1. GRAIN & OILSEED ISSUES

2011 rice production is estimated at 4.22 MMT, down 1.8 percent[Korea, CSC]

http://news.donga.com/3/all/20111010/40993457/1

2011 rice production is estimated at 4.22 MMT, down 1.8 percent from last year due mainly to acreage reduction of paddy field by 4.3 percent from last year. (Korean: CSC)

Milk price hike squashed by government[English, OSY]

‘We’ve been losing 250 million won every day since [Aug. 16].’

http://koreajoongangdaily.joinsmsn.com/news/article/html/656/2942656.html

Seoul Milk, the country’s biggest milk producer, made an insider decision to raise its white milk price about 10 percent from Oct. 16 citing the rising cost of raw materials, but it officially called off the decision.

Sources suggested the Ministry for Food, Agriculture, Forestry and Fisheries pressed Seoul Milk to withdraw its decision because the hike in milk price would raise prices of other products that use milk, including ready-to-drink coffee, flavored milk, baked goods and baby formula.

Yesterday morning, industry sources were quoted as saying by Yonhap News Agency that Seoul Milk plans to raise their milk price by 10 percent from Oct. 16. At local discount stores, the price for a liter of milk is now 2,150 won ($1.83). If the price hike happens, milk will go up to about 2,370 won per liter.

 

Cartons of Seoul Milk displayed at a local discount store. Seoul Milk, the nation’s largest dairy manufacturer, originally planned to raise its milk price by 10 percent due to the rising cost of raw milk, but it retracted its decision yesterday afternoon after facing mounting pressure from the government, which has pledged to tackle inflation. [YONHAP]

2. LIVESTOCK ISSUES

Seoul Dairy Cooperative to Raise Retail Milk Price by 10 Percent [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/10/10/0302000000AKR20111010182600003.HTML

Summary: Seoul Dairy Cooperative, the leading supplier of fluid milk in Korea, reported to local retailers that it would increase its supply price of fluid milk by 10 percent starting from October 16.  As a result, retail price of one liter package milk in retail stores would increase to 2,450 won.  Other milk suppliers are likely to follow with a similar price raise.