A tariff quota is designed to encourage the importation of goods that are not produced in sufficient number in the country. The government usually sets the quantity of imports that can take advantage of reduced duties. Imports above that set quantity are charged normal customs duties.

Reason for tariff quota
Seoul maintains a tariff quota duty rate of 2% on animal feed. The ministry said the move reflects soaring international feed prices that shot up to US$243 per ton in August from $184 in 2005. It also said a dip in the country's feed self sufficiency rate from 82.0% in 2003 to 82.1% last year, induced the curtailing of the special quota.

Increase amount of land
To make up for supply shortages, the government said it will increase the amount of land used to raise animal feed by 66% over eight years. This is expected to increase feed-producing land from 145,000 hectares as of last year to 240,000 hectares by 2015.

South Korea grows green barley, rye and oatmeal as animal feed. As of September, it had 2.6 million cows, 9.6 million pigs and 115 million chickens.

Source: Yonhap News