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Food News Clipping

February 07, 2011

2011.02.07

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues
Today's Date:  Monday February 07, 2011
For Coverage: February 01 - 07, 2011
 

1. ECONOMIC ISSUES

 

Food prices were second highest in OECD group (English, CSY)

http://joongangdaily.joins.com/article/view.asp?aid=2931833

Summary: Korea had the second highest rise in food prices among the Organization for Economic Cooperation and Development (OECD) members in December.  Food prices in Korea jumped 10.6 percent in December from a year earlier, higher than the OECD average of 2.6 percent, according to the data from the OECD.

Among the 33 surveyed countries, Estonia topped the list at 12.2 percent. It was followed by Korea and then Hungary and Turkey with 7.6 percent and 7 percent, respectively.  The overall consumer inflation rate in December came to 3.5 percent in Korea, Asia¡¯s fourth-largest economy, higher than the OECD average of 2.1 percent. Seoul has been stepping up efforts to fight mounting inflationary pressure.

 

Inflation surges last month on food prices (English, CSY)

http://joongangdaily.joins.com/article/view.asp?aid=2931788

Summary: Consumer prices rose by 4.1 percent last month due to a shortage of agricultural goods caused by the recent cold spell, the foot-and-mouth disease (FMD) epidemic and the rise in international oil prices, Statistics Korea said yesterday.  The last time that the consumer price index increased 4.1 percent was in October, which was caused by soaring prices for fresh produce, especially Napa cabbage. The CPI in December was 3.5 percent.  The fresh produce price index rose 2.6 percent from a month ago and 30.2 percent from a year ago. The lack of pork caused by a massive culling of pigs in the country due to FMD led to a 15.1 percent rise in pork prices. 

 

Unusually cold weather and heavy snow have further contributed to increases in the price of cabbage, cucumber and green onion by 22.2 percent, 27.4 percent and 15.7 percent, respectively.  With the rise in pork prices, the price of substitute meats such as chicken and beef also increased. The price of chicken climbed 8.3 percent, while the price for imported beef increased 5.8 percent. The rise in crude oil prices led to a price increase at the pump for car owners.

 

 

2. LIVESTOCK ISSUES

 

FMD found at nation¡¯s largest breeding farm (English, CSY)

http://joongangdaily.joins.com/article/view.asp?aid=2931848

Summary: Thirteen pigs were confirmed Saturday to have foot-and-mouth disease (FMD) at Korea¡¯s largest breeding farm - the Department of Animal Resources Development in Cheonan, South Chungcheong - which provides sperm from high-quality livestock to farms nationwide, the Ministry for Food, Agriculture, Forestry and Fisheries said yesterday.   There are currently 350 cows, 1,650 pigs and 13,430 poultry (chicken and ducks) at the facility, the ministry said.  The ministry said yesterday that the National Veterinary Research and Quarantine Service conducted an inspection Saturday on 13 pigs that at showed signs of FMD at the breeding farm. All 13 tested positive.  The South Chungcheong Provincial Office shut down the facility immediately after being told of the outbreak on Saturday and culled the pigs that day. The department said it vaccinated all of its animals in January.

 

U.S. beef imports climb on local FMD outbreak (English, CSY)

http://joongangdaily.joins.com/article/view.asp?aid=2931837

Summary: Imports of U.S. beef rose sharply last year as Korea continues a three-month-long battle to contain foot-and-mouth disease (FMD), according to the U.S. Meat Export Federation.  Korea imported 84,822 tons of U.S. beef in 2010, up 42.6 percent from a year earlier. The figure was higher than the overall increase in beef imports, indicating the revived popularity of the American beef, which lost ground in 2008 amid public opposition against U.S. beef imports because of FMD fears. Overall beef imports rose 16.2 percent last year from 2009, according to the group.

 

U.S. beef accounted for 32.5 percent of Korea¡¯s imported beef market last year, up 6 percentage points from 2009, it said. American beef also narrowed its gap with Australian beef, which claimed 53 percent of the market.   As for pork, U.S. imports were the most popular. Korea purchased 75,362 tons of U.S. pork in 2010, accounting for 26.1 percent of the nation¡¯s imported pork consumption. Canadian pork was the runner-up with an 18.9 percent share.

 

S. Korea culls more than 3 mln livestock to control FMD (English, CSY)

http://english.yonhapnews.co.kr/business/2011/02/02/12/

Summary: South Korea's quarantine authorities said Wednesday that they ordered the culling of more than 3 million animals to control the spread of foot-and-mouth disease (FMD).    The farm ministry said 142 cases of the highly contagious disease have been reported nationwide so far, including an outbreak in Hongseong, 150 kilometers south of Seoul, late Tuesday, after the first outbreak was confirmed on Nov. 29.  It said that while nationwide vaccinations were ordered for all 13 million heads of cattle and pigs in the country, with inoculations administered from Dec. 25 onward, the outbreak is estimated to have caused damage exceeding a minimum 1.5 trillion won (US$1.34 billion), although the number could easily exceed the 2 trillion won mark.   The government has destroyed a total of 148,000 heads of cattle, 2.87 million pigs and over 7,000 goats and deer as the disease has spread across six provinces and two large cities.

 

3. NORTH KOREA ISSUES

 

Rice aid in NK`s black markets (English, CSY)

http://english.donga.com/srv/service.php3?biid=2011020738898

Summary: The liberal Kim Dae-jung and Roh Moo-hyun administrations of South Korea provided North Korea with 400,000 to 500,000 tons of food aid per year to help ease food shortages. The North consumes an estimated 5.3 million tons of grain per year but produces just 4.2 million tons, incurring a deficit of 1 million tons every year. Food that Seoul provided to Pyongyang accounted for half of the deficit and hence was expected to significantly ease the hunger of North Koreans. No signs appeared, however, that the North Korean people benefited from South Korean food aid, a situation that posed a puzzle.

 

John Everard, who served as British ambassador to Pyongyang for two and half years from February 2006, has presented a clue to this puzzle. He told a seminar hosted by Korea Economic Institute of America in Washington that rice in sacks with labels marked "Republic of (South) Korea" or "World Food Program" was traded openly at black markets in North Korea. Food that South Korea and international aid organizations gave to the North are traded in black markets after being embezzled by those in power, including the Kim Jong Il family and power elites of the ruling Workers¡¯ Party and military, rather than being distributed to North Koreans. This means the North`s power elite has been reaping double profits by taking advantage of the hunger of its impoverished people.

 

4. OTHER MISCELLANEOUS ISSUES

 

Gov't considers delaying back-to-school day to curb animal diseases (English, CSY)

http://english.yonhapnews.co.kr/business/2011/02/06/3/05010

Summary: South Korea is considering an extension of winter break for most schools to reduce the continuing spread of animal diseases that have already led to the culling of millions of livestock, the government said Sunday.   The Ministry of Education, Science and Technology said it has issued a special dispatch to all regional education offices to consider delaying the reopening of schools, especially in areas where the animal diseases are most rampant.
 

The information in this report was compiled by the Agricultural Trade Office (ATO) at the U.S. Embassy in Seoul, South Korea. The press summaries contained herein do NOT reflect USDA, the U.S. Embassy, or other U.S. government agency official policy or view point. U.S. food exporters can learn more about market opportunities in South Korea by reviewing ATO Seoul¡¯s Exporter Guide and other reports available at www.fas.usda.gov by clicking on ¡°attaché reports¡±.

 
 
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Agricultural Trade Office, U.S. Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921
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