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Food News Clipping

February 25, 2011

2011.02.25

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues
Today's Date:   Friday February 25, 2011
For Coverage:  February 24 - 25, 2011
 
 
1. BILATERAL/MULTILATERAL ISSUES
 

'Typo' in Korea-EU FTA Threatens Ratification [English, CSY]

http://english.chosun.com/site/data/html_dir/2011/02/24/2011022401214.html

Summary: Some figures in the Korea-EU FTA submitted by the government to the National Assembly in October last year are different from the English-language original, it emerged Wednesday. The Ministry of Foreign Affairs and Trade admitted the mistake, but lawmakers are angry that it pushed for ratification without correcting them.   Park Joo-sun of the main opposition Democratic Party on Wednesday said the ministry made a mistake in the course of translating the FTA into Korean and mistyped the percentage of non-originating material permitted for toys and wax goods at 40 percent and 20 percent respectively instead of 50 percent. "If this version had been ratified, we'd have made a considerable loss in tariffs and been subject to an international ridicule," Park said.

 

US industry wants early ratification of FTA [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/02/116_82033.html

Full text: U.S. industries want Congress to ratify a free trade agreement with Korea (KORUS FTA) early to prevent possible business loss in Korea as the country also signed a similar deal with the European Union, a South Korean envoy said.   Han Duk-soo, Korean ambassador to the United States, told reporters Thursday that U.S. businesses voiced concern over the delay of the ratification as it is obvious that they will lose out in the Korean market if the congressional approval comes far behind the ratification of the Korea-EU FTA.   The envoy made the remarks amid the National Assembly¡¯s move to pass the trade deal with the EU in March at the earliest.   South Korea and the United States signed the additional deal last year. The Ministry of Foreign Affairs and Trade submitted the motion to the National Assembly Foreign Affairs Committee.   Lawmakers here, however, have not begun discussing it.   They will wait to see how the U.S. Congress will handle the trade bill. If they pass it, Korean legislators plan to read the motion at the legislature.   Han visited Seoul for the annual conference of Korean mission chiefs held in Seoul for five days from Monday. 

 
2. ECONOMIC ISSUES
 

Higher food costs hurt sentiment [English, CSY]

Outlook is the weakest since May 2009

http://joongangdaily.joins.com/article/view.asp?aid=2932694

Summary: The rise in food prices, partly caused by the outbreak of foot-and-mouth disease, caused consumer confidence this month to slump to its lowest level since May 2009, the central bank said yesterday.  The consumer sentiment index - which measures attitudes on the economic outlook, living conditions and future spending - stood at 105 for February, down from 108 in January.   A reading above the benchmark 100 means optimists outnumber pessimists. The index, widely used to gauge the future direction of private spending, has stayed above the 100-point level since May 2009.  The survey, based on a poll of 2,071 households in 56 major cities, was conducted from Feb. 11-18.

 

 
3. GRAIN & OILSEED ISSUES
 

Russia May Extend Embargo on Its Grain Exports ¡¦ Adding Pressure on International Grain Inflation [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011022350301&sid=0105&nid=005&ltype=1

Summary: Russian vice prime minister commented on Feb. 23 that Russia may extend the embargo on its grain exports, which is currently scheduled to end on July 1.  Russia was a leading exporter of wheat to the world before the embargo, accounting for 14% of total wheat trade in the world in 2009.  

 

4. LIVESTOCK ISSUES

 

FMD-related damages hover around 3 tln won: farm minister [English, CSY]

http://english.yonhapnews.co.kr/business/2011/02/24/0501000000AEN20110224011000320.HTML

Summary: Damages caused by the severest foot-and-mouth disease (FMD) outbreak in South Korea's history hovers at around 3 trillion won (US$2.6 billion), the country's farm minister said Thursday.  In a meeting with reporters, Yoo Jeong-bok said that direct losses to livestock and money used for quarantine efforts and compensation is estimated at around 2 trillion won, with the rest involving environmental corrective measures.

 

PM blames climate, FMD for inflation [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/02/113_82031.html

Summary: Prime Minister Kim Hwang-sik countered the allegation Thursday that a misguided monetary policy was responsible for soaring prices, saying inflation is a combined result of climate change, foot-and-mouth disease (FMD) and other non-policy factors.  During the National Assembly¡¯s interpellation session, Kim vowed to curb inflation by lowering tariffs and taking other necessary policy measures.  But opposition party lawmakers, including Rep. Park Byeong-seug of the main opposition Democratic Party (DP), urged him to take firmer action. They called for replacing Cabinet ministers responsible for an allegedly wrong policy package, if necessary.
 

4. MARKETING ISSUES

 

Jonny Rockets to Open its First Store in Korea in Shinsegae Department Store Gangnam [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/02/24/0318000000AKR20110224065600003.HTML

Jonny Rockets, an American premium hamburger restaurant chain, will open its first store in Korea in Shinsegae Department Store Gangnam on February 25, according to the local partner Shinsegae Food Co.  Jonny Rockets, established in 1986, now operates 300 stores in 12 countries.  Shinsegae Food plans to open another store in Paju next month.
 

5. OTHER MISCELLANEOUS ISSUES

 

Imported Seafood Takes over Dining Table due to Fish-flation [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20110223/35073620/1

Summary: A recent visit to Noryangjin Fishery Market revealed that imported seafood accounted for much of the seafood supply in Korea these days.  It was hard to find local seafood in the market.  Traders commented that due to the rising price and decreasing supply, local seafood was loosing market share.  According to Shinsegae E-Mart, imported seafood accounted for 25 percent of total seafood sales of the store as of February 2011, sharply up from 20 percent in 2010 and 17 percent in 2009.  Lotte Department Store is currently selling small octopus (live) imported from Thailand which is shipped through air freight.  Despite the high cost of air freight, the retail price of this Thailand octopus (1,216 won per 100 gram) is much cheaper than local octopus (1,933 won per 100 gram). 

 

 

Carrefour China Faces Challenges [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011022345591&nid=000&ltype=1

Carrefour China, the largest foreign-owned hypermarket store chain in China (operates a total of 182 stores) has closed seven stores over the last six months due to sluggish sales.  Carrefour China has been under attack by consumer groups and local authorities for taking too much mark ups and not paying enough to its employees.  Eleven of the stores under Carrefour China were charged with a total of 500,000 Wien of fine for deceiving prices last month.  The changing business environment in China is presenting new challenges to foreign retailers.  
 
 

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
Email: atoseoul@state.gov