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한국 농식품 시장뉴스

March 28, 2011

2011.03.28

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date: March Monday 28, 2011

For Coverage: March 25 - 28, 2011

1. ECONOMIC ISSUES

Korea’s dangerous import dependence [English, CSY]

[SERI FOCUS] Only a few regions provide the bulk of the country’s commodities

http://joongangdaily.joins.com/article/view.asp?aid=2934000

Summary: Soaring international commodity prices due to shortages are increasing the overall price tag on Korea’s imports and exacerbating inflationary pressure. The rise in international commodity prices has contributed to 70 percent of the rise in import price in recent months. Moreover, the upward trend is not easing. In February, the contribution rate of agriculture, fishery and forestry products to the rise in import prices nearly doubled, rising to 9.4 percent from 4.8 percent in 2009. The climb in commodity prices is being reflected at the retail level. In January and February, consumer prices rose 4.1 percent and 4.5 percent year-on-year, respectively. February prices of agricultural, livestock and fishery products rose by 17.7 percent year-on-year with a 21.8 percent price jump in agricultural products being the main cause of the recent consumer price rise. In addition, prices of oil-based products are spiking. The prices of oil-based products jumped 12.8 percent year-on-year in February, a significant rise from the 3.4 percent year-on-year gain in September 2010.

Japanese funds return to S. Korean markets [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/28/0200000000AEN20110328000600320.HTML

Summary: SEOUL, March 28 (Yonhap) -- Japanese investors have been putting their money into the South Korean financial market even after Japan's devastating quake, data showed Monday, easing speculation that they may repatriate overseas assets to finance Japan's post-quake rehabilitation.

The 9.0-magnitude earthquake and ensuing tsunami hit the northeastern part of Japan on March 11, leaving more than 20,000 people dead or injured.

S. Korea's bad loans hit decade high: report [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/27/0200000000AEN20110327002500320.HTML

Summary: SEOUL, March 27 (Yonhap) -- Bad loans at South Korean banks and non-bank financial institutions hit a decade high last year, a report said Sunday, urging the government to map out a plan to manage them.

As of the end of 2010, distressed loans held by local financial institutions was larger than that for 2000, said the report by Hyundai Research Institute, without disclosing the exact amount.

Consumer sentiment hits 29-month low[English, OYS]

http://english.hani.co.kr/arti/english_edition/e_national/470054.html

Summary: South Korea’s consumer confidence plummeted to the lowest level in nearly two years due to skyrocketing domestic prices, instability in North Africa and the Middle East and continuing disasters in Japan.

The consumer sentiment index (CSI) was 98 in March, 7 points lower than the previous month, the Bank of Korea said Friday. This marked the first time since April 2009, when the index was also at 98, that the index fell below 100.

A reading below 100 indicates that there are more people who are confident of the economy than not.

Consumer price growth in March is forecast to exceed February’s 4.5 percent.

2. GRAIN & OILSEED ISSUES

Corn on the Cambodian cob suits Korean farmer [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2934014

3. LIVESTOCK ISSUES

FMD is over but milk remains in short supply [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2933973

Summary: Although the government on Thursday declared an end to the foot-and-mouth scourge and lowered the alert level for the disease that ravaged most of Korea’s countryside since November, the ripple effects continue to spread to consumers. In particular, the country’s in the middle of a milk crunch that’s only deepening. Dairy companies gave notice yesterday that they will cut distribution of milk products in a bid to cope with a shortage of raw milk supply. Seoul Milk, the nation’s largest dairy company with 40 percent of the market share, decided to cut distribution of its milk products by 10 percent starting today to large discount stores, supermarkets and convenience stores. Since it is the major supplier of milk to schools, Seoul Milk is expected to increase its retail cuts to 20 percent starting next month because it needs to set aside stocks for schools. According to the company, it needs more than 4 million tons of raw milk to provide 2.3 million 200-mililiter milk packs to schools.

Can "Foot-and-Mouth Disasters" Be Prevented with Policies Such as This? [English, CSY]

http://english.khan.co.kr/khan_art_view.html?artid=201103251402537&code=790101

S. Korea moves to contain bird flu as FMD comes under control [English, CSY, OYS]

http://english.yonhapnews.co.kr/business/2011/03/27/56/0501000000AEN20110327001200320F.HTML

Summary: South Korea is moving to stem future cases of bird flu as foot-and-mouth disease (FMD) outbreaks have been largely put under control, the government said Sunday. The farm ministry said it currently maintains poultry movement restrictions in 14 rural cities and counties across the country after quarantine authorities have had to cull 6.27 million birds on 269 farms since Dec. 29, when the first case of bird flu was reported. The ministry said such restrictions are needed because there has been a steady confirmation of bird flu outbreaks, with the last case taking place on Thursday at a chicken farm in Yeongcheon, 344 kilometers southeast of Seoul. The ministry said another chicken farm in the same county that raised 900 birds is being checked for the virulent strain of the avian influenza that can be transmitted to humans. There have been a total of 100 cases checked by authorities in the past three months, with 51 turning out positive for the H5N1 strain.

4. NORTH KOREA ISSUES

N.Korea in Urgent Request for Foot-and-Mouth Vaccine [English, CSY]

http://english.chosun.com/site/data/html_dir/2011/03/28/2011032800609.html

Full text: North Korea has urgently asked for donations of vaccine and other equipment needed to contain foot-and-mouth disease, the UN Food and Agriculture Organization said Thursday. An FAO delegation that just returned to Rome from a tour of the North confirmed widespread outbreaks in North Korea and veterinary services are in dire need of improvement. The FAO estimates that around US$1 million is required for training, supplies and infrastructure, vaccines and the setting up of monitoring, reporting and response systems. Foot-and-mouth has been reported in eight of North Korea's 13 cities and provinces. Farm animals are crucial to food supply in North Korea and many animals are dying, the FAO said, making chronic food shortages worse. Pyongyang announced last month that the disease dealt a heavy blow to the country since it broke out late last year.

British envoy says Pyongyang's markets well stocked with foods and products [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/27/0200000000AEN20110327001700315.HTML

Summary: SEOUL, March 27 (Yonhap) -- Martin Uden, Britain's ambassador to South Korea, said Sunday that markets in Pyongyang, the capital of North Korea, appear to be well stocked with reasonably large amounts of food, poultry and electronic products, despite the communist state's ongoing search for food aid abroad.

Uden, who traveled to Pyongyang and Wonsan, a port on North Korea's east coast, from March 11-14, said he witnessed plenty of chicken, fish and vegetables and an array of computer and camera accessories during his visit to the "Dong-il" market in the capital city

5. OTHER MISCELLANEOUS ISSUES

Consumers shun seafood on rising radiation concerns [English, CSY]

The price of whole pollack first jumps and now falls on worries

http://joongangdaily.joins.com/article/view.asp?aid=2934024

Summary: While Japan still struggles with radiation leaks from its crippled Fukushima Daiichi nuclear plant, Korean customers are avoiding some seafood out of fear they could be exposed to radiation. Local merchants and retailers say that this trend could spread to more seafood categories, crippling demand. The price of whole pollack, in particular, has been on a roller coaster since the earthquake in Japan. Last Friday, the price of high-quality whole pollack dropped to 30,000 won ($27) per box containing 10 to 12 kilograms, according to the Noryangjin Wholesale Fisheries Market. This came after the price spiked to 110,000 won on March 14, following the news of the earthquake but before the radiation leaks were known. Whole pollack was selling for 45,000 won per box on March 10, the day before the quake.

Soju exports to Japan rise after quake [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2934007

Summary: Exports of instant noodles and sugar to Japan rose sharply after a record earthquake hit the island nation earlier in the month, causing people and retailers to stock up on basic necessities, Korea’s Agriculture Ministry said yesterday. Cumulative shipments of instant noodles to Japan shot up 59.1 percent on-year between Jan. 1 and Wednesday as Japanese retailers asked for more products to meet a surge in consumer demand. That compares with a 51.7 percent increase in shipments between Jan. 1 and March 11, the day of the earthquake.

Exports of sugar, used in many processed food products, rose from 34.2 percent to 51.1 percent during the same period while there were also increases for soju and brown seaweed. Shipments of soju increased 8.6 percent on-year this year, but rose by 17.8 percent after the quake and the release of radioactive materials from the Fukushima nuclear power station, 250 kilometers northeast of Tokyo.

Most arrivals from Japan not checked for radiation: lawmaker [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/27/0200000000AEN20110327002300320.HTML

Summary: SEOUL, March 27 (Yonhap) -- Most people arriving in South Korea from Japan do not receive checks for radiation contamination that may pose health risks for the general public, an opposition lawmaker said Sunday.
South Korea has been operating "radiation detection gates" at all major airports with direct flights to Japan since March 17, but checkups are carried out on a voluntary basis.

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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