Grain shortage halts UN food processing factories in N. Korea: report [English, CSY]

http://english.yonhapnews.co.kr/national/2013/06/04/81/0302000000AEN20130604003700315F.HTML

Summary: Grain shortages caused some United Nations (UN) food processing factories in North Korea to shut down temporarily, hurting ongoing support to nourish people in the communist country, a report said Tuesday.    World Food Programme spokeswoman Nanna Skau told Radio Free Asia (RFA) that operations at five of the international organization's 14 food factories in the North have been halted because of grain shortages. The production facilities make fortified biscuits mainly for children.  Grain provided to the North has dropped sharply in recent months after Pyongyang launched a long-range rocket and detonated its third nuclear device, in defiance of strong warnings from the international community.  The country has been slapped with fresh sanctions for its latest provocations in early March.

Oregon Wheat Shipment Found to Contain GMO Varieties [English, CSY]

http://www.koreaittimes.com/story/29065/oregon-wheat-shipment-found-contain-gmo-varieties

Full text: A shipment of wheat and wheat flour from the U.S. state of Oregon has been found to contain genetically modified varieties. Most of the cargo has been delivered to Korea's major flour mills, including CJ Foods, Daehan Flour Mills, Samyang Milmax, DongA One, Samhwa Flour Mills, Korea Flour Mills, and Daesun Flour Mills.  The Ministry of Food and Drug Safety said on May 31 it has visited all seven food processors on the 30th and secured samples for further test. It also said it has dispatched inspectors to two small-sized trading firms that import flour from Oregon. The genetic test results on the suspected samples will be available next week.  Earlier, the food and drug regulator had set out an inspection on all recent shipments of wheat and wheat flour imported from the United States upon receiving notifications from U.S. authorities.

<5/31/2013>Korea taking precautions against U.S. wheat, flour imports from Oregon [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=147741

Full text: The genetically modified wheat in question is a product of the U.S. biotech company Monsanto, which had been under fire in the past for its genetic engineering of crops.  The company tried to get approval for a variety of genetically modified wheat that could withstand herbicides,.. but failed because of a public backlash and ended its campaign in 2005.  The U.S. Department of Agriculture said it had found the genetically engineered wheat growing at a farm in Oregon.   The U.S. Food and Drug Administration says the variety of genetically modified wheat is safe for human consumption but it was not approved by the government for farming or commercial purposes.   Still, Korea is not taking any chances.  Korea's Ministry of Food and Drug Safety says it is investigating all wheat and wheat products imported from the U.S. and could halt or return the products if traces of genetically modified wheat are found.  Korea is one of the largest importers of U.S. wheat and flour, .. with one-third of the country's wheat imports coming from Oregon.   Japan has put an immediate halt to some U.S. wheat imports and cancelled a plan to import more than 24-hundred tons of U.S. wheat.  Other major importers, including the European Union, have followed suit.

Genetically Modified Wheat Found in the U.S.  … Possibly Have Entered Korea [Korean, OSY]

http://news.donga.com/3/all/20130531/55538048/1

Summary: GMO wheat that was banned from cultivation and sales was found in a farm in Oregon state.  Japan has immediately stopped importation of American wheat while Korea and EU have mandated 100% inspections on imported American wheat.  USDA reported on May 29 that “the GMO wheat found was a Round-Up wheat developed by Monsanto.  The U.S. authority is investigating how the GMO crop has leaked to the commercial farming”.  The U.S. has approved GMO corns and soybeans for commercial cultivation but no GMO wheat has been approved for cultivation or sales other than research purposes.  Monsanto reportedly tested GMO wheat varieties between 1998 and 2005 in 15 U.S. states but did not apply for commercial applications to the U.S. government reflecting high anti-GMO voice in the market.  Experts agree that founding of GMO wheat in Oregon may have a serious impact on U.S. wheat exports.  In particular, Asian countries that maintain high safety concerns on GMO crops may introduce import restrictions on American wheat as a result.  Asian countries currently import one third (40 million tons) of the total wheat traded around the world annually.  The U.S. is the largest exporter of wheat to the world and over half of American wheat exports are to Asian countries.  Considering the possible impact to the market, USDA pointed out that no evidence had been found if the GMO wheat had been marketed, and the GMO wheat found in Oregon was safe for human consumption.  However, Japan has suspended import clearance on American wheat on May 30 due to safety concerns.  Korean Ministry of Food & Drugs Safety also announced that all Oregon wheat and wheat flour imported into Korea will be subject to mandatory testing.  Shipments tested positive for the GMO will be shipped back to the U.S.  Since 2010, Oregon wheat imported into Korea was total 562 shipments, 1.71 million tons.

S. Korea intensifies inspection of U.S. wheat for genetic modification [English, CSY]

http://english.yonhapnews.co.kr/news/2013/05/31/0200000000AEN20130531001900320.HTML

The government said Friday that it has strengthened its inspection of U.S. wheat imports following the discovery of unapproved genetically modified wheat in Oregon.  Currently, the country inspects a 1-kilogram sample from each shipment of U.S. wheat, according to the Ministry of Agriculture, Food and Rural Affairs.

2. LIVESTOCK ISSUES

<5/30/2013>OIE Says U.S. Beef Is Safe from Mad Cow Disease [English, CSY]

http://english.chosun.com/site/data/html_dir/2013/05/30/2013053001659.html

Full text: The World Organization for Animal Health (OIE) has upgraded the U.S.' risk classification for mad cow disease from "controlled" to "negligible."   The decision came at an annual meeting on Wednesday. The OIE is an international organization headquartered in Paris that is responsible for ensuring safety and hygiene of animals and livestock.   The livestock industry here worries that this will mean that the U.S. will demand the lifting of restrictions on exports of beef to Korea.

Korea DuckHerd Completes Building of Asia's Largest Duck Meat Processing Plant [English, CSY]

http://www.koreaittimes.com/story/28924/korea-duckherd-completes-building-asias-largest-duck-meat-processing-plant

Full text: Korea DuckHerd, Korea's largest duck meat processor, said on May 28 it has completed building Asia's largest duck meat processing plant in the Jangheung Industrial Zone, South Jeolla Province. The 33,000-square-meter plant has a capacity to slaughter 72,000 ducks and process 36,000. In addition, the plant is equipped with state-of-the-art automated system from slaughter to processing and to packing.

With the latest processing facility as the competitive advantage, the company plans to expand toward overseas markets. Korea DuckHerd has already achieved an export goal of US$5 million in Australia last year. Starting next year, it will aggressively move in to the high-end Chinese market.  Park Young-jin, president of Korea DuckHerd, said, "The Jangheung plant will raise the bar for the whole duck meat processing industry with its world-class facility and systems. From next year, we will actively pursue overseas markets such as China, Japan, Taiwan, and Southeast Asia."    Korea's duck meat market has doubled for five years to 1.5 trillion won in 2011 from 650 billion won in 2006. Per-capita duck meat consumption has increased more than four times to 3.13 kilograms in 2011 from 0.72 kg in 2004.

3. NORTH KOREA ISSUES

N. Korean farmers planting rice with profits in mind [English, CSY]

http://www.koreaherald.com/view.php?ud=20130602000090

Summary: North Korean farmers knee deep in muddy paddies across the country have a new incentive during this year’s crucial rice planting season: possible bonuses that are part of an economic shift echoing ally China’s steps three decades ago toward embracing capitalism.  Details about the changes are emerging nearly two months after the regime unveiled dual goals of building the economy and nuclear weapons in the first concrete economic policy laid out by leader Kim Jong-un since he took power in December 2011.  Farmers say they have begun working under the new policies, which are designed to boost production by giving managers and workers financial incentives. Foreign analysts say the moves to spur North Korea’s moribund economy suggest Pyongyang is taking cues from Beijing on how to incorporate free market ideas within its rigid socialist system.

4. OTHER MISCELLANEOUS ISSUES

Seoul eyes export of bottled tap water [English, CSY]

http://english.yonhapnews.co.kr/business/2013/06/03/73/0503000000AEN20130603002100315F.HTML

Summary: The Seoul municipal government is mulling exporting its tap water as part of efforts to promote its high quality and the city's advanced drinking water treatment system, officials said Monday.    Apart from providing "Arisu" to 10 million citizens here, the city produces some 8 million 350-milliliter bottles of the tap water per year and supplies them to the Presidential Office and various international conferences in Seoul for free.   The Office of Waterworks under the Seoul Metropolitan Government is weighing the sale of Arisu, the old name of the Han River that cuts through the capital, in overseas markets after blind tests have confirmed its good taste and high quality, according to the officials.  The city will first target China and East Asian countries, and plans to further expand its market.

Korea Customs Service to probe large beverage makers [English, CSY]    

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

Full text: Following a massive investigation by South Korea’s tax agency into allegations about offshore slush funds amassed by conglomerates to evade taxes, Korea Customs Service (KCS) will open its investigation into large beverage makers on suspicion that they failed to comply with the origin requirements specified for those goods in a free trade agreement.   If they are found to have violated the requirement, they will have to pay up to 8 percent import tariffs.

According to government sources Thursday, Korea Customs Service plan to investigate the alleged violations by Lotte Chilsung Beverage and Coca Cola regarding the country of origin requirement. The investigation will take place from mid-June to mid-July.  KCS will conduct product investigations of each company plus intensive overseas verification if their clarification is insufficient.  Violations will be subject to imposition of tariffs of 3 to 8 percent on imported values in addition to a penalty. The companies heavily rely on imports in raw materials such as sugar, fruit sugar and orange extract, and there is suspicion that they violated transit country requirements.  

Usually, processed food makers have to check the FTA country of origin requirement when they import products from an FTA country. But, those makers complain it is difficult to do so because Korea has as many as nine FTA partners and there are different criteria by product item.

<5/27/2013>Korean and Japanese Negotiators Unable to Reduce Differences over Fish Catch Limits [English, CSY]

http://www.koreaittimes.com/story/28783/korean-and-japanese-negotiators-unable-reduce-differences-over-fish-catch-limits

Summary: The Ministry of Oceans and Fisheries said on May 26 it held a second subcommittee meeting with the Japanese counterparts to determine the fish catch volume for the 2013 fishing season (July 2013 to June 2014). But the negotiations fell through because of differences in opinion. As for the fishing activity limits within the exclusive economic zone (EEZ), the Korean side proposed that the current level of 60,000 tons by 860 fishing boats be maintained while the Japanese negotiators insisted on cutting both figures by 25 percent.