Today's Date:     Monday, January 30, 2012

1. BILATERAL/MULTILATERAL ISSUES

Jeju tangerine will be endangered once Korea-China FTA comes into effect [Korean: YJY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=198199&subMenu=dsearch&key=감귤

Summary: According to KREI’s research, Jeju tangerine will be greatly threatened by Chinese tangerines under Korea-China FTA.  China’s production of tangerines is already 34 times greater than that of Korea.  On top of that, Chinese tangerine industry is rapidly growing as the government has regional development plans, including specialized complexes to not only increase production but also improve quality and competitiveness.  In 2023, after 10 years of the FTA coming into effect in 2013, Korea’s tangerine production will drop as the value adds up to KRW 1,644 trillion.

2. GRAIN & OILSEED ISSUES

Makgeolli brewery to open in U.S. [Korean: CJW]

http://www.koreaherald.com/national/Detail.jsp?newsMLId=20120130000780

Summary: Baesangmyun Brewery Co. plans to set up a brewery for Korean rice wine, or makgeolli, in the U.S. as part of its efforts to expand overseas.  The company said it has recently clinched a deal with an entrepreneur based in Chicago to build the facility there and begin producing 50,000 bottles of the traditional Korean beverage a month as early as July.  The company officials said that they are taking steps to obtain approval from the U.S. FDA for the initiative.

Consumption of Staple Grain Continues a Decline [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/01/31/0318000000AKR20120131082400002.HTML

Summary: According to Korea Statistics Office, consumption of staple grain, including rice, amounted to 78.6 kilogram per person in 2011, down 3.3 percent from the previous year. 

3. LIVESTOCK ISSUES

The secret hidden behind the U.S. beef and KORUS FTA Talks [Korean: BYK]

http://www.idomin.com/news/articleView.html?idxno=369903

Summary: This article carries some of the stories that came out from wiki leaks, such as the discussions between Shi Joong Choi and U.S. Ambassador on January 17, 2008.  During the meeting, they discussed the President Lee’s visit to the United States and how it would help if the U.S. beef imports were to have resumed prior to the visit.  This article is an introduction to the book that was published in Korean, “The Things They Know but We don’t….The Naked Body of Korea that Wiki leaks Revealed.”

Only 6% of Japanese beef handlers meet edible beef standards [Korean: BYK]

http://www.hkbs.co.kr/hkbs/news.php?mid=1&treec=252&r=view&uid=222624

Summary: According to the result put out by the Japanese Ministry of Health & Welfare, only 6 percent of the Japanese business that handled beef met the standards for edible beef.  It conducts an investigation on 445 restaurants, meat processors, and beef retail outlets that sold with beef and came up with such results.  . 

Livestock farmers strongly oppose resumption of Canadian beef imports [Korean: BYK]

http://www.joongboo.com/news/articleView.html?idxno=771719

Summary: Livestock farmers in the Gyunggi province are strongly opposing the resumption of Canadian beef imports.  They are claiming that resumption of the Canadian beef imports in the midst of a collapse in domestic cattle prices is like killing the farmers twice.

United States asks Taiwan to open up its beef market [Korean: BYK]

http://www.wowtv.co.kr/newscenter/news/view.asp?bcode=T30001000&artid=A201201300197

Summary: The Taipei Times reported that American Institute in Taiwan (AIT) Chairman Raymond Burghardt will press hard for a breakthrough in the US-Taiwan beef dispute when he arrives in Taipei for private talks with President Ma Ying-jeou.  Sources close to Burghardt said the beef issue would “most likely” top his agenda, while Ma was expected to concentrate on the possible future sale of F-16C/D aircraft and US help in acquiring diesel-electric submarines.

South Korea to resume Canadian beef imports… aggravating Korean farmers [Korean: CJW]

http://www.joongboo.com/news/articleView.html?idxno=771719

Summary: Livestock farmers in Kyung-ki province are furious over South Korean market reopening to Canadian beef imports next month.  Korean government is facing harsh criticisms from domestic farmers who are concerned about plummeting domestic cattle prices.  According to MIFAFF, however, “Canadian beef import is not a problem since it is only 5% of all the beef imports.”  NACF has added that it will “actively cooperate in improving domestic beef quality and its competitiveness in the market.”

High-quality Korean beef continues to hold [Korean: CJW]

http://www.nongmin.com/article/ar_detail.htm?ar_id=198142&subMenu=articletotal

Summary: Whenever there is a drop in commodity price of the Korean beef, farms with high-quality beef have more profits.  There is also price discrepancy due to differences in the top grade 1++ hanwoo and the lowest grade 3.  According to Korea Institute for Animal Products Quality Evaluation (KAPE), “Korean cattle breeding farms have been severely hit by the fall in beef prices and soaring animal feed prices. It is thus important to maintain high quality.”

4. MARKETING ISSUES

More consumption on wines over soju [Korean, LSH]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201201291214491&code=920401

Lotte Mart stated, “for the very first time, wine sales has proceeded that of soju by 0.2% the second half of 2011.” Sales of soju was 5.1% higher than wine last year over all; however, Lotte Mart outlooks the opposite way this year. The implementation of KORUS FTA brings 15% drop off of tariff so that the consequences will boost the wine sales. Demand for wine liquor has rapidly increased in 2004, after Korea-Chile FTA. The demand seemed falter for a while, but it has started to grow up from 2010.    

Liquor to be Subject to Food Sanitation Law [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/01/30/0302000000AKR20120130183500017.HTML

Summary: Ministry of Health & Welfare announced on January 31 that it was going to submit a revision for the food sanitation law to the national assembly within this year which will include liquor as a product that is subject to the law.  Currently administration of food safety policy for liquor product is under the authority of the National Tax Office.  The Ministry of Health & Welfare stated that the revision will provide better safety monitoring and control over liquor products.

5. NORTH KOREA ISSUES

China sends rice to N. Korea [Korean: CJW]

http://english.chosun.com/site/data/html_dir/2012/01/31/2012013100733.html

Summary: China has reportedly sent hundreds of thousands of tons of rice to North Korea to help the Stalinist country maintain stability after leader Kim Jong-il’s death.  Do Hee-yoon of South Korean activist group Citizen’s Coalition for Human Rights of Abductees and North Korean Refugees on Monday said thousands of Chinese cargo trucks carrying bags of rice entered the North between Jan. 9 and right before the Lunar New Year holidays.  The Tokyo Shimbun reported Monday that China decided to supply the North with 500,000 tons of food and 250,000 tons of crude oil right after Kim’s death.

6. MIFAFF PRESS RELEASES

► MIFAFF to host workshop between the Minister and Directors of Agriculture Policy Division in 161 provincial governments

► Makgulli Nuevo!  Settles down as a new consumption trend

► Strawberries selected as the fruit of the month for February

► MIFAFF Minister to receive briefing on 2012 plans for R&D projects at RDA

► Plant our soybean seeds that is free from concerns over LMO

► MIFAFF holds seminar on fostering of aquaculture farm

►  MIFAFF to expand domestic soybean supply to 35% of its demand until 2015.

►  MIFF to hold explanatory sessions on 2012 R&D projects on Jan. 31.

►  Makgeolli Nouveau rising as a new trend. It shows 31% increase in annual sales.

►  February’s horticultural product is strawberry.