Today's Date:      Monday, March 19, 2012

1. BILATERAL/MULTILATERAL ISSUES

 

Beef prices not expected to drop despite KORUS FTA [Korean: BYK]

http://news.donga.com/3/all/20120315/44803304/1

Summary: Although the KORUS FTA went into implementation on March 15^th, it will take some time before consumers begin to feel the impact of the FTA.  This is because the major hypermarkets have to sell off its inventory that was imported prior to the KORUS FTA and also because the price in the United States have gone up.  According to Emart, import prices for U.S. beef have gone up by 10 percent and as the shelf-life for chilled beef is 2 months and 1 year for frozen beef, the largest hypermarket plan to use up its inventory of beef that was imported prior to KORUS FTA first before releasing products coming in under lower duty.

 

Minister of Strategy and Finance to Audit Marketing Channels to Ensure the Impact of FTA is spread [Korean: BYK]

http://www.newspim.com/view.jsp?newsId=20120319000223

Summary: The Minister of Strategy and Finance stated that it would correct the problems in the marketing channels so that the general public can feel the effect of KORUS FTA.  He stated that the Ministry would audit the marketing channels to ensure the effect of KORUS FTA can be felt.

 

2. LIVESTOCK ISSUES

 

United States to allow import of European beef….pressure on Korea to increase [Korean: BYK]

http://www.hani.co.kr/arti/society/society_general/523752.html

Summary: John Clifford, CVO, USDA stated in an interview with media on March 9^th that the United States would move towards meeting the OIE guidelines for its import restriction for beef coming into the United States.  If this plan takes place, then, beef from U.K., Ireland and Netherland is expected to be exported to the United States.  Dr. Clifford explained that such plan was to push other countries to follow and allow for a full market opening for U.S. beef.  Korean experts interpreted this to mean that Korea would be included as one of the countries subject to the pressure.

 

Korea Pork Check-Off Program promotes discounts in Korean pork [Korean: BYK]

http://www.newstomato.com/ReadNews.aspx?no=233973

Summary: The Korea Pork Check-off program organization is carrying out sales of domestic pork products at Lotte Mart.  It is providing a 20 percent discount for domestic pork bellies and also giving out recipe books.

 

USTR Likely to Bring Korea to the Negotiation Table Soon for Reopening of the Market for Beef from Cattle 30 Months or Older [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012031618681&sid=01010402&nid=002&ltype=1

Summary: According to a USTR representative who attended a AMCHAM reception held on March 15 in the U.S. in celebration of the KORUS FTA, USTR plans to request Korea to start an official talk on the resumption of beef trade from cattle 30 months or older soon.  Korea is supposed to join the talk within 7 days once such request is made.  People in the industry forecast that the request for negotiation would be made after the National Assembly election in Korea in April.

 

3. MARKETING ISSUES

 

Koreans Consume 37 Million Cups of Coffee Everyday [Korean, OSY]

http://news.donga.com/Society/3/03/20120317/44834318/1

Summary: According to Korea Food & Drug Administration (KFDA), annual imports of coffee increased 8 times over the last 10 years.  Total imports of coffee in 2011 amounted to 123,000 metric tons ($668 million).  It is estimated that Koreans consumed 37 million cups of coffee everyday.  Vietnam was the leading exporter of coffee to Korea, followed by Brazil, Columbia, Honduras, and Indonesia.  In terms of processed coffee products, the United States was the leading exporter of coffee to Korea.

 

European Wine Companies Rush into China for ‘Made in China’ Wine Production [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012031833481&sid=010504&nid=005&ltype=1

Summary: Domaine Baron Roschild, a leading French wine company that owns some of the most famous wines in the world, is reportedly planning an expansion in wine production in China by adding 13 ha of vineyard to its existing 12 ha test vineyard.  Other well known international wine companies, including Torres, Spain and Moet Hennessey, France have also announced new investments into China for local wine making.  China is currently the world’s 5^th largest wine consumer in the world, but it relies heavily on imports for high quality products.

 

4. MIFAFF PRESS RELEASES

 

► MIFAFF tightens its border control of FMD due to the FMD outbreak in the Maritime Province of Siberia (Yunhaeju)

 

► National Seed Supply Service begins supplying rice seeds

 

► QIA to invite consumers to Yeongnam QIA office (located in Busan) to show how QIA is testing for radioactivity residues in imported Japanese fishery products

 

► MIFAFF provides explanation on major changes in agricultural policies due to implementation of KORUS FTA

 

► National Seed Supply Service to investigate illegal and inferior supply of seeds

 

► MIFAFF to conduct safety audit of places where culled animals had been buried

 

 

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”.