1. GRAIN & OILSEED ISSUES

<8/11/2013>Korean wheat production has decreased 2 years in a row (Korean, WMJ)

http://news.mk.co.kr/newsRead.php?year=2013&no=702930

Summary: The production of Korean wheat has been declining for 2 years due to deficient demand. The biggest reason why consumers look away from domestic wheat is high price and uncertain quality.  It is more expensive than American wheat, as much as two or three times higher. Most domestic farms are small, so it is difficult for them to maintain product quality and a steady supply.  In this situation, government is trying to increase the demand by letting contract feeding service operators use domestic wheat.  

2. LIVESTOCK ISSUES

<8/11/2013> U.S. pork has become popular in Korea market (Korean, WMJ)

http://www.fnnews.com/view?ra=Sent1001m_View&corp=fnnews&arcid=201308120100094380005446&cDateYear=2013&cDateMonth=08&cDateDay=11 

Summary: U.S. pork has been encroaching on the Korean pork market since KORUS FTA has implemented. U.S. pork recorded its market share as 40.1% and become number one in imported pork market in June 2013.  Especially U.S. chilled pork belly gained popularity in Korea.  On the other hand, the growth of American beef in Korea has slowed down.

3. MARKETING ISSUES

Chuseok (Korean Thanksgiving Day) Gifts This Year Reflect Sluggish Economy … Much are Offered for Under 30,000 Won [Korean, OSY]

http://news.donga.com/3/all/20130811/56965353/1

Summary: It is reported that the suppliers are focusing on products under 30,000 won each for upcoming Chuseok (Korean Thanksgiving Day) gift season.  For example, Cheiljedang, the leading consumer goods company in Korea has expanded gift product offerings under 30,000 won by more than 10 percent point from last year.  To avoid heavy traffic, retailers are also launching promotions on early gift delivery services.

Whiskey Sales Down by 13% in the First Half [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013081115451

Summary: According to the industry, sales of whiskey during the first half this year amounted to 910,000 cases, down 13.5 percent from the same period last year.  Leading brands, including Windsor by Diageo Korea and Imperial by Perno Ricard Korea, all reported around 10 to 20 percent of sales decline.

E Mart Launches ‘Canyon Road’, a California Wine at a Heavy Discounted Price through Direct Imports from the Winery [Korean, OSY]

http://news.donga.com/3/all/20130812/56987305/1

 

4. OTHER MISCELLANEOUS ISSUES

Korea government make ‘The day to eat rice noodle’ to promote the consumption of rice.  (Korean, WMJ)

http://www.nocutnews.co.kr/Show.asp?IDX=2583017

Summary: The Ministry of Agriculture, Food and Rural Affairs (MAFRA) decided to implement supporting business for feeding service with ‘The day to eat rice noodle’ as a main event once a month from August to November for promoting consumption of rice and replacing consumption of wheat food. The main point is to use rice noodle in feeding service instead of wheat noodle.  CJ freshway, MAFRA and Korea Rice Foodstuffs Association (KRFA) are the hosts for this event mainly.