Market Information   >   Food News Clipping

Food News Clipping

February 11, 2011

2011.02.11

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues
Today's Date:  Friday February 11, 2011
For Coverage:  February 09 - 11, 2011
 
 
1. BILATERAL/MULTILATERAL ISSUES

 

Gov¡¯t – Ruling Party Agree to Bring Korea-EU FTA Bill to the National Assembly in February [Korea, OSY]

http://kr.news.yahoo.com/service/news/shellview.htm?articleid=

Summary: In a meeting held on February 9, the ruling party and the government agreed to bring the Korea-EU Free Trade Agreement Bill to the national assembly in February.  The meeting came to a consensus that Korea should cope with the progress of the Korea-EU FTA bill in the EU assembly.  EU assembly is scheduled to initiate voting process on the FTA bill on February 17.  Assembly representative Moosung Kim commented additionally in the meeting that the ruling party will not make a hasty decision on the Korea-U.S. FTA bill, which faces strong opposition from the opposition party.

 

Korea-U.S. Free Trade Agreement Faces More Hurdles [English, CSY]

http://english.chosun.com/site/data/html_dir/2011/02/09/2011020900794.html

Summary: The FTA still needs to be ratified by lawmakers in both countries, but the prospects that the National Assembly will approve them are slim. The government and ruling Grand National Party are saying that very few additions have been made and the original text of the FTA has not been touched, making it possible to ratify the supplementary agreements along with the existing FTA that has already been passed by the National Assembly's Foreign Affairs and Trade committee.   But the opposition Democratic Party and Democratic Labor Party say the original FTA has been changed by the supplementary agreements, making it necessary to review the FTA from scratch. The reason the opposition wants to take the complicated route is because it believes Korea's national interests has been sold out in the additional negotiations.

 

Seoul to prioritize ratification of South Korea-EU FTA [English, CSY]

http://english.yonhapnews.co.kr/national/2011/02/09/61/03010

Summary: The South Korean government and the ruling party on Wednesday decided to prioritize the nation's free trade agreement (FTA) with the European Union (EU) over a free trade deal with the United States in getting local parliamentary ratification, party officials said.  Seoul and Brussels signed the FTA on Oct. 6, and provisionally agreed to put the pact into effect starting on July 1.  The decision to take a two-track approach to the two agreements was made as the European Parliament is expected to ratify the pact during its main session slated for next week, Nam Kyung-pil, a lawmaker of the Grand National Party (GNP), told reporters. The accord passed a standing committee of the European legislature on Monday.

 

Korea, U.S. ink auxiliary free trade agreement [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2932058

Summary: Korea and the U.S. have signed their recently concluded free trade agreement, paving the way for the pending pact to be ratified in both countries, Seoul¡¯s Trade Ministry said yesterday. The Ministry of Foreign Affair and Trade announced that Trade Minister Kim Jong-hoon and U.S. Trade Representative Ron Kirk signed and exchanged the supplementary agreement, which will act as a stand-alone deal from the original pact.

 

Obama to Push for Ratification of Korea-U.S. FTA [English, CSY]

http://english.chosun.com/site/data/html_dir/2011/02/11/2011021100331.html

Full text: U.S. President Barack Obama will submit the Korea-U.S. free trade agreement bill to Congress late this month or early next month in the hope that Congress will approve it this spring, U.S. Trade Representative Ron Kirk said Wednesday.  Kirk made the announcement in a hearing of the House Ways and Means Committee. He said Obama is looking forward to keeping his promise to achieve billions of dollars in increased exports and create tens of thousands of jobs.  Kirk pledged to make sure that there is also progress in FTAs with Colombia and Panama.  Some Republican lawmakers are calling for ratifying the three different FTAs at the same time, but Kirk made it clear the White House wants the deal with Korea to be settled first.

 

Korean PM: KORUS FTA Not Optional, But Vital to Economy [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=112499&code=Ne4&category=3

Full text: Korea's Prime Minister Kim Hwang-sik said that the Korea-US FTA is not an option and that it's vital to improving the domestic economy.  During a speech at a forum hosted by the Korea Human Development Institute on Thursday Kim said he regrets that the trade pact is at the center of controversy in the National Assembly.  He added that previous trade deals with other countries have clearly been beneficial to Korea and to the global economy.  Therefore, Kim emphasized that the government will do everything it can to complete the ratification process within this year with the support of the nation.

 

2. GRAIN & OILSEED ISSUES

 

Worries Arise over Possible Global-wide Grain Crisis ¡¦ Korean Gov¡¯t and Industry Are Not Prepared [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011

Summary: While price of grains are continuing a rapid increase due to reduced supply and inflation pressure, it is pointed that Korean government and industry are not prepared to cope with the possible crisis.  According to a news report, Korean government maintains no bumper grain stock currently other than rice.  Industry has also been very passive in developing stable supply of grains internationally.  For example, there is only one Korean company (Hyundai Heavy Industry Co.) that is currently operating farm in foreign country (Russia).  In addition, there is only one Korean company (STX) that is currently participating in the international grain supply market.  In comparison, Japan has long been investing into global grain supply business and currently maintains its own supply channel for most of its grain needs.  As a result, Japan is not relying on international grain majors for grain imports, and maintains a more stable supply of needed grains.

 

3. LIVESTOCK ISSUES

 

Spilled FMD milk leads to stench, supply gap [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2932019

Summary: Early fears about the effects of foot-and-mouth disease (FMD) have become reality as a milk shortage is hitting the dairy industry. And the shortage comes with irony: local diary farms are being forced to throw away several hundred tons of milk a day as dairy processors suspend production due to a shortage of raw milk.  As the worst outbreak of FMD sweeps the country, dairy farms are the first to struggle. According to the Korea Dairy Committee, some 30,121 dairy cows were culled before the Lunar New Year holidays.   But dairy farms within a 500 meter (1,640 feet) radius of an FMD outbreak are also obligated to throw away all their milk, which could possibly be tainted. Because dairy cows get sick if not milked, farms cannot just stop production. So local farmers milk the cows and then throw it away to the tune of 200 tons a day in February, according to the Ministry for Food, Agriculture, Forestry and Fisheries. That¡¯s the equivalent of a million 200 milliliter cartons of milk.
 
 
 

Foot-and-mouth disease breaks out in N. Korea: RFA [English, CSY]

http://english.yonhapnews.co.kr/business/2011/02/10/91/05010

Full text: North Korea has reported an outbreak of the livestock foot-and-mouth (FMD) disease on its soil to the Food and Agriculture Organization of the United Nations, the Radio Free Asia said in a report on Thursday.    North Korea's agricultural ministry sent a letter to the U.N. organization on Wednesday, notifying it of the outbreak of the contagious animal disease and asking for emergency support, the media reported, citing a U.N. official.  The official did not mention the region of the outbreak nor the number of livestock that showed FMD symptoms, it added.  The organization will send experts to North Korea "at an appropriate time" to help the reclusive communist country contain the FMD disease, it said.    South Korea has been also battling with the FMD disease that has spread nationwide in the last three months and caused over 3 million livestock to be culled.

 

FMD, bird flu outbreaks inflict huge damage on S. Korea [English, CSY]

http://english.yonhapnews.co.kr/business/2011/02/09/05010

Summary: Recent nationwide outbreaks of foot-and-mouth disease (FMD) and bird flu are estimated to have cost South Korea 2 trillion won (US$1.8 billion), a government official said Wednesday.  Since the first FMD case was confirmed on Nov. 29, Seoul has culled and buried 3.22 million heads of cattle, pigs, goats and deer, with the number of birds destroyed to combat the avian influenza (AI) hitting 5.41 million since late last year.

 

Serious concern over pollution at culling sites [English, CSY]

Gov¡¯t orders inspections after report finds contaminated water leakage

http://joongangdaily.joins.com/article/view.asp?aid=2932069

Summary: Amid growing, serious concern over water and soil contamination at the burial sites of animals culled in the foot-and-mouth disease (FMD) outbreak, the government and the ruling party yesterday decided to conduct environmental surveys at all sites nationwide.  The Lee Myung-bak administration and the Grand National Party convened a meeting to discuss the serious environmental concerns. The Ministry of Environment and the Ministry of Public Administration and Security will be in charge of the nationwide surveys, said Representative Kim Young-woo.  A quick reaction department will be created under the military¡¯s chemical, biological and radiological warfare unit to step up the efforts to contain the problems related to the outbreak of FMD as well as avian influenza. The team will work with civilian and government disease control task forces.

 

4. MARKETING ISSUES

 

Asahi Beer Sold 1 Million Cases in Korea in 2010 [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/02/09/031800

Summary: Lotte Asahi, a leading importer of alcohol beverages, reported that the sales of Asahi beer that it imported from Japan exceeded 1 million cases (24 cans x 350 ml per case) in 2010.  The company added that imported beer from Japan should see a rapid sales increase in Korea in the coming year as more beer consumers, in particular young people, are looking for higher quality products.

 

GS Supermarket to Strengthen Internet Store [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/02/09/03180

Summary: GS Supermarket, a leading grocery supermarket chain, announced on February 10 that it has launched a new internet store site to strengthen the on-line business.  Its new internet supermarket (www.gsisuper.co.kr) offers twice more products than its old internet store, which covers over 90 percent of the products sold in its conventional stores.  The new store also features speedier home delivery service.  Orders placed before 6:00 p.m. will be delivered within 3 hours.  Same day delivery service is provided to the entire Seoul metropolitan area.  To encourage more consumers to use the internet store, the store offers much stronger compensations for any problem in the quality of product sold and failure to meet the delivery time.

 

CJ O Shopping to Enter Vietnam Market [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/02/09/0318000000AKR

Summary: CJ O Shopping, a leading TV home shopping company in Korea, announced on Feb. 9 that it has earned an approval from the Vietnamese government to start a TV home shopping business in Vietnam.  CJ earlier set up a joint venture company with the leading Vietnamese cable TV service provider to launch the TV home shopping business in Vietnam.  CJ is the first Korean company to enter the Vietnamese market.  President of CJ O Shopping commented that the company will seek additional opportunity to expand into other south Asian markets in the coming year.

 

Fair Trade Committee to Introduce ¡®Fair Trade Bill on Large-scale Retail Business¡¯ [Korean, OSY]

http://news.mk.co.kr/v3/view.php?sc=30000002&cm=

Summary: In a meeting between the Fair Trade Committee and the presidents of 9 leading retail companies held on February 9, committee chairperson Dongsoo Kim announced that the government plans to introduce a new bill that intends to regulate the way large-scale retailers transact with suppliers.  According to Mr. Kim, the bill are likely to include key ¡®fair trade measures¡¯ such as limiting of returning unsold products to the suppliers and 40 day payment due.  Presidents of retail companies expressed concerns at the meeting.  Mr. Kim also added that the committee will disclose the distribution mark up taken by large retailers every six months.

 

5. OTHER MISCELLANEOUS ISSUES

 

 ¡®Gim¡¯ Seaweed Production in Junra-nam-do Province likely to be Record Low This Year due to Cold Weather [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/02/08/0318000000AKR2011

Summary: Korea Maritime Institute Mokpo branch reported that due to the cold weather this winter, production of ¡®Gim¡¯ seaweed from Junra-nam-do province (the southwestern sea of Korean peninsula) is likely to down by 90 percent from last year.  According to the institute, average sea temperature during this winter was 2.7 degree Celsius lower than last year.

 

CJ Group makes headway overseas [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2932002

Summary: Two subsidiaries of CJ Group have established footholds in foreign markets as part of the group¡¯s push to increase its global presence.   CJ Cheiljedang, the leading food and bio-product manufacturer, announced yesterday that it has signed a deal to supply instant steamed rice and other food products to Costco Mexico, the Mexican unit of Costco Wholesale.   Products already available at Costco Mexico¡¯s 32 outlets include instant rice bowl HetBahn, which was first exported to Costco Mexico last August. CJ Cheiljedang will also supply the retail chain with BBQ sauce and dumplings.   CJ Cheiljedang also expects to sign a deal with Sam¡¯s Club - a Wal-Mart affiliate with roughly 170 outlets in Mexico - to supply products this year. It forecasts revenue of $6 million from exports to Mexico in 2011.

 

Farm subsidy fraud [English, CSY]

http://english.donga.com/srv/service.php3?biid=2011021112888

Summary: The government spent more than 127 trillion won (113.34 billion dollars) for agriculture in the form of subsidies or loans from 1992 through 2007. Despite the huge investment, Korean agriculture is still globally uncompetitive, and farmer incomes have risen little. This is the failure of agricultural populism in ignoring economic efficiency for the sake of political considerations.   Moral hazard, waste, corruption and collusion are closely related to farm subsidies. Only about five percent of farmers are estimated to benefit from subsidies or low-interest loans. Certain farmers care nothing about farming but are busy lobbying and entertaining government officials who have the authority to allocate subsidies. That is why farmers deplorably say, ¡°Do you farm at a waterhole or a cafe?¡±

 

 

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¡±.

View List >

Agricultural Trade Office, U.S. Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921
Email: atoseoul@state.gov