from the Ministry of Oceans and Fisheries mentioned, 'We plan to continue increasing exports through the premium productization based on seaweed quality grading and expanding the English name for seaweed (GIM).'