1. ECONOMIC ISSUES

Import Price of Agriculture, Livestock and Fishery Products on a Downturn for 3 Consecutive Months [Korean, LSH]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=001&aid=0006494576

Summary: According to Import Price Trend of August report presented by Korea Customs Service (KCS), the import price index for agriculture, livestock and fishery products decreased by 0.1% compared to corresponding date of last year. This downturn has been continuing since this June, widening the gap of downturn in each month.  Agricultural products price dropped 3.9% compared to last month except for cabbage, dried pepper and refrigerated garlic.  Price of meat and processed good also slightly decreased overall.  For fishery products, ups and downs varied greatly with each item.     

2. GRAIN & OILSEED ISSUES

Second Abundant Harvest this year puts spurs to opening rice market [Korean, LSH]

http://news.hankooki.com/lpage/economy/201309/h2013093003310421500.htm

Summary: Korean rice market had a bumper harvest this year, carrying the self-sufficiency rate to almost 100%. Ministry of Agriculture, Food, and Rural Affairs (MAFRA) reported that without any unexpected incidents, the rice yield will approach 530kg per 10 are, scoring second highest ever since it was statistically measured.  Following this situation, the government plans to accelerate opening of domestic rice market.  They say that we are currently accepting 400,000 tons of imported rice for not opening the market.  However, if domestic rice supply is sustainable enough, there is no reason to keep the market protected and take extra tons of rice in. They also emphasize that the competitiveness of Korean rice has been widely proven, not putting the industry at risk even if the market is liberalized.

3. LIVESTOCK ISSUES

A Meat Distributor Arrested for Faking Country of Origin Label on Pork Meat [Korean, OSY]

http://news.donga.com/3/all/20130925/57809580/1

Summary: Korean police arrested a meat distributor who faked the country of origin of pork meat that he supplied to local military restaurants.  According to the police, the distributor faked the COO label of imported pork meat from the U.S. and Canada to ‘local’.  Total volume of meat that he supplied with fake COO was 46 metric tons since September 2010.

Imported beef lost its strength in Korean Market? [Korean, LSH]

http://news.mk.co.kr/newsRead.php?year=2013&no=911582

Summary: The popularity of imported beef is on continuous downfall for 2~3 years.  Main reason behind this phenomenon is reduced import volume due to increased demand in Southeast Asia and China.  As Southeast Asian and Chinese market demands more beef import, it is getting harder to procure supply in Korea.  Also, oversupply of Hanwoo (Korean beef) production leading to cheap price attracts more customers to buy Hanwoo rather than imported beef.  According to U.S. Meat Export Federation (USMEF) Korea office, this year’s (from January to August) U.S beef sales had decreased by 11.7%.

MAFRA applies to OIE for BSE Negligible Risk Status [Korean, LSH]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=001&aid=0006502194

Summary: The Ministry of Agriculture, Food, and Rural Affairs (MAFRA) reported that they will try to attain the status of BSE Negligible Risk (the highest) from the OIE next May.  Ever since Korea gained the status of Controlled Risk (the second highest) in 2010, government has been conducting strict surveillance over feedstuffs and even formed taskforce to ensure safety from BSE.  The government says that if Korea succeeds in attaining the status, Korea’s preventative measure against BSE will be globally recognized and this will contribute to beef export market.  Moreover, they emphasize that even after they gained the status, they will continuously strive hard to prevent BSE.  

U.S. beef disguised as Australian beef for six years [Korean, LSH]

http://www.nocutnews.co.kr/Show.asp?IDX=2628787

Summary: It was detected that 451 tons of U.S. beef was disguised as Australian beef for the sale in market for the last six years.  According to data submitted to a Democratic lawmaker Park Ju Sun, 451.1 tons of U.S. beef was disguised in the market and 359.8 tons of Australian beef and 185.2 tons of New Zealand beef was disguised as Hanwoo (Korean beef) as well. This data depicts that Korean citizens are still distrusting U.S. beef in terms of food safety and still holds fear of possible outbreak of mad cow disease. The government will impose stricter crackdown on country-of-origin in reaction to improve the situation and relieve citizens.

<Policy Briefing> Hanwoo Industry Finds its Way to Restore Stability [Korean, LSH]

http://www.korea.kr/policy/actuallyView.do?newsId=148767737&call_from=naver_news

Summary: Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced that they have implemented several measures to stabilize Hanwoo industry which have been suffering from decrease in cow price.  For instance, they reduced the number of cows and decided to provide compensation for stabilizing calf population. They also reported that even with KORUS FTA in effect, there had been no notable changes in import volume of U.S. beef.  In fact, the import actually decreased by small amount, while domestic consumption slightly increased compared to last year. The government expects that increasing consumption and government assistances for Hanwoo farm will maintain the desirable domestic price and therefore stabilize the Hanwoo industry.   

Imported Beef Replaces Hanwoo in Military Catering Program [Korean, LSH]

http://www.nongmin.com/article/ar_detail.htm?ar_id=223213&subMenu=articletotal

Summary: It is reported that imported beef will replace Hanwoo in army supply if the MAFRA’s budget for Hanwoo supply for the army remains deducted.  In order to replace imported beef with Hanwoo, the government must spend 16.3 billion won.  However, as a member of Democrat Party, Park Min Soo detected that budget for Hanwoo in army provision in 2014 was eliminated; the army should keep taking imported beef for their meal supply instead of Hanwoo. 

4. MARKETING ISSUES

Salmon Only Shows Strong Sales Growth while Fishery Segment In General Reports Poor Sales [Korean, OSY]

http://news.donga.com/3/all/20130925/57833947/1

Summary: Partly due to the consumer’s safety concern on radioactive contamination, sales of salmon continues a strong growth in local retail stores.  According to Lotte Mart, sales of salmon during the first 9 months this year increased 28 percent compared to the same period last year.  Korean consumers in general assume that salmon, mainly supplied from safe seas in northern Europe, Chile and Alaska, is safe from the radioactive risk of Japanese nuclear accident.  Meanwhile, sales of other fish showed drastic decline in local stores as these fish was assumed to be caught in seas nearer from Japan.  For example, Lotte Mart reported that sales of pacific pollack, mackerel, and hair tail declined by 66%, 31%, and 12 percent respectively in September.

Price of Local Fresh Grapes This Season is 40 Percent Cheaper than Last Year’s due to Good Harvest [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013092622611

Summary: Average price of local grapes sold in Garak Wholesale Market on September 26 was 12,811 won per 1 kilogram, which was 40.2 percent lower than the price of last year.  Marketers point out that good weather this year has generated good harvest of local grapes.

5. OTHER MISCELLANEOUS ISSUES

President Park Emphasizes that Agricultural Sector Can Become the Core Industry of Creative Economy [Korean: LSH]

http://joongang.joins.com/article/005/12688005.html?ctg=

Summary: Yesterday, President Park Geun Hye attended the Trade Investment Promotion Conference to encourage active engagement in opening agricultural market, especially through the Korea-China FTA.  She referred to an old saying that there is nothing set in stone.  She emphasized that if it is well grafted with high technology, agriculture can be developed into the core industry of creative economy and become the main driving force for improving the Korean export industry.  She pointed out that people have a stereotype that the agricultural industry has to be protected against market liberalization under whatever condition.  We need to do away with such a defensive stance.  She also added that if the Korea-China FTA is signed, more of Korea’s reliable products can enter China’s massive middle-class market and bring about new opportunities.

 Korean Agricultural Exports to U.S. (Los Angeles) Earns over One Hundred Million Dollars [Korean, LSH]

http://news.hankooki.com/lpage/society/201310/h2013100114495821950.htm

Summary: Gyeong Sang Province of Korea agricultural export to LA is estimated successful.  In fact, the outcome was better than expected, successfully signing contracts with value over one hundred million dollars.  Strategy to diversify products combined with reliability of the products prevalent in the market contributed greatly to success.  Especially, preferences of Korean agricultural product over Japanese product showed drastic increase. The rising export of agricultural product is expected to invigorate Korean agricultural industry by creating new jobs and added values as well.