​​FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date: Friday, December 30, 2016

For Coverage: December 13~20, 2016

14% of Chicken and 25% of Ducks in Korea Have beenDepopulated Due to Avian Influenza Outbreaks as of December 27 [Korean, OSY]

http://news.donga.com/3/all/20161228/82065220/1

Summary:According to the Korean government, a total of 27 million chicken and duckshave been depopulated as of December 27 due to avian influenza (AI) outbreakssince November 16.  The number of depopulated birds accounted for a 14 percentof all chicken and a 25 percent of all ducks in the country.  Althoughreports of new outbreaks have been on a decline, some experts have warned thatthe outbreaks could expand again anytime as the AI viruses tend to activateunder cold weather.

 

Short Supply of Eggs Under Avian Influenza OutbreaksMay Last for More than 6 Months [Korean, OSY]

http://news.donga.com/3/all/20161228/82065222/1

Summary:The price of eggs in the market is on a rapid increase as the supply furtherdeclines due to outbreaks of avian influenza (AI).  According to theMinistry of Agriculture, Food and Rural Affairs (MAFRA), the number of egglaying hens depopulated under the on-going outbreaks of AI in Korea totaled19.6 million as of December 27, which accounted for a 28 percent of allegg-laying hens in the country.  Furthermore, 410,000 or a 48 percent ofall breeding hens that produce egg-laying hens in the country have also beendepopulated.  As a result, marketers forecast that it would take more than6 months for the Korean egg farm industry to rebuild its supply capacity backto pre-AI level.  According to the Korea Agro-Fishery Corporation, theprice of a 30 fresh egg pack marked 7,940 won in local retail stores on averageas of December 27, which was 43 percent higher than a year before.  Toincrease the egg supply, MAFRA announced on December 27 that it would allow theegg farms in AI areas (which is within 3 kilometer radius from the spot whereAI outbreak was confirmed) to ship eggs once a week if the farms clear thegovernment quarantine inspections.  In addition, MAFRA has decided toremove the import tariffs on imported eggs from January 2017 to supportadditional supply of eggs to the market.  MAFRA even reportedly considersimportation of eggs on its own if the local supply comes to a situation thatrequires government's direct intervention.

 

Products Under 50,000 Won Account for a Majority ofGift Sets Offered in Retail Stores for the Coming Lunar New Year's Day SeasonDue to Anti-Graft Act [Korean, OSY]

http://news.donga.com/3/all/20161227/82047132/1

Summary:According to leading retail stores, a majority of gift sets offered in localhypermarkets and department stores for the coming Lunar New Year's Day season(January 27-30, 2017) are products under 50,000 won each to satisfy the ceilingprice for gifting designated by the anti-graft act (a.k.a. Kim-Young-Lan act),which is 50,000 won.  In the previous year when there was no such act,premium food products such as local Hanwoo beef and dried yellow Corvina fishwere popular gift items for the Lunar New Year's Day season.  However, theconsumers are opting for less expensive food products such as pork meat thisyear due to the anti-graft act.

 

'Lotte Premium Food Market' Opens 2nd Store in Seoul[Korean, OSY]

http://www.newsis.com/ar_detail/view.html?ar_id=NISX20161225_0014602409&cID=10408&pID=10400

Summary:Lotte Super, a grocery supermarket business under Lotte Group, announced that its2nd 'Lotte Premium Food Market' store was scheduled to open on December 28 inSeoul.  The first store, also located in Gangnam district, Seoul startedoperation in June earlier this year.  Lotte pointed out that the storewould offer premium food products such as imported Russian crabs and premiumwine.

 

BDM, Leading Restaurant Food Home Delivery AppServices 10 Million Orders A Month [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2016122648171

Summary:BDM, the leading smart phone application that connects consumers andrestaurants for home delivery orders reported that the number of orders that itserviced had gone over 10 million per month this year, which was about 100percent increase from last year.  About 3.3 million consumers arecurrently logging on the BDM application each month.  Over 180,000restaurants registered with BDM are forecast to generate 2 trillion won ($1.7billion) of home delivery sales through BDM application this year.  BDMoperates its own delivery crews on motorcycles who pick up the orders at therestaurant and make the delivery to the customer.

 

Sales of Home Meal Replacement Products in GroceryStores to Reach 2.3 Trillion Won This Year, Up 35 Percent from Last Year[Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2016122645661

Summary:Industry sources indicates that the cash register sales of home mealreplacement (HMR) products in grocery stores would mark 2.3 trillion won ($1.9billion) this year, up 35 percent from last year.  As a result, leadingfood manufacturers are making extra efforts to offer more varieties and higherquality.

 

Korea's Ag-Food Exports Up 6.3% This Year [Korean,OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2016122269171

Summary:The Ministry of Agriculture, Food and Rural Affairs (MAFRA) reported thatKorea's exports of agricultural and food products amounted to $5.91 billion in2016 through November, up 6.3 percent from the same period in 2015. Processed food products were the main body of the exports by amounting to $4.95billion.  Fresh agricultural products accounted for $227 million of theexports while tobacco products accounted for the rest $956 million. 

 

Dairy Queen to Enter the Korean Market ... Plans toOpen 50 Stores in Korea within 5 Years [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2016122268911

Summary:Dairy Queen, an American fast food restaurant franchise based in Minnesota hasreportedly signed a business license contract with a Korean partner, M2G,recently.  M2G has been operating Taco Bell business in Korea since2010.  M2G plans to open 50 'Dairy Queen Grill & Chill' stores inKorea within the next 5 years.

 

Take Out Lunch Boxes Offered in Convenience StoresContain High Amount of Sodium [Korean, OSY]

http://news.donga.com/3/all/20161222/81980483/1

Summary:The Seoul City Government reported that its recent survey (together with a NGO consumerorganization) revealed that take out lunch boxes offered in convenience storesin general contained a high amount of sodium.  The 20 products examined inthe survey had an average of 1,366 mg of sodium, which was 68 percent of thedaily intake ceiling recommended by the World Health Organization (WHO). Some of the products contained more sodium above the daily intakeceiling.  The City Government pointed out that take out lunch boxes couldbe a potential health risk to consumers as sales were on a strong growth. The City Government also pointed out that no nutrition labeling wasrequired by law on the label of the take out lunch boxes sold in retailstores.  As a result, consumers were not aware that the products containeda high amount of sodium.

 

Cacao Nips Join the "Super-Grain" Fever[Korean, OSY]

http://news.donga.com/3/all/20161222/81980395/1

Summary:Cacao nips, a powder of roasted cacao beans is reporting solid sales growth as itsfunction of improving vascular health is known to more consumers inKorea.  Lotte Home Shopping reported that its sales of cacao nips amountedto 15 billion won so far this year.  The sales of super-grain category,including quinoa, lentil pea, chia seed, Kamut, and oat, are likely to maintaina solid growth in the coming year as more Koreans are replacing rice with thesehealthy grains.

 

Damage of Avian Influenza Continues to ExpandDespite Government Efforts ... Price of Eggs Up 27 Percent Since Last Year[Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2016122140461

Summary:The number of chickens and ducks depopulated due to the avian influenzaoutbreak totaled 20.9 million as of December 21, according to the Ministry ofAgriculture, Food and Rural Affairs (MAFRA).  Among them, 16.4 millionwere chickens, which accounted for a 10.6 percent of the total chickenpopulation in Korea.  In particular, egg farms took major damage as 20.8percent (or 14.5 million birds) of egg-laying hens in the market weredepopulated.  As a result, the price of fresh eggs has increased 27percent since the first outbreak of avian influenza in late October (from 5,608won per a 30 egg pack on October 28 to 6,866 won on December 21).  Retailstores and bakery shops are currently having a problem securing enough suppliesof fresh eggs.  Major retail store chains, including E Mart, have startedto restrict the sales of fresh eggs to one 30 egg pack per shopper.  Someof the bakery shops are forced to limit daily production due to the reducedsupply of eggs.

 

American Lobster Sales Promotion in Home Plus Stores... 17,450 Won per One Lobster [Korean, OSY]

http://news.donga.com/3/all/20161211/81787004/1

Summary:Home Plus, the second largest hypermarket grocery store chain in Korea launcheda special sales promotion on American lobster on December 11.  Thepromotion is scheduled to last until December 21.  During the promotion,one lobster is going being offered at 17,450 won (about $15).

 

Price of Fresh Eggs Up 5 Percent due to AvianInfluenza [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2016121292201

Summary:Major retail store chains in Korea increased the retail price of fresh eggs byabout 5 percent from December 8 as the supply of eggs from local farms declinedsignificantly under the on-going spread of avian influenza outbreaks.

 

Korean Government Orders 48 Hours Sanction onPoultry Industry to Stop Further Spread of Avian Influenza ... Over 10 MillionBirds have been Depopulated [Korean, OSY]

http://www.ytn.co.kr/_ln/0102_201611260008164754

Summary:Korean government announced that it had prohibited transportation and movementof birds and workers in the local poultry industry for 48 hours from midnightDecember 13 in an effort to stop further spread of avian influenza (AI) in thecountry.  The outbreak of AI in Korea has so far resulted in thedepopulation of over 10 million chicken and ducks since November 16.