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Food News Clipping

May 15, 2015

2014.06.10

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date:   Thursday May 15, 2014

For Coverage:   May 01 ~ 15, 2014

 

 

1. BILATERAL/MULTILATERAL ISSUES

 

<5/13/2014> Free trade pacts boost fruit imports: data [English, CSY]

http://www.koreaherald.com/view.php?ud=20140513001250

Full text: Both the volume and diversity of Korea¡¯s imported fruits have grown in the past decade since the country first began signing free trade agreements in 2003, the Korea Customs Service said Tuesday. A trend analysis revealed that Korea¡¯s fruit imports have increased 3.3 times in terms of value and 1.5 times in quantity.  Korea imported $286 million worth of fruits in 2003 and $929 million last year, an average annual growth of 12.5 percent.  The United States has remained Korea¡¯s largest fruit source since 2012 when it provided 37.9 percent of Korea¡¯s imports, while the Association of Southeast Asian Nations was close behind with 35.5 percent, followed by Chile with 17.6 percent and Peru with 1.6 percent.

 

Imports from FTA nations accounted for over 90 percent of Korea¡¯s total imported fruits, according to the KCS. Most of the imports were tropical fruits that can¡¯t be grown locally such as oranges, bananas, kiwis and pineapples.  In 2003, the biggest fruit imports were oranges at 39.4 percent and bananas in second place at 31.8 percent, but the trend has turned, with bananas coming out on top at 27.3 percent last year, followed by oranges at 21 percent.  Grape imports also grew a considerable amount from 7.5 percent in 2003 to 20.3 percent in 2013.  Moreover, with the rise in imports of lemons, mangos, grapefruits and other fruit, the selection is proving to be more diversified.  Meanwhile, Korea¡¯s fruit exports in 2013 amounted to $120 million, which is 2.2 times more than 10 years ago ¡ª primarily due to larger exports of strawberries and persimmons, the KCS said.

 

"Korea Is Ready to Fulfill TPP's High Requirement Level" [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=231576&page=undefined

SUMMARY:  Kyung-lim Choi, Assistant Deputy Minister of Agriculture, Food, and Rural Affairs, announced that he had second preliminary talks with six of TPP member countries (the United States, Canada, Peru, Chile, Singapore, and Malaysia) from April 3rd to 13th.  He said that he conveyed Korea's readiness to fulfill high requirement level, and the member countries showed interest in when and how Korea will participate in TPP.  He added that Korea needs additional negotiations with some countries, including the United States.

 

2. BIOTECHNOLOGY ISSUES

 

Second Korea-US Organic Equivalency Agreement Negotiation [Korean, KSY]

http://news1.kr/articles/1665000

SUMMARY:  National Agricultural Products Quality Management Service (NAQS) announced that the second round of negotiation on Korea-US Organic Equivalency Agreement will be held on the 9th.  In the first negotiation, two countries confirmed that organic labeling systems in both countries accord with CODEX/IFOAM, but showed difference in some regulations.  NAQS attempts to resolve differences, while minimizing Korean consumers' main concerns such as GMOs.

 

3. GRAIN & OILSEED ISSUES

 

45 Farmer and Civil Groups Urge the Government to Cease Rice Market Opening to Protect Food Sovereignty [Korean, KSY]

http://www.idomin.com/news/articleView.html?idxno=445773

SUMMARY:  The headquarters of Nationwide Movement for Food Sovereignty and Food Safety, which includes 45 farmer and civil groups, issued a joint statement on the 29th that demanded the Korean government to end opening of the rice market and protect food sovereignty and food safety.  They accused the government of being lethargic and hasty with rice market opening.  They criticized that the government is not even attempting to negotiate with WTO member countries because it regards rice tariffication as a fait accompli.  They insist that losing food sovereignty is irreversible and it will cause more calamities to Korea.  In addition, the headquarters assert that opening the agricultural market has a negative influence on food safety.  They claim that the United States is pressuring Korea to lower trade barriers including country of origin and organic labeling issues.  However, they say, there are recurring food safety problems in imported agricultural products such as mad cow disease, detection of arsenic in US rice, detection of carcinogen in Chinese produce, and radioactive contamination of Japanese fishery products.  They insist that FTA and TPP negotiations have to be ceased in order to protect food safety.

 

The main requests are; suspension of rice market tariffication, embark on negotiations with WTO member countries for the status quo, discontinuation of organic equivalency agreement negotiations, regulation on food safety hazards such as GMO and radioactivity, and nonparticipation of FTA and TPP.  The headquarters will protest every Tuesday until their demands are accepted.  The first nationwide convention is scheduled on June 28th to show the power of citizens.

 

4. LIVESTOCK ISSUES

 

<5/13/2014> The Mystery of High Pork Belly Price in the Face of Supply Glut [English, CSY]

http://koreabizwire.com/the-mystery-of-high-pork-belly-price-in-the-face-of-supply-glut/9995

Summary: The number of hogs slaughtered recently is higher than usual, with a large drop in the demand in the wake of the ferry incident that has depressed the meat consumption.  Still, the prices of pork belly are mysteriously at a record-high level.   According to the Ministry of Agriculture, Food, and Rural Affairs on May 11, the total number of pigs sent to the abattoirs in the month of April was 1,306,000, up 18.2 percent from the three-year April monthly average of 1,105,000.  Meanwhile, the average price of pork belly, the most preferred part by Koreans, during the month was 1,929 won per 100 grams, 16.2 percent higher than the three-year average of 1,661 won. In March, the price rise was 14.0 percent.

 

Until very recently, the major cause of the pork belly price rise had been attributed to the fewer number of pigs slaughtered as the spread of porcine epidemic diarrhea (PED) virus. According to an agriculture ministry official, however, the impact of PED has been negligible and the pork supply has been higher than usual.  Livestock industry officials said the unusually high prices for pork belly were largely because of the hoarding by meat retailers and butcher¡¯s shops in anticipation of a high demand in the summer months believing that the porcine epidemic diarrhea epidemic would continue.

 

HPAI Outbreak in Gangjin, Jeonnam [Korean, KSY]

http://www.newsis.com/ar_detail/view.html?ar_id=NISX20140508_0012904526&cID=10809&pID=10800

SUMMARY:  Highly pathogenic avian influenza (HPAI) broke out for the first time in two months in Jeonnam Province.  A duck farm in Gangjin was diagnosed with HPAI on May 6th.  A total of 35,000 ducks from the farm is being culled.  Fortunately, there are no poultry farms within 3 kilometers.

 

Suspected AI Report from Gongju, Chungnam [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/05/08/0200000000AKR20140508159700063.HTML

SUMMARY:  A suspected avian influenza (AI) report was filed on May 8th in a layer chicken farm in Gongju, Chungnam.  Two chickens showed AI positive in a brief test.  Samples were sent to Animal and Plant Quarantine Agency (QIA) for a thorough inspection.  There are 60,000 chickens raised in this farm.

 

Traceability System for Infant Formula Milk Powder to Be Implemented [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/05/07/0200000000AKR20140507077800017.HTML

SUMMARY:  The production traceability system for processed livestock products including infant formula milk powder will become obligatory from December 2015.  The traceability system will allow consumers to check information such as the name of the producer, production date, expiry date, and distribution process.  The targeted products and manufacturers are to be designated by the Ordinance of the Prime Minister.

 

Hong Kong to Completely Ban Korean Poultry Import [Korean, KSY]

http://www.newsis.com/ar_detail/view.html?ar_id=NISX20140508_0012902981&cID=10102&pID=10100

SUMMARY:  Hong Kong Centre for Food Safety announced on the 7th that it will completely ban poultry import from South Korea due to ongoing avian influenza outbreak.  The prohibition will immediately take effect.

 

Worst Case of AI May Be Terminated in Early June at the Soonest [Korean, KSY]

http://www.edaily.co.kr/news/NewsRead.edy?SCD=JA11&newsid=01148006606085312&DCD=A00101&OutLnkChk=Y

SUMMARY:  The ongoing H5N8 type avian influenza (AI) outbreak is expected to be terminated in early June at the soonest.  The Ministry of Agriculture, Food, and Rural Affairs (MAFRA) predicted that any additional outbreaks are unlikely, since the Baikal Teals have moved northward and the weather is getting warmer.  The current AI outbreak has caused the worst damage of all AI outbreaks in Korea.  MAFRA announced that 12.85 million poultry were culled until May 2nd, and the estimated direct damage reached 200 billion won.  It is also the most widely spread AI, with outbreaks in 70 cities and districts.  Moreover, it will be recorded as the longest AI outbreak, if it continues next month.  The current AI outbreak has left Korea with a task to improve the disease control system.

 

Korea Expecting 'Country Free with Vaccination' Status from OIE [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=231612&page=undefined

SUMMARY:  Korea is expecting to receive 'FMD-free country with vaccination' status from the World Organization for Animal Health (OIE) this May.  Korea did not experience foot-and-mouth disease since April 21st 2011, and appropriate vaccination was completed following the OIE rules.  Once the status is achieved, the next step will be attaining 'FMD-free country free without vaccination' status after 2016 in order to export pork to the countries with ¡®FMD-free without vaccination¡¯ status.

 

AI Breaks Out Again in Icheon [Korean, KSY]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=102&oid=001&aid=0006889665

SUMMARY:  A quail farm in Icheon, Gyeonggi tested avian influenza (AI) positive in a symptom check.  This farm is 2 kilometers away from the chicken farm diagnosed with AI on April 22nd.  The local government initiated an emergency culling of 580,000 quails.

 

5. MARKETING ISSUES

 

EU is Likely to Designate Korea as IUU Fishing Country [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014050836991

Summary: According to the Ministry of Marine & Fishery (MMF), European Union (EU) is in a process to announce the final list of countries of Illegal, Unreported, Unregulated (IUU) fishing this year.  EU designated Korea in 2012 in the preliminary list of IUU fishing countries with a claim that Korean vessels had continued IUU fishing practices in Arctic and west African waters.  Korean government has been trying to avoid final IUU designation since the preliminary listing but the efforts have reportedly failed to achieve the goal.  A person in MMF commented that there is a high chance of Korea being confirmed as a IUU fishing country sometime this year.  The U.S. is scheduled to announce its IUU fishing country in 2015 so EU's ruling is likely to be repeated by the U.S.  IUU designated countries are subject to severe restrictions including banning of fishery exports to EU and no access to ports in EU.

 

6. OTHER MISCELLANEOUS ISSUES

 

<5/7/2014> Agricultural Product Export Market Expects Mixed Signals from Big Consumers [English, CSY]

http://www.koreaittimes.com/story/36736/agricultural-product-export-market-expects-mixed-signals-big-consumers

Summary: Korean agricultural product exporters are busy preparing plans ahead of the planned changes in import policy of major import markets, such as Japan, China and the U.S. in April and May.  Japan has been one of the most important export markets for Korean agricultural products, which has recently undergone a significant change - it raised its consumption tax from five percent to eight percent.  Meanwhile, export of food for traditional Korean dishes, such as chicken for Samkyetang, to the U.S. is slated to begin in full-scale. The USDA had announced that it will allow the import of processed poultry from Korea last March. According to the New York Branch of aT, the export of processed poultry to the U.S. is expected to be robust by this coming May 25, when sixty days elapse from the USDA announcement.

 

Duty Free US Cherries Attack Korean Fruits [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=231770&page=undefined

SUMMARY:  The US cherries are coming into Korean market, casting shadows on the Korean fruit market.  Cherry imports began earlier than usual, due to direct dealing with the US packing manufacturers.  The price of cherries in hyper markets dropped 27% to 2,200 won per 100 grams from a year ago because of a good harvest.  Also, cherries are benefitting from KORUS FTA.  Cherries have been imported duty free upon implementation of the agreement on March 2012.  According to Korea Customs Service, the total cherry import into Korea is predicted to exceed 10,000 tons this year.  The importing companies have hopes for an increase in the sales of cherries with their high popularity among the younger generation.  On the other hand, a sense of crisis is building up among Korean fruit producers.  The producers of mini tomatoes, Korean melons, and watermelons are concerned that imported cherries will take over the market.

  

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