In response to escalating tensions in the Middle East, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) has initiated urgent checks across various export markets, grain flows, and logistics.

Officials from MAFRA have assessed that immediate risks remain manageable. This is largely due to Korea’s modest exposure to the region, coupled with existing supply contracts and sufficient inventories.

In 2025, exports of agri-food products to the Middle East accounted for approximately U$430 million, representing only 3.2% of total agri-food shipments. As such, any immediate disruptions are likely to have a minimal effect.

Nevertheless, MAFRA anticipates turbulence in logistics, particularly concerning the Strait of Hormuz and certain suspended air routes. The ministry has encouraged companies to prepare for potential adjustments in shipping schedules and increased freight costs.

MAFRA is actively gathering feedback from exporters through overseas offices and direct outreach while reviewing possible support measures for affected companies.

Impact on Smart Farm Systems and Agricultural Machinery

The export of smart farming systems and agricultural machinery is expected to remain largely unaffected, as only a small proportion of shipments rely on routes passing through the Strait of Hormuz.

Companies operating in the UAE and Saudi Arabia, such as food and beverage giant Nongshim, have reported no damage to infrastructure or personnel as of now, including ongoing greenhouse development initiatives in Saudi Arabia.

Grain Imports and Agricultural Inputs

Regarding grain imports, MAFRA has noted that wheat, corn, and soybeans sourced from Eastern Europe continue to transit via the Suez Canal, effectively minimizing risk exposure. With enough volumes secured for the first half of the year, immediate supply concerns are not anticipated.

Processed food manufacturers are also expected to face limited disruption, as most raw materials are shipped through the Suez Canal. However, MAFRA forewarned of indirect pressures such as rising oil prices and currency volatility, committing to closely monitor these trends in collaboration with industry stakeholders.

For agricultural inputs, including fertilizer and feed, existing contracts and stockpiles also provide significant short-term protection. However, the ministry flagged urea as a potential risk, noting that some shipments pass through the Strait of Hormuz.

To address potential disruptions, MAFRA is collaborating with the National Agricultural Cooperative Federation and suppliers to develop contingency plans, which may include diversifying sourcing strategies.

Monitoring Developments

Despite the limited impact thus far, MAFRA has heightened its monitoring efforts by activating the Middle East Situation Monitoring and Industry Feedback Channel. This initiative, launched on March 9, aims to facilitate daily checks on exchange rates, energy prices, and maritime logistics, while also addressing industry concerns in real time.

Agricultural attachés in Middle Eastern countries, including the UAE, will remain vigilant and in close communication with Seoul. “We cannot rule out the possibility of a prolonged situation in the Middle East. Continuous monitoring is essential, and we will enhance our feedback channels to promptly address industry challenges,” remarked Park Soon-yeon, Director General of Planning and Coordination at MAFRA.