Market Information   >   Food News Clipping

Food News Clipping

March 30, 2011

2011.03.30

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues
Today's Date:   March Wednesday 30, 2011
For Coverage:  March 29 - 30, 2011
 
 
1. BILATERAL/MULTILATERAL ISSUES

 

FTA doubles Korea¡¯s market share in Chile [English, CSY, OYS]

http://joongangdaily.joins.com/article/view.asp?aid=2934100

Summary: Korea¡¯s market share in Chile has more than doubled since its free trade agreement with the South American country went into effect seven years ago.  The Korea International Trade Association, marking the anniversary of Korea¡¯s first FTA on April 1, said the pact¡¯s success underscored the benefits of signing trade deals with other countries. Trade between Korea and Chile has increased significantly because tariffs have either been eliminated or deeply cut.   KITA said Korea¡¯s exports to Chile increased at an annual average rate of 33.9 percent, while imports rose by 26.8 percent a year.  The jump in exports came as Chile¡¯s duties on Korean products were reduced from an average of 6 percent to 0.54 percent, while its tariffs for products originating from countries that don¡¯t have a free trade deal still remain at around 6 percent.   As a result, the market share of Korean products in Chile grew to 6.41 percent in 2010 compared to 2.98 percent in 2003, before the FTA was ratified.

 

Parties to intensively discuss EU FTA next month: lawmaker [English, CSY, OYS]

http://english.yonhapnews.co.kr/national/2011/03/30/69/0301000000AEN20110330001300315F.HTML

Summary: Rival parties will intensively deliberate the South Korea-European Union (EU) free trade agreement with an aim to pass it through the parliament sometime next month, a chief lawmaker said Wednesday.   "The parliament will convene a plenary meeting of a standing committee around April 7-8 to present a ratification motion for the pact, right after finishing a government interpellation session," Rep. Nam Kyung-pil of the ruling Grand National Party (GNP), who chairs the parliamentary committee in charge of screening the deal, told Yonhap News Agency by phone.

 

Lee Jae-oh calls for early ratification of Korea FTA to enhance U.S. foothold in Asia [English, OYS]
http://english.yonhapnews.co.kr/news/2011/03/30/0200000000AEN20110330000300315.HTML

Summary: WASHINGTON, March 29 (Yonhap) -- A South Korean cabinet minister Tuesday called for early ratification of a free trade deal with the United States, saying the deal will help consolidate the U.S. presence in Northeast Asia.

 

"The Korea FTA's ratification is essential for the U.S. to maintain its presence and credibility in the Korean Peninsula and other Northeast Asian nations whose economies continue to merge," Lee Jae-oh, South Korean minister in charge of political affairs, said in a speech to the National Press Club here. "The Korea FTA will also increase human exchanges both in quality and quantity and understanding of each other's culture."

The Obama administration has yet to present the deal to Congress as some congressmen have threatened to block ratification unless similar deals with Colombia and Panama are sent together.

 

Kirk confident Congress will give strong support to Korea FTA [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/30/0200000000AEN20110330000200315.HTML
Summary: WASHINGTON, March 29 (Yonhap) -- The chief U.S. trade negotiator said Tuesday that he is confident that the trade deal with South Korea will get strong backing when it is submitted to Congress for approval.

"Korea has more broad-based support than any free-trade agreement we have done in recent years," U.S. Trade Representative Ron Kirk told Bloomberg Television. "We are confident it should get very strong support when Congress moves that forward."

Kirk stopped short of
saying when the Korea FTA, signed in 2007 under the previous Bush administration, will be presented to Congress. Some congressmen are threatening to derail the deal unless the Obama administration submits it together with similar agreements with Colombia and Panama.

 

2. ECONOMIC ISSUES

 

Korea¡¯s dangerous import dependence [English, OYS]

[SERI FOCUS] Only a few regions provide the bulk of the country¡¯s commodities

http://joongangdaily.joins.com/article/view.asp?aid=2934000

Summary: Soaring international commodity prices due to shortages are increasing the overall price tag on Korea¡¯s imports and exacerbating inflationary pressure. The rise in international commodity prices has contributed to 70 percent of the rise in import price in recent months. Moreover, the upward trend is not easing. In February, the contribution rate of agriculture, fishery and forestry products to the rise in import prices nearly doubled, rising to 9.4 percent from 4.8 percent in 2009.

 

S. Korean economy grows 6.2 pct in 2010 [English, OYS]

http://english.yonhapnews.co.kr/business/2011/03/30/4/0503000000AEN20110330000800320F.HTML
Summary: SEOUL, March 30 (Yonhap) -- The South Korean economy grew 6.2 percent last year, the fastest expansion in eight years, on the back of robust exports and improved domestic demand, the central bank said Wednesday.

The country's gross domestic product (GDP), the broadest measure of economic performance, was revised up from an earlier estimate of 6.1 percent for last year, according to the Bank of Korea (BOK). It marked the fastest growth since Asia's fourth-largest economy expanded 7.2 percent in 2002.

The bank also raised economic growth in 2009 to 0.3 percent from its earlier projection of 0.2 percent.

 

S. Korea ranks 2nd in consumer prices hike in Feb. [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/30/0200000000AEN20110330001700320.HTML

Summary: SEOUL, March 30 (Yonhap) -- South Korea's consumer prices grew at the second-fastest pace among member countries of the Organization for Economic Cooperation and Development (OECD) in February, data showed Wednesday.

According to the data offered by the OECD, South Korea's consumer prices jumped 4.5 percent last month from a year earlier, the second steepest hike among its 34 member nations. Estonia ranked first with 5.7 percent.

 

3. GRAIN & OILSEED ISSUES

 

S. Korean Gov¡¯t to Curtail Rice Yields, but Increase Other Grains [English, CSY]

http://news.mk.co.kr/english/

Full text: The South Korean government will curtail rice-producing areas by 16% and increase areas for cultivation of wheat, beans and corns significantly by 2015. The government made the decision on grounds that Korea is far short of domestic production of the three grains, while rice yields are in surplus throughout the country. The government decided to provide three million won ($2,673) in subsidy per hectare for farmers who raise alternatives to rice.   The Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF) said on Thursday it plans to renew its strategy for grain cultivation, coordinate with related government agencies and announce the new strategy next week at the earliest.   Considering the current domestic demand for rice, the appropriate rice yields for Korea are 3.7 million tons. However, the government estimates that recent rice yields have reached as much as 4.45 million tons in the recent three years.

 

However, the situation is totally different with other types of grains. Korea imports 14 million tons of pricey wheat, beans and corns from other countries every year, because of the country¡¯s low sufficiency rates for the grains.  To tackle the dilemma, the government plans to cut the area of rice paddies from 890,000 to 700,000 hectares, a level that is regarded as appropriate, by 2015 through providing subsidies.  Of the 190,000 hectares that will be turned into areas for other grains, 60,000 hectares will be saved for wheat, beans or corns, as farmers are likely to switch to the alternatives voluntarily. For a total of 40,000 hectares out of the rest 130,000 hectares, farmers will be encouraged to produce alternatives to rice in return for three million won per hectare in annual subsidy. The remaining 90,000 hectares will be used for raising specialty rice for processing and crops for cattle feed under the government¡¯s intention.

 

4. LIVESTOCK ISSUES

 

The toxin in pork that China bans, Korea permits [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2934131

Summary: China is cracking down on two chemical additives used illegally on pig farms - and threatening to execute farmers who break the law banning their use.  But one of the dangerous chemicals is legal in Korea and fed to some domestic pigs. The chemical, ractopamine, can cause respiratory problems or kidney malfunctions in humans, even if only small amounts are ingested.   More than 150 countries prohibit the use of ractopamine, including Taiwan, Malaysia and the European Union, although 20 countries allow it, including the United States, Australia, and Brazil.   ¡°Because many countries currently prohibit the use of ractopamine, the Korean government should reconsider [the chemical¡¯s] safety,¡± said Lee Mun-han, a professor at Seoul National University¡¯s College of Veterinary Medicine.

 

Infectious germ found in Japanese baby formula [English,CSY]

http://english.donga.com/srv/service.php3?bicode=020000&biid=2011033062138

Summary: E-coli has been detected in baby formula from Japan, making parents with young babies and toddlers increasingly nervous.   Infectious germs have been discovered in Japanese baby formula after staphylococcus aures was detected in baby formula early this month from Korea¡¯s Maeil Dairy.   The National Veterinary Research and Quarantine Service said Tuesday that enterobacter sakazakii, a type of E-coli, was detected in Japanese baby formula. If the bacteria is consumed by newborns with poor immune systems and low birth-weight infants, it can cause meningitis or enteritis.   The product in question is Wakodo Gungun produced by Japan¡¯s Wakodo. A combined 3,851 kilograms of the product was imported to Korea on six occasions last year, and 2,954 kilograms have been imported on two occasions this year.

 

Massive water pollution detected near livestock burial sites[English, OYS]

http://english.yonhapnews.co.kr/Subscription/index.html

Summary: SEOUL, March 29 (Yonhap) -- A large number of underground water sources near livestock burial sites nationwide have shown high rates of organic contaminants, the Environment Ministry said Tuesday, raising concern over widespread environmental pollution caused by livestock disease and culling.

The ministry and a state
water research center said they have jointly examined water quality at about 3,000 underground water sources within a 300-meter radius of animal burial sites across.

 

5. MARKETING ISSUES

 

Koreans Pay Higher Prices for Pork, Beef, and Garlic [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=114288&code=Ne2&category=2

Full text: Seoulites pay higher prices for beef and pork compared to consumers in 10 other major cities, including New York, Paris and Tokyo.  According to a recent survey by the Korea Consumer Agency, the price of pork in Seoul is the highest among the 11 cities polled and more than twice the average.  Out of 22 items surveyed, 10 others, in addition to the meat, were found to be more expensive, including garlic, snack food, and denim jeans.  However, Koreans pay lower prices for staples like ramen noodles, flour, and sugar.  The agency says the price discrepancies are largely explained by differences in distribution systems and consumer preferences.  And it says it plans to make recommendations regarding local prices to related offices and ministries.

 

6. NORTH KOREA ISSUES

 

U.S. has not yet made decision on food aid to N. Korea; State Dept. [English, OYS]
http://english.yonhapnews.co.kr/news/2011/03/30/0200000000AEN20110330000500315.HTML

Summary: WASHINGTON, March 29 (Yonhap) -- The United States Tuesday expressed concerns about chronic food shortages in North Korea, but stopped short of committing food aid to the impoverished communist state.

"We remain concerned about the well-being of the North Korean people," State Department spokesman Mark Toner said at a daily briefing, but added, "No decisions have been made to provide food aid."

Toner was responding to the calls by the United Nations for the provision of 430,000 tons of food to North Korea to avoid "the risk of malnutrition and other diseases" for millions of children, women and the elderly in the North, stricken by floods and severe winter weather. A U.N. monitoring team concluded a fact-finding mission in North Korea early this month.

 

7. OTHER MISCELLANEOUS ISSUES

 

Korea found a trace of Cesium in food from Japan [Korea, CSA]

http://news.naver.com/main/read.nhn?mode=LSD&mid=shm&sid1=101&oid=001&aid=0004984708

Summary: KFDA found a trace amount of cesium in two samples of food products produced in the four prefectures in Japan.  The two products are processed bean products and vitamin and the detected level is 0.5 – 0.6 Bq/kg, which is below one hundredth of Korea¡¯s established standard.  KFDA explained that this level may be considered to be non-detection since it is too low. 

 

More story in KFDA¡¯s press release posted today on the website:  To date, KFDA has collected 986 samples; 244 samples have passed the test and 742 samples are under testing.  KFDA detected a trace amount of Cesium in 13 samples and Iodine in one sample but the detected levels are too low, which all meet KFDA¡¯s standards.

 

 S. Korea, U.S. to discuss launch of mechanism on food, medicine safety: health minister [English, OYS]
http://english.yonhapnews.co.kr/news/2011/03/30/0200000000AEN20110330000100315.HTML

Summary: WASHINGTON, March 29 (Yonhap) -- South Korea and the United States have agreed to sign a memorandum of understanding next year for the exchange of personnel and information on food and drugs.

The agreement was sealed at a meeting between South Korean Health and Welfare Minister Chin Soo-hee and U.S. Secretary of Health and Human Services Kathleen Sebelius at the latter's office here Monday, Chin's office said in a statement.


 

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