Today's Date:   Monday March 10, 2014

For Coverage:   March 01 ~ 10, 2014

1. BILATERAL/MULTILATERAL ISSUES

Korea Will Not Participate in TPP if Member Countries Request Elimination of Rice Tariffication [Korean, KSY]

http://www.asiatoday.co.kr/view.php?key=20140309010004235

SUMMARY:  Dong-phil Lee, Minister of Agriculture, Food, and Rural Affairs (MAFRA), recently implied that Korea will open its rice market with high tariffication.  Some worry about the Trans-Pacific Partnership (TPP) that the negotiation will force the tariff on rice to be eliminated.  However, Deok-ho Kim, head of the International Cooperation Bureau of MAFRA, emphasized that none of the free trade agreements include concession of rice and TPP will not be an exception.  He also assured that Korea has no justifiable reason to join the TPP if the member countries request elimination of rice tariffication.

2. BIOTECHNOLOGY ISSUES

KCA Demands for Compulsory Labeling of All GMO Products [Korean, KSY]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201403051549131&code=920401

SUMMARY:  Korea Consumer Agency (KCA) requested the Ministry of Food and Drug Safety (MFDS) to make labeling of any products that contain genetically modified organisms (GMO) mandatory.  Korea is the second biggest importer of GMOs, which are mostly used to make cooking oil, soy sauce, and starch sugar.  However, the duty to indicate GMO is exempted if modified DNA or protein is not observed in these processed foods under the existing regulation.  KCA insists that consumer's rights to know and choose are being limited because of this.  Recently, KCA tested another method of identifying GMO by analyzing fatty acid content not modified DNA or protein.  The research discovered fatty acid that can only be found in GMO from one canola oil product, and advised to recall.  KCA urged to revise the regulation of GMO product to label the usage of any GMOs even though modified DNA or protein is not detected.  The agency also added that all the GMOs that can be distributed should be subjected to labeling.

3. ECONOMIC ISSUES

Size of Agricultural Land in Korea Shrank 1.1% in 2013 [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=229240&page=undefined

SUMMARY:  "Result of Agricultural Land Research through Remote Sensing 2013" by National Statistics Office revealed that the farming area shrank 1.1% to 1.71 million hectare last year.    The total cultivable land increased 63,800ha under the land development and reclamation projects, but decreased 82,300ha due to construction and installation of public facilities, decreasing 18,546ha in total.  The size of rice paddy decreased 0.2% to 0.96 million hectare, and the size of fields decreased 2.1% to 0.75 million hectare.  Plans to accomplish 30% self-sufficiency rate of grain seems daunting with this gradual decrease.  To achieve this goal, Ministry of Agriculture, Food, and Rural Affairs (MAFRA) will prevent conversion of superior farmland and restore idle farmland, while experts are advising MAFRA to efficiently utilize the existing farmland.

4. GRAIN & OILSEED ISSUES

Korean Farmers not Happy with Government’s Decision to Open the Rice Market [Korean, KSY]

http://www.kyeonggi.com/news/articleView.html?idxno=744677

SUMMARY:  Korean government's implication to open the rice market has aroused an immediate opposition of farmer groups.  Some farmer groups claims that the government is already waving the white flag even without an attempt to negotiate.  Korean Peasants League asserts that the government abandoned its duty to secure agriculture and tries to deceive farmers by mentioning high tariffs.  They insist that high tariff is just an empty shell since it can be incapacitated by Free Trade Agreements and Trans-Pacific Partnership.  Farmers' Committee of the Unified Progressive Party also criticized the government by claiming that market opening is an unpatriotic act that forsakes food sovereignty and drives the farmers over the edge.  However, other farmers are concerned about the reverse effects that not opening the market can bring.  Korea Rice Pro-Farmer Federation argues that opening the trade is the right thing to do as the income of rice farmer has been declining.  They worry that the suspension of tariffication can backfire by increasing the volume of obligatory rice import, as seen in the case of the Philippines.

Minister Lee of MAFRA Implies Opening of the Rice Market [Korean, KSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014030386061

SUMMARY:  Lee Dong-phil, Minister of Agriculture, Food and Rural Affairs (MAFRA), implied that Korean government will open its rice market.  The size of obligatory rice import grew 20,000 tons each year from 205,000 tons in 2004 to 408,700 tons in 2014.  This amount is equivalent to 7.97% of the domestic rice production.  Minister Lee announced that since the Korean government has to notify the World Trade Organization (WTO) by this September, it will decide whether to open the rice market by this June.  He said that the opposition parties and farmer groups all agree on not enlarging the volume of compulsory import anymore.  However, there are hardly any methods to prevent this without opening the market.  The minister also added that the government should have opened the rice market 10 years ago.

MAFRA to Decide Whether to Open the Rice Market by June [Korean, KSY]

http://news.hankooki.com/lpage/economy/201403/h2014030321202221500.htm

SUMMARY:  Ministry of Agriculture, Food and Rural Affairs (MAFRA, Minister Lee Dong-phil)) announced that the Korean government will decide whether to open the rice market by June.  MAFRA believes that rice tariffication is inevitable at this point.  As a member country of the World Trade Organization (WTO), Korea has to increase the obligatory import volume in order to postpone rice tariffication.  However, as rice supply already exceeds the consumption, increasing the obligatory import will only burden the national economy.  Anticipating the tariff equivalent (TE) at around 400 % according to TE calculation defined by WTO rule, many experts assert that Korean rice will have an advantage over foreign rice even with the tariff level above 200%, since price of Korean rice is about 2.5 times that of foreign rice in 2013, declined from more than 4 times in 2004.  Minister Lee said that the crucial issue of opening the rice market will be the level of tariffs, which should be accepted by the member countries of WTO.  He would like to determine the tariff level that WTO can also agree upon, which he assumes will be around 300~500%.

[Opinion] Opening the Rice Market is not a ‘Liability of International Law’ (Lee Hae-Young, Professor of International Relations at the Hanshin University) [Korean, KSY]

http://news.chosun.com/site/data/html_dir/2014/03/02/2014030202447.html

SUMMARY:  Controversy over opening the rice market is arising.  One of the opinions that hurt the farmers is that opening the market after 2015 is a ‘liability of international law’.  It insists that not performing this ‘duty’ is a ‘violation’ of WTO agreement, and Korea will be subjected to ‘billion dollars of vengeance’.  However, this is incorrect.  According to the third clause of Annex 5 from WTO’s Agreement on Agriculture, the special treatment (in this case, suspension of tariffication) is a result of a negotiation, not something that is set from the start.  Therefore, not opening the trade is not a violation of legal obligation.  Also, according to the fourth clause, the special treatment can be prolonged if one can ‘confer additional and acceptable concessions’.  Therefore, negotiation on postponing rice tariffication is legitimate and should be started promptly.  Moreover, the decision should be made based on balancing the ‘additional and acceptable concessions’ and the risks and cost of opening the market.  Domestic negotiation with the interested parties, including the farmers, should be done in prior.

Another concerning assertion is that the rice market can be secured with 500% tariff.  However, this argument seems to be leaving out the fact that Korea-China FTA and TPP talks are underway.  Any form of tariffs cannot work as a permanent protection.  The cost to defend the rice tariffication will also be enormous.  Thus, what Korea should do immediately is to commence the negotiation.

5. LIVESTOCK ISSUES

First AI Outbreak in Gyeongbuk [Korean, KSY]

http://news.donga.com/3/all/20140310/61561927/1

SUMMARY:  First avian influenza (AI) broke out in Hui-mang farms in Gyeongju, Gyeongbuk. 23,774 chickens from this farm were culled.  Disease control team will also cull 527,000 chickens raised in 27 farms nearby.  The outbreak is caused by chickens brought from Pyeongtaek, which is an AI-stricken area.  The farm in Gyeongju did not notify the government because the Pyeongtaek farm had the certificate of clinical examination which approves transfer of livestock.  A disease control authority said that investigation on the issuance of the certificate is underway.  The authority added that the government is planning on implementing a secondary declaration when a farm brings livestock from other areas.

Moving Excretion Blamed for Causing AI Outbreak in Layer Chickens [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=229371&page=undefined

SUMMARY:  Nonghyup assumes that moving livestock excretion caused avian influenza (AI) outbreak in layer chickens.  On the contrary to the feed trucks, the vehicles that carry excretion are not sterilized thoroughly.  Therefore, Nonghyup requested a proper disposal of livestock excretion.  According to the codes of practice, livestock excretion from contaminated farms must be buried within the farm.  Especially, poultry farms must ban any vehicles that visited other farms from entering. Only the excretion collecting trucks with the certificate of disinfection issued by the local government can be allowed.  Even those vehicles need to be sterilized again before entering the farm.

AI diagnosed in Cheongwon, Chungbuk [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/03/06/0200000000AKR20140306045400064.HTML

SUMMARY:  A duck farm in Cheongwon, Chungbuk was diagnosed with H5N8 avian influenza (AI).  It is the first time that AI virus was detected outside of Jincheon and Eumseong in Chungbuk area.  An epidemiological inspection showed that the vehicles from a poultry manufacturer located in Eumseong visited the farm several times.  The Chungbuk local government sent a disease control team to cull 19,400 ducks in this farm and two other farms situated less than 500m away.

Price of Beef to Rise in 2014 [Korean, KSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014030423211

SUMMARY:  The price of beef is rising because of the decreased production in Australia and the United States.  According to Nonghyup Economic Research Institute (NHERI), the volume of beef import this January was 31,400 tons, an 8.0% fall compared to last year.  The price increased 13.7% from US$ 5,057 per ton to US$ 5,748 per ton.  The price of Hanwoo also soared 13.7% to 14,966 won per kilogram.  Korea Rural Economic Institute predicted that average Hanwoo price will be 13,420 won, increasing 5.3% from last year.  The price upsurge is expected to last throughout the year as the amount of beef import continues to decline.  NHERI anticipates a decrease in beef import from Australia and the United States, 7.3% and 9.6% respectively.  Jae-hong Park, a vice-researcher in NHERI explained that Australia has been influenced by a drought since late 2012 while the number of calves decreased in the United States.

National Institute of Animal Science in Cheonan, Chungnam Diagnosed with AI [Korean, KSY]

http://news.sbs.co.kr/section_news/news_read.jsp?news_id=N1002274171

SUMMARY: National Institute of Animal Science (NIAS) in Cheonan, Chungnam was also diagnosed with H5N8 avian influenza.  This institute is less than 3km away from another farm diagnosed with HPAI in Pyeongtaek, Gyeonggi.  12,000 chickens and 6,400 ducks kept in this institute for gene conservation are subjected to culling.  The total of 6.59 million poultry has been culled until today, the 46^th day since the initial outbreak.

6. MARKETING ISSUES

CJ, Overseas Sales of Feeds Exceeds 1 trillion won [Korean, KSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014030424111

SUMMARY:  CJ CheilJedang will develop feeds business as its global growth engine, especially targeting toward Asia.  CJ will begin to produce ‘MilkGen’, a feed that accelerates milk production.  Later this year, it will commercialize ‘Eco-Friendly Green Feeds’ that reduces the methane gas.  Suk-woo Ji, head of the CJ research center, said CJ will preemptively respond to globally growing demand for eco-friendly feeds. The sales of CJ feeds last year were 1.55 trillion won, and almost 67% (1.04 million won) were made overseas.  The overseas sales surged over 70% in 3 years.  Mr. Ji added that the increasing meat consumption in China has boosted the growth of feeds market by 5~10% each year.  CJ has R&D centers and 18 production bases in China and Vietnam.

7. OTHER MISCELLANEOUS ISSUES

Hallabong Cheaper than Orange [Korean, KSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014022648151

SUMMARY: The price of 'luxury fruit' Hallabong (a late variety of Jeju tangerine) became cheaper than orange for the first time. A Hallabong is sold at 1,100 won and an orange at 1,127 won (both 240-260g size).  The price of Hallabong has been falling each year due to an increase in the number of farms.  On the other hand, the price of orange soared 30% because of the bad harvest owing to an abnormal cold wave in California.

Chinese Agricultural Production Affected by Smog [Korean, KSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014022645901

SUMMARY: A research has shown that the smog in China might affect agricultural production.  He Dongxian, the professor of China Agricultural University's College of Water Resources and Civil Engineering, said a recent experiment in Beijing showed that the photosynthesis process has slowed down.  The professor explains that the air pollution has blanketed the plants from sunlight.  He insisted that Chinese agricultural production can be deteriorated by the smog.  Some farmers are using plant hormones to stimulate growth.  Professor He warned that China will face a serious shortage of food supply if the pollution worsens.

8. MAFRA PRESS RELEASES

MAFRA to Improve Regulation on Country of Origin Indication [Korean, KSY]

http://www.mafra.go.kr/list.jsp?&newsid=155445427&section_id=b_sec_1&pageNo=