Today's Date:  Monday, July 23, 2012

1. BILATERAL/MULTILATERAL ISSUES

Imports of American Agricultural Products Decline Since KORUS FTA [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/07/21/0301000000AKR20120721035800002.HTML?template=2087

Summary: Total imports of agricultural products from the U.S. during the second half this year amounted to $1.9 billion, down 16.8 percent compared to the same period last year despite the implementation of KORUS FTA on March 1.  Major products that led the overall import decline included beef (down 20.5 percent) and pork (down 35.8 percent).  However, some products, including soybean, cherries, and potatoes, showed strong import growth.  In particular, imports of American soybean in June amounted to 91 million tons, three times larger than June 2011.  Fresh cherries showed 80.2 percent import growth in the second half compared to the same period last year.

2. LIVESTOCK ISSUES

Farming, Livestock Products Get Safest Rating in 15 Years [English, CSY]

http://english.chosun.com/site/data/html_dir/2012/07/20/2012072001155.html

Full text: Agricultural and livestock products have garnered their highest safety ratings in 15 years.  In its annual inspection, the Ministry for Food, Agriculture, Forestry and Fisheries reported Thursday that the percentage of products rated unsuitable for sale due to contamination by pesticides or chemicals now stands at a mere 1.8 percent.   This is the first time unfit agricultural and livestock products have been in the 1-percent range since safety tests were initiated 15 years ago.  The inspection covered 77,000 items from Korea and abroad.

3. OTHER MISCELLANEOUS ISSUES

Price of Eggs Plunges due to Over Production [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/07/21/0318000000AKR20120721045000003.HTML

Summary: Price of eggs is reportedly on a sharp decline due to oversupply.  The ex-farm price of egg is 100 won this month, which is even below the cost 120 won), according to the Korea Poultry Association.  The number of birds kept in local egg farms is about 20 percent larger than pre-AI level.

Korea to Impose Heavier Penalties for False Advertising of Agricultural Products [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=133744&code=Ne2&category=2

Full text: Advertisers who exaggerate or fabricate the content of agricultural and fisheries products in Korea will be hit with heavier sentences starting next week.   In the past, violators had to pay fines up to 10 million won or roughly 9-thousand U.S. dollars but they were not given a criminal record.  But the nation's agriculture ministry said Friday that violators will soon be sentenced to up to 3 years behind bars or fined up to 27-thousand dollars and be given a blot on their rap sheet.  The Ministry explained the move is to improve the poorly managed tracking system.   The new rule will be implemented from Sunday.

Restaurant Price On a Rise [Korean, OSY]

http://economy.donga.com/3/01/20120720/47903291/4

Summary: It is reported that price of meals and products in restaurants have risen significantly since May this year.  Price increases were reported in a wide variety of products, including bakery, ice cream, buffet, and beverages.  For example, price of specialty donuts sold in Krispy Crème Donuts  rose 20 percent in May.  Restaurant companies claimed that soaring international ingredient price was the main cause of the price increase.