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Food News Clipping

June 16, 2011

2011.06.16

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues
Today's Date:  Thursday June 16, 2011
For Coverage: June 15 - 16, 2011
 
 

1. BILATERAL/MULTILATERAL ISSUES

 

<6/14/2011>Lee, Sohn may seek compromise over FTA [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/06/116_88891.html

Summary: The country¡¯s free trade agreement (FTA) with the United States is emerging as the main topic for discussion at a proposed meeting between President Lee Myung-bak and main opposition Democratic Party (DP) Chairman Rep. Sohn Hak-kyu, which may take place as early as this month.The trade pact, signed in 2007 and supplemented last December, has been awaiting approval from the legislatures of both countries.   The Lee administration has been calling for an early ratification of the deal, but the main opposition party has demanded a renegotiation, saying the accord favors the U.S.

 

The fate of the Korea-U.S. FTA has become more uncertain since the new leadership of the ruling Grand National Party (GNP) said there won¡¯t be ¡°unconditional support¡± for the deal in what appears to be a power game with the presidential office.

 

2. GRAIN & OILSEED ISSUES

 

Labeling Rice Quality Mandatory in Korea from Nov. 1 [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=117089&code=Ne2&category=2

Full text: Korea's Ministry for Food, Agriculture, Forestry, and Fisheries has announced that mandatory labeling of its quality grading system for rice will be implemented from November 1st, this year.  The ministry said Wednesday that the new labeling system is aimed at encouraging quality competition among domestic rice producers to boost dropping rice consumption in the country.   Under the new system vendors will be obligated to categorize the quality of their rice into one of five grades depending on factors such as the amount of protein.

 

3. LIVESTOCK ISSUES

 

Foot and mouth disease to speed up consolidation of Korea¡¯s animal feed market [English, CSY]

http://www.ft.com/cms/s/2/4ae3ece6-9298-11e0-96e0-00144feab49a,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html#axzz1POguxa00

Summary: South Korea¡¯s recent foot and mouth animal outbreak is likely accelerate market consolidation in the animal feed space, according to a number of industry experts and deal-makers interviewed by mergermarket.  Animal farming and agricultural companies such as Easy Bio System [Kosdaq: 035810], Farmsco [Kospi: 036580], CJ Feed and Sajo Bio Feed could be potential buyers, given their past and ongoing M&A activities, the sources and sector analysts suggested.  Large companies considering economies of scale and small companies seeking investments have been driving market consolidation in the space since the early-2000s, said Jin Ho Hong, a sector analyst at IBK Investment Securities.

 

There were 40 animal feed producers in early-2000, but that number has shrunk to 30, said Soon Chan Hong, a market research officer at Animal Feed Association. Cnsolidation had slowed in recent years, but with South Korean companies now experiencing the fourth and largest animal disease outbreak since the year 2000, M&A activity is picking up pace, Hong said.  Approximately 3.5m cows, pigs, goats, and deer have been slaughtered to prevent the spread of foot and mouth disease, according to the Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF). Losses to farmers could reach KRW 1.8trn (USD 14bn). The Korean government is in the process of compensating them, an MIFAFF spokesperson said.

 

4. OTHER MISCELLANEOUS ISSUES

 

CJ Cheiljedang gets back to its roots - sugar [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2937631

Summary: As a mature market saddled with slow growth and lurching international commodities prices, Korea¡¯s sugar industry has had little to be excited about. But CJ Cheiljedang wants to change that.  Yesterday, the nation¡¯s largest food company and top sugar producer introduced its new ¡°xylose sugar¡± product at a press conference at the company¡¯s headquarters in Ssangnim-dong, central Seoul.  Xylose is a natural sugar found in plants that the company is pitching as a healthy substitute for white sugar.

   

 

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