The Ministry of Agriculture, Food and Rural Affairs is strengthening support for food companies to respond to rising raw material prices and supply instability stemming from the war in the Middle East.

The ministry said on April 8 that naphtha prices have surged, raising manufacturing costs for food companies. Naphtha is a key feedstock for synthetic resins used in snack and instant noodle packaging and beverage containers. Concerns are also growing about possible disruptions to packaging supplies.

The ministry and the Korea Food Industry Cluster Agency decided to support food companies in switching packaging by providing information on eco-friendly alternatives such as paper, metal and glass, along with related company information. They will also support packaging tests and analysis, safety verification and assessments of applicability using the agency's equipment and facilities.

They also plan to introduce a joint collection and delivery system to reduce logistics cost burdens for companies based in the National Food Cluster. The plan is to move away from separate contracts by each company, combine shipment volumes to sign joint contracts, and use the raw material relay supply center within the industrial complex as a logistics hub.

The ministry expects the measures to cut logistics costs by more than 20 percent for each company and improve logistics efficiency.

Kim Jung-wook (김정욱), head of the Agro-Industry Innovation Policy Bureau at the ministry, said, "Food companies are facing a growing burden due to greater volatility in crude oil and naphtha prices." He added, "We will enhance industrial competitiveness by shifting to eco-friendly packaging and building a joint logistics system."