Today's Date:     Friday, February 03, 2012

1. BILATERAL/MULTILATERAL ISSUES

Head of Opposition Party, Myung Sook Han to send letter to President Obama on KORUS FTA [Korean: BYK]

http://www.fnnews.com/view?ra=Sent0801m_View&corp=fnnews&arcid=201202040100032280001222&cDateYear=2012&cDateMonth=02&cDateDay=03

Summary: Ms. Myung Sook Han of the leading opposition party stated that she would be sending a letter to President Obama and U.S. Congress asking them to suspend the implementation for the KORUS FTA and asking them to conduct a full review of the agreement.

Rice, sesame, garlic to be excluded from China FTA [English: YJY]

http://www.koreatimes.co.kr/www/news/biz/2012/02/123_104034.html

Summary: Rice, sesame, and garlic, all of which are ultra-sensitive, are expected to be excluded from FTA talks with China, which are set to start soon.  These three items are pivotal to food security and can severely influence farmers if negotiated otherwise.  Trade Minister Bark Tae-ho stated that negotiations will continue only after reaching agreements on ultra-sensitive products.

2. BIOTECHNOLOGY ISSUES

Genetically Modified produce cultivation and controversy [English: CJW]

http://www.nongmin.com/article/ar_detail.htm?ar_id=198398

Summary: Anxiety continues as GM crop development and cultivation is spreading.  There are more willing to embrace research and development of GM crops since Microsoft owner Bill Gates said “GM techniques are essential to tackle the growing food crisis.”  Korea will continue research on GM crop development for future food security.

3. ECONOMIC ISSUES

S. Korea's agriculture output to drop in 2012 [English: YJY]

http://english.yonhapnews.co.kr/business/2012/02/01/6/0501000000AEN20120201006200320F.HTML

Summary: Due to a drop in prices partly caused by KORUS FTA, output in agriculture and livestock industries is expected to drop slightly in 2012.  That will consequently lead to average income for each household strictly from farming dropping to KRW 11.03 million, 6.8% lower than 2011.  Total production in those industries is expected to reach around KRW 44.13 trillion, which is 1.1% lower than estimated last year.  KREI reported that agriculture output will decrease by an accumulated total of KRW 12.22 trillion over the next 15 years.

S. Korea's consumer prices grow 3.4% in January [English: YJY]

http://english.yonhapnews.co.kr/business/2012/02/01/8/0502000000AEN20120201001600320F.HTML

Summary: With the government putting in efforts to fight inflation, South Korea’s consumer prices grew at a slower pace in January.  The government expects improvement in 2012, forecasting consumer prices to grow 3.2% this year.  Among this increase, prices of agricultural, livestock and fishery products rose to 3.6% on-year in January.  The fresh food price index including vegetables and fruits also rose 6.2% compared to a month earlier.

Farming population falls below 3 million [English: YJY]

http://www.koreatimes.co.kr/www/news/biz/2012/02/123_104008.html

Summary: According to KREI, farming population was measured at around 2.96 million after just a decade since the figures fell below 4 million.  In 2011, farmers and their families took a portion of 5.9% of the national population, which was 0.2% lower than 2010.  This drop will become bigger, 5.1% in 2017 and 4.4% in 2022.  Interestingly, Korean baby boomers that were born in the ‘50s and ‘60s, are heading for the countryside to convert to full-time farmers as retirement draws close.

4. GRAIN & OILSEED ISSUES

Rice consumption declines to almost 70kg [Korean: CJW]

http://www.nongmin.com/article/ar_detail.htm?ar_id=198350

Summary: Declining trend in rice consumption per capita is speeding up.  Despite measures adopted by the government to increase the rice consumption, these measures proved weak.  According to the National Statistical Office (NSO), the rate decreased by 2.2% from 72.8kg in 2010 to 71.2kg in 2011.  The NSO official said “diversified substitutional foods and processed foods are mostly connected to declining rice consumption levels.”

5. MARKETING ISSUES

Dongwon F&B Launches Spaghetti Sauces in Partnership with McCormick [Korean, OSY]

http://www.asiae.co.kr/news/view.htm?sec=it99&idxno=2012020109410605558

Warren Buffett Owned Candy Store Lands in Korea [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012020168911&sid=0104&nid=004&ltype=1

Summary: See’s Candies, an American specialty candy company has opened its first store in Korea.  According to Hanstep, the local partner, See’s Candies plans to open additional stores in Korea this year, including special temporary outlets in major department stores targeting the upcoming Valentine’s Day.

Farm Population Dips Below 3 Million for the First Time [Korean, OSY]

http://www.asiae.co.kr/news/view.htm?idxno=2012020208255757205

Summary: According to a report by KREI, total population of farm households in Korea as of 2011 was 2.96 million, dipping below 3 million level for the first time.  People of 65 years old or older accounted for 36.2 percent of the farm population.

6. MIFAFF PRESS RELEASES

►  MIFAFF to establish ‘Pilot Plant’ at Korea National Food Cluster (FOODPOLIS) by 2015

►  MIFAFF Minister Seo Gyu-yong to receive briefing on 2012 plans from Korea forest service, National Forestry Cooperative Federation (NFCF)

►  Lee Sang-gil, first vice minister of food industry policy at MIFAFF to visit Nonghyup IT head office.

►  MIFAFF to hold a blood donating event

►  Rural community Assistance Corporation sits as a vital force in the rural community.

►  MIFAFF announced the invention of Multiplex PCR assay for the identification and differentiation of 10 Brucella species