1. GRAIN & OILSEED ISSUES

Rice Industry in Critical Situation: Polarization of Farmhouses Gets Worse [Korean, LSH]
http://news.kukinews.com/article/view.asp?page=1&gCode=kmi&arcid=0007723101&cp=nv

Summary: In preparing for the liberalization of rice market, the government has been promoting farm scale-up projects by encouraging mechanized agriculture and large scale farms.  However, commercialization-centered agriculture ended up aggravating the polarization between small farm households and commercialized producers.  According to National Statistical Office (NSO), the overall farm income has decreased by far since 2003 and only 28 percent of all farms are cultivated by small farmers which consists two thirds of the farmer population. In order to alleviate this increasing disparity, the government plans to support sustainable agriculture caring for both small and aged farmers.    

Illegal Distribution of Imported Rice Unsettles Rice Market[Korea, CSC]

http://www.nongmin.com/article/ar_detail.htm?ar_id=224887&subMenu=articletotal

Domestic rice market is suffering from illegal distribution of imported rice disguised as domestically produced rice. According to MAFRA, the number of false labeling cases of imported rice detected scored the highest this year after 2006. The reason behind this is mainly because the volume of imported rice increased rapidly and the government allowed large proportion of imported rice to enter the domestic market for distribution. Since the price of domestic rice still outweighs that of imported rice by far, the illegal distribution issue is estimated to linger.

Korean Grain Company’s Farm in Far-Eastern Russia to Ship 15,000 MT of Corn to Korea [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013111110631

Summary: Seoul Feed Co. reported that its joint-investment farm in far-eastern Russia will ship 15,000 metric tons of corn harvested this season to Korea.  Seoul Feed added that the volume of shipment this season is much larger than last season’s 3,100 metric tons.  Seoul Feed has reportedly acquired 15,000 hectare of farm land in far-eastern Russia that grows various grains such as corn and wheat.  Korea’s self-sufficiency rate for grains is very low and development of farms by Korean companies in foreign countries should help Korea maintain secure food supply.  

2. LIVESTOCK ISSUES

Livestock Industry Suffers Even though Price of Tenderloin and Single Ribbed Belly Rise [Korean, LSH]

http://www.hankyung.com/news/app/newsview.php?aid=2013110543491

Summary: The price of beef and pork is in sharp rise and scored 8.3 percent higher than the price of last year.  The more serious problem of the price is that the gap between the parts became wider depending on its popularity.  Tenderloin is three times more expensive than the other minor parts because of changing preference.  Same phenomenon occurs to pork as well, pork belly is sold with price that is 3~4 times higher than the average price distributed.  This led to more burden on livestock farmhouses because of unbalance in sales price, increasing amount of imported beef that can be substituted for domestic products and increasing feed cost.  

Duck Becomes a Major Consumption in Competition with Chicken[Korea, CSC] http://www.hankyung.com/news/app/newsview.php?aid=201311106794g

Convenience Store Chains Report Increased Per Store Sales while the Number of New Store Openings Reduced under the Government Restriction [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013110543521

Summary: BGF Retail reported that the total number of its ‘CU’ convenience stores was 7,886 as of September 30 this year, down 52 from one year earlier.  BGF Retail added that 2013 was the first year that the number of ‘CU’ stores decreased.  BGF had been adding over 1,000 new CU stores each year over the years.  Industry analysts explained that the new regulation by the Korean government that prohibits opening of new convenience stores within 250 meter radius from the existing same brand store was the key reason for the decline of the total number of CU stores this year.  Seven Eleven, another leading convenience store chain in Korea also reported that the total number of its Seven Eleven stores reduced down to 7,230 so far this year.  However, both BGF Retail and Seven Eleven reported that their per store sales increased by 18.8 percent and 10 percent respectively this year.

Test Market Shop in Seoul by ‘Cheesecake Factory’ Reports Over 10 Million Won of Daily Sales [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013110678861

Summary: Cheesecake Factory, an American bakery restaurant chain opened a test market shop on November 1 in Galleria Department Store Seoul.  Since the launching, the test shop has made over 10 million won (about $94,000) of daily sales.  Local consumers who are aware of the brand name through travel to the U.S. were reportedly the leading buyers of the store.  Solomon F&B, local business partner of the chain, is currently in a discussion with Cheesecake Factory USA to decide the opening of the first regular Cheesecake Factory restaurant in Korea.

Traceability System to be Mandated on Health Functional Foods from December 2014 [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013110678911

Summary: Korea Ministry of Food & Drugs Safety (MFDS) announced that all health & functional foods sold in the market will be mandated to provide traceability system that allows tracking of distribution history back to the manufacturer level.  Products of over 5 billion won of annual sales will be subject to the rule from December 2014.  All products will be subject to the rule from December 2017.

Korean Consumers’ Direct Purchases from Foreign On-Line Shops on a Strong Growth … Likely to Reach 2 Trillion Won This Year [Korean, OSY]

http://news.donga.com/3/all/20131107/58757534/1

Summary: It is reported that Korean consumers’ direct purchases from foreign on-line retailers are on a strong growth.  According to the Korean credit card companies, local consumers’ credit card spending to foreign suppliers (and service providers such as air tickets and hotels) amounted to over 1.3 trillion won (about $1 billion) in the first half this year.  Over one third of the spending was for purchases from on-line retailers.  According to the Korea Customs Service, over 70 percent of the on-line purchases were from American on-line shops.  KORUS FTA has increased the duty free ceiling on products imported by individual consumers to $200 inclusive of shipping.  More Korean consumers are likely to visit foreign on-line shops for lower price.   

Foreign Alcohol Beverage Suppliers Switch to Large-scale Korean Importers for Better Marketing Capacity [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013111108591

Summary: It is reported that some of the prominent alcohol beverage producers exporting to Korea have recently switched their Korean import partners from existing smaller-scale importers to larger-scale importers.  For example, E Guigal, a leading French Rhone wine producer, and Los Bascos, a leading Chilean wine producer have changed their Korean import partners to Shinsegae L&B, a large-scale importer under the umbrella of Shinsegae Group.  Jagermeister, a leading German liqueur producer has recently changed its Korean partner to Lotte Liquor, another large-scale importer under the umbrella of Lotte Group.  Industry analysts say that more of the leading foreign alcohol beverage suppliers are likely to seek partnerships with larger-scale importers in Korea as they think their business has outgrown their existing import partners.