Sydney, Sept 1 - CBH Group, one of Australia's top grain exporters, expects to sell about 315,000 tonnes of wheat to South Korea in calendar 2009, the firm's first year as a direct supplier to the north Asian market, the firm said on Tuesday.
The firm's GrainPool unit said sales were likely to rise to 450,000 tonnes next year as it sold more noodle wheat and South Koreans ate more Western style meals based on flour, such as hamburgers, at the expense of the country's food staple, rice.
CBH's entry into the Korean market follows last year's liberalisation of Australia's wheat export sector that previously only permitted AWB Ltd , the former Australian Wheat Board, to export bulk wheat.
GrainPool's wheat marketing manager Tom Puddy told Reuters CBH had joined AWB in supplying specially blended Australian Standard White (ASW) wheat grown in Western Australia to Korean noodle makers. Orders in the quality conscious market are won through an invitation-only tender system.
"Buyers have become more quality-savvy in their purchasing of raw materials to meet the fast growing demand for high-quality food products," said Puddy, who recently visited South Korea for talks with customers.
The firm estimates Australia's total wheat exports to South Korea in 2009, largely comprising sales by AWB and CBH, will rise about 21 percent from last year, to about 800,000 tonnes.
A Seoul-based Australian trade official said the country's wheat exports to South Korea totalled 444,000 in the first half of 2009, making it possible that one million tonnes could be exported this year.
CBH is targeting sales of 450,000 tonnes of quality specific blended Western Australian wheat to South Korea in 2010, and expects total Australian sales of 900,000 tonnes.