Today's Date:   Tuesday, October 16, 2012

1. GRAIN & OILSEED ISSUES

Rice Harvest This Year Likely to be a Record Low in 32 Years [Korean, OSY]

http://news.donga.com/3/all/20121015/50131339/1

Summary: According to a report by National Statistics Office on October 15, rice harvest this year was forecast to 4.07 million tons, down 3.5 percent from last year.  In other words, harvest this year would be the lowest level since 1980 or be on a continuous decline for 11 years since 2002.  Ministry of Agriculture explained that reduced harvest is mainly due to the typhoon damage in Junra province, the leading rice production area in Korea.

2013 Rice Production is expected to decline to 4.07 million metric tons, the lowest in 32 years (since 1980), down 3.5 % from the previous year.  

http://news.kbs.co.kr/economic/2012/10/16/2552042.html

Summary: Typhoons in a row last summer have hit Korean rice field located in west coast, making empty kernels of rice paddy by dry wind along with typhoons.  The damaged area has reached 110,000 hectare or 13 % of total paddy area, which was reduced by 0.5 % of last year.  

2. MARKETING ISSUES

Rising Popularity of Cocktail Drinks in Dancing Clubs Brings a Change of Hard Liquor Consumption in Korea [Korean, OSY]

http://news.donga.com/3/all/20121011/50046317/1

Summary: According to E Mart, the leading discount retail store chain in Korea, ‘Jagermeister’, a cocktail liquor from Germany, garnered the largest sales in whiskey section during January through September this year.  Other cocktail liquor including ‘London Gin’ and ‘Kalua’ also ranked among the top selling products in whiskey section.  Market analyst point out that on-going popularity of cocktail drinks in dancing clubs is likely to boost sales of related products in the market in the coming months.

Lotte Confectionery Co. Raises Price of 14 Products by an Average 9.4% [Korean, OSY]

http://news.donga.com/3/all/20121013/50073226/1

Summary: Lotte Confectionary Co. announced on October 12 that it would raise ex-factory price of 14 snack products by an average of 9.4 percent within this month.

E Mart Offers American Wine that It has Imported Directly [Korean, OSY]

http://news.donga.com/3/all/20121015/50131819/1

Summary: E Mart announced on October 15 that Southern Point, a California wine under the Wine Group that E Mart had imported directly from the winery started sales in the store.  Retail price of the wine was set at 7,900 won per bottle.  E Mart added that Southern Point would continue the success of G7 wine that E Mart also direct imported from Chile three years ago.  G7 wine sold over 1 million bottles over the last 3 years since launching.

Spending of Silver Population Arises … Younger Population Reduces Spending [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012101560611

Summary: According to a report by Shin Han Credit Card, silver population over 60 years showed the highest credit card spending increase (143%) over the last four years, followed by people in 50’s (98%), 40’s (51%), 30’s (26%), and under 30 years (minus 22%).  Shin Han Credit Card explained that silver population and people in 50’s were willingly increasing spending based on more stable economic foundation compared to other population groups.

3. OTHER MISCELLANEOUS ISSUES

FAO/UN Warns Possible Global Food Riots Next Year [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012101431261

Summary: Daily Guardian UK reported based on a FAO report on October 13 that reduced food supply would cause riots around the world next year.  The FAO report pointed out that world food inventory this year had fallen down to that can feed the world only for 74 days, a record low level since 1974 (107 days level in 2002).  The report forecasted that all major crops, except for rice, would show decreased harvest this year.  The report picked Middle East and Africa as the most likely region that would have food riots if food shortage continued.

Gov’t Warns Processed Food Companies that Increase of Retail Price based on Price Fixing would meet Strong Penalties [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012101561331

Summary: Jaewan Park, head of the Ministry of Finance and Strategy said in a cabinet meeting on the issue of consumer price stabilization on October 15 that the Government was keeping an eye on increase of retail price by processed food companies.  The minister stressed that any attention to increase the price based on price fixing practice would meet strong penalties under the regulation.