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January 2011

2011.02.01

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

For Coverage:  January 2011

 
 
 

MOFAT states export to Chile increased by 4-folds after establishing FTA [Korean: BYK]

http://www.ktv.go.kr/ktv_contents.jsp?cid=365783

Summary: MOFAT refuted a news article that said the trade deficit with Chile increased after establishing an FTA.  MOFAT explained that the export to Chile increased from $517 mil. in 2003 to 2,229 mil. in 2009, an increase of over 4 times, since the Korea-Chile FTA went into effect in April 2004.  The import during the same period increased by about 3 times from $1,058 mil. to $3,103 mil.  However, 78.6 percent of the imports are raw ingredients, such as copper ore, etc.

 

Korean Assemblyman asks U.S. Congress to ratify the KORUS FTA first [Korean: BYK]

http://biz.heraldm.com/common/Detail.jsp?newsMLId=20110105000106

Summary: National Assemblyman Kyung Pil Nam, Chairman of the Foreign Affairs, Trade and Unification Committee, National Assembly (Grand National Party) met with Congresswoman Ileana Ros-Lehtinen (R) who will become the new Chair of the Committee on Foreign Affairs during Nam¡¯s visit to the United States.  Nam stated that Korea will ratify the KORUS FTA after the United States has ratified the FTA first.  The reason why Korea wants to see the United States ratify the FTA first is because Senator Max Baucus may try to raise the beef issue again.

 

President Obama to send KORUS FTA bill to Congress this month [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=

Summary: An article in the Wall Street Journal projected that President Obama will send the KORUS FTA bill to the Congress before the end of this month for ratification.  The KORUS FTA bill was modified through additional discussions last month.

 

Korean Ambassador Duk Soo Han thanks AFBF for supporting KORUS FTA [Korean: BYK]

http://www.seoul.co.kr/news/newsView.php?id=20110110008019

Summary: Korean Ambassador to the United States, Duk Soo Han, asks the United States to ratify the KORUS FTA bill by end of June, 2011.  He emphasized the need to ratify the KORUS FTA at an American Farm Bureau Federation (AFBF) meeting and also thanked members of AFBF for supporting the KORUIS FTA.  He explained that the U.S. agricultural sector will probably be the sector that benefits the most from KORUS FTA.

 

Obama likely to submit Korea FTA to Congress soon: Amb. Han [English CSY]

http://english.yonhapnews.co.kr/national/2011/01/09/17/030100

Summary: South Korean ambassador Han Duck-soo on Saturday expressed his expectations that the Obama administration will soon present the free trade deal with South Korea to Congress for its ratification by the end of June.  "I expect the Obama administration will submit the Korea-U.S. FTA to Congress sooner or later so Congress can approve it by the end of June," Han told a forum here hosted by the American Farm Bureau Federation (AFBF). "More than 900 American enterprises and business organizations support the Korea FTA, and we thank the AFBF and other agricultural organizations for their support."

 

Australian envoy hopes for conclusion of S. Korea FTA this year [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/19/0502000000

Summary: Australia's top envoy to Seoul expressed hope Wednesday that the two countries will conclude a bilateral free trade agreement (FTA) this year on their 50th anniversary since forging diplomatic ties. The two sides launched FTA negotiations in March 2009 and have since held five rounds of talks, focusing on agriculture, services, and autos, among other sectors.

 

Opposition resistance to FTA [English, CSY]

http://english.donga.com/srv/service.php3?biid=2011012469018

Summary:  In Korea, main opposition Democratic Party lawmaker Chun Jung-bae, fellow party member Rep. Lee Jong-gul and progressive Democratic Labor Party chief Kang Ki-kap expressed willingness to visit the U.S. to block ratification of the free trade deal with the U.S. Chung Hee-sung, vice chairman of the militant Korean Confederation of Trade Unions, Lee Kwang-seok, chairman of Korea Farmers¡¯ League, and Park Won-seok, secretary-general of the People¡¯s Solidarity for Participatory Democracy, are also set to go on the trip. They claim the agreement will worsen the quality of life for the majority of people in both countries and undermine the basis of economic growth. Japan and China, both of which do not want the pact to be implemented, will feel grateful to Koreans who oppose the deal.

 

Chun served as justice minister under the Roh Moo-hyun government, an administration that began negotiations for the agreement and concluded it in April 2007. Chun was minister in February 2006 when the Roh government announced the beginning of the negotiations and in June and July the same year when the first and second rounds of negotiations were carried out. Like Chun, Lee Jong-gul broke away from the Democratic Party and joined the Uri Party loyal to President Roh. Chun and Lee Jong-gul, who were called pro-Roh politicians, are poised to nullify one of the former president¡¯s few achievements. For his part, Kang, who became a lawmaker thanks to internal conflict within the ruling Grand National Party, is attempting to threaten national interests.

 

Editorial:  Anti-FTA Trip [English: BYK]

http://www.koreaherald.com/opinion/Detail.jsp?newsMLId

Summary:A group of opposition lawmakers left for Washington, D.C., Monday to stage a campaign against the Korea-U.S. free trade agreement which awaits ratification by the two countries¡¯ legislatures. They are accompanied by some members of the radical Minjunochong (Korean Confederation of Trade Unions), a farmers¡¯ association and a few other civic groups on the trip.

 

Shameful opposition to the FTA [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931394

Summary: After much meandering, the Korea-U.S. free trade agreement is heading toward its final ratification. On Jan. 25, the U.S. House of Representatives is scheduled to hold a hearing on the agreement. Both governments have so far tried to overcome their conflicts of interest to meet the demands of the industries involved.

At this critical moment, however, opposition Democratic Party lawmakers Chun Jung-bae and Lee Jong-kul and Democratic Labor Party lawmaker Kang Ki-kap are in the United States to stop the ratification of the FTA, together with representatives of the liberal Korean Confederation of Trade Unions and People¡¯s Solidarity for Participatory Democracy. They plan to meet with nongovernmental civic groups opposed to the FTA and will also visit House representatives to urge the congressmen to join them in their opposition to the trade pact.

 

European parliament passes trade safeguard act for EU-Korea FTA [English, CSY]

http://english.yonhapnews.co.kr/national/2011/01/26/73/030100

Summary: The European Parliament's trade committee passed an enactment bill that outlines the use of trade safeguards once a free trade agreement (FTA) with South Korea goes into effect, local sources said Wednesday.     Parliamentary insiders said the Committee on International Trade passed the bilateral safeguard act with no objections raised by those taking part in the vote.     A safeguard arrangement allows a country to temporarily raise duties if there is a significant surge in imports that can hurt local businesses.

 

S. Korea, U.S. to finalize FTA text soon [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/26/05020

Summary: South Korea and the U.S. will soon conclude work on the final text of their recently concluded free trade agreement (FTA), paving the way for the pact to be ratified in both countries, a high-ranking trade official said Wednesday.  In December last year, both countries reached a final agreement focusing on U.S. demands that South Korea soften its automotive safety and environmental standards.

 

Amcham head wants FTA approval  [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931580

Summary: Korea and the U.S. should push for an early ratification of their free trade agreement, Frank Little, the new chairman of the American Chamber of Commerce, said yesterday. The two nations reached an agreement on a revised trade pact in December and President Barack Obama suggested he would submit it shortly to the U.S. Congress when he made his State of the Union speech this week. Amcham will conduct lobbying in favor of the FTA when it conducts its annual meeting with U.S. lawmakers this spring. It also plans to host congressional delegations that are expected to visit Seoul this year.

 

Ruling party, gov't agree on early ratification of FTA with U.S. [English, CSY]

http://english.yonhapnews.co.kr/national/2011/01/27/58/03010

Summary: The government and the ruling party on Thursday agreed to discuss how to deal with motions for the ratification of South Korea's free trade agreements (FTAs) with the United States and the European Union as early as possible, a party spokeswoman said. South Korea and the U.S. await parliamentary ratification of two-way FTA after their trade ministers last December sealed the de-facto renegotiations of the deal originally signed three years ago under their previous administrations. Earlier in October, Seoul signed a separate FTA with the EU.

 

Korean Gov¡¯t Plans to Get both KORUS FTA and KOEU FTA Ratified within the First Half [Korean, OSY]

http://kr.news.yahoo.com/service/news/shellview.htm?articleid=

Summary: Korean government has come up with a plan that seeks ratification of both Korea-U.S. and Korea-EU Free Trade Agreement within the first half this year.  Korean Ministry of Foreign Affairs has forecasted that EU Assembly will ratify the FTA bill in February.  There was a government round table meeting among the policy makers from the ruling party, President¡¯s office, and related Korean Ministries on the FTA issue on Jan. 27.  The meeting has concluded that despite some barriers both in Korea and the U.S., there is strong potential for the FTA bill ratified both in Korea and the U.S. within the first half this year.

 

Obama likely to submit Korea FTA to Congress in March: report [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/31/13/050200

Summary: The Obama administration will likely submit the pending free trade deal with South Korea to Congress in late March after undergoing a series of congressional hearings next month, reports said Sunday.  U.S. Trade Representative Ron Kirk is expected to appear at hearings at the House Ways and Means Committee and the Senate Finance Committee in mid-February to "pave the way for a mock markup of the draft implementing bill sometime in March, and submission of the final implementing legislation soon thereafter, possibly in late March or April," online magazine World Trade Online said, citing informed sources.   Kirk earlier this month called on Congress to ratify the Korea FTA before a similar pact between South Korea and the European Union goes into effect in July.

 

Australia and Korea fete 50 years of ties and friendship [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931685

Summary: David Palmer, chairman of the Australia-Korea Foundation, expressed his hope for enhanced trade with Korea in the beef market.   ¡°Australian beef is very important to the Korean economy,¡± he said. ¡°We think Australian beef adds a complementary role to help provide a critical mass of beef protein to 45 million Korean consumers.¡±  At a press conference held at the Plaza Hotel, central Seoul, on Jan.19, the Australian ambassador said he hoped the Australian and Korean governments will sign a Free Trade Agreement within this year.  ¡°Although some sensitive issues still remain in the agriculture sector, I hope bilateral relations in trade will be developed by signing a Free Trade Agreement,¡± the ambassador said.  When it comes to cooperation with Korea in green energy policies, the embassy said research centers in Australia and Korea that study carbon capture and sequestration projects are expected to work together at the academic level.

 

 

None

 

3. Economic Issues

 

Consumer Price Index Up 2.9% in 2010 ¡¦ Fresh Produce Prices Up 21.3% [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2010/12/31/0318000

Summary: According to the government data, consumer price index went up 2.9 percent in 2010.  In particular, prices of fresh produce rose 21.3 percent in 2010.  Fresh agricultural products that showed largest price increase in 2010 include radish (98.1 percent), cabbage (80.8 percent), leeks (67.8 percent), garlic (52.1 percent), tomato (42.3 percent), and water melon (34.9 percent).

 

Prices of basic items set to increase [English, CSY]

Government mulling measures to keep inflation rate under short-term control

http://joongangdaily.joins.com/article/view.asp?aid=2930534

 

Summary: Consumers are rushing to buy products in anticipation of upcoming price hikes resulting from surging costs for raw materials. Nestle and Coca-Cola already raised the prices on some of their products at the start of the year. The former increased the price of its instant coffee by between 8 percent and 12 percent, while Coca-Cola raised beverage prices by between 4.2 percent and 8.6 percent. Biscuit producers, including Orion, are also considering increasing the prices of their products.

 

The government plans to unveil a set of anti-inflation policies next week. The policies are expected to include keeping public utility prices unchanged, preventing food prices from rising, increasing agricultural products supplies and cracking down on cartel activities.  According to the Ministry of Strategy and Finance, the vice ministers of economy-related ministries are going to convene a meeting today and finalize discussions on price policies before announcing them on Jan. 13.
 

 

Minister urges prudence in adopting carbon credit system [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/12/2/0501

Summary: South Korea needs to be cautious about adopting a carbon emission credit system as it could become a burden on people's everyday lives and industrial competitiveness, the commerce minister said Wednesday.  "There is a strong need to carefully consider its fallout before moving forward on this issue," Knowledge Economy Minister Choi Kyung-hwan said in a meeting with reporters.  A carbon credit system is a commercial arrangement that permits the trade of certificates or permits to be bought and sold so companies and organizations can release carbon or material equivalent to carbon dioxide into the atmosphere.  The minister said that implementing a nationwide carbon credit scheme could add a minimum burden of 3.6 trillion won (US$3.1 billion) on local economic actors.

He claimed that depending on different calculations, the overall burden may rise to 27 trillion won, which could seriously affect the national economy and competitiveness of local companies.  The minister's comments come as the environment ministry has been pushing to adopt the system as part of the country's voluntary pledge to cut back on greenhouse gas emissions that have been cited for global warming.

 

Officials unveil anti-inflation steps  [English, CSY]

Priority on freeze in public utility rates, increasing agricultural supplies

http://joongangdaily.joins.com/article/view.asp?aid=2930983

Summary: In an effort to stabilize consumer prices to help people like Park, the government announced measures to curb inflation. They include freezing public utility rates and tuition at state-run universities, reducing import tariffs on agricultural goods, and increasing the supply of farm goods and housing stock. The anti-inflation measures were drawn up by seven government ministries with the goal of tackling inflation at the top of their agenda for the first half of the year.  The government is in the process of reducing tariffs on staple food products, including sugar, cooking oil, corn, wheat, mackerel, milk powder and coffee beans as well as raw materials for detergents. It will increase the supplies of cabbage and garlic.

 

 

S. Korea's food prices jump in Nov.: report [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/07/46/050

Full Text: Food prices in South Korea grew faster than in many other major economies last November as rising oil and raw material prices pushed up costs, a report showed Friday. South Korea's food prices grew 11.2 percent in the cited month from a year earlier, the third-sharpest increase among member countries of the Organization for Economic Cooperation and Development (OECD), according to the organization's report. 

 

Turkey topped the list with a 12.4 percent increase, and Estonia came next at 11.7 percent. The price hike in South Korea was well over the OECD average increase of 1.7 percent.  Finance ministry officials attributed the hike to soaring oil and raw material prices. The latest data showed South Korea's consumer prices rose 2.9 percent last year, but fresh food prices jumped 21.3 percent. The Seoul government is to announce anti-inflation measures next week in a bid to keep prices under control ahead of the Lunar New Year holiday in early February.

 

[Viewpoint] Korea¡¯s inflationary challenges [English, CSY]

Even if the agricultural sector¡¯s effect on prices is contained, there is no guarantee high inflation will be absent.

http://joongangdaily.joins.com/article/view.asp?aid=2931612

Summary: Fears over inflation are deepening. Consumer prices rose 3.5 percent in December compared to a year ago, while producer prices increased 5.3 percent and import prices 12.7 percent. Driving up consumer prices were agricultural products, which leaped 26.5 percent on the back of a 33.8 percent surge in fresh produce prices. Among import prices, agricultural, forestry and fisheries product prices soared 30.8 percent.   Meanwhile, the agricultural sector is under mounting stress. Low harvest outlooks due to extreme weather plus rising demand from consumers in emerging economies are fanning concerns over food price inflation, or agflation.  According to the United Nations Food Association Organization, the fresh food price index, which has a bearing on Korean domestic prices, rose 32 percent in the second half of 2010. Rising raw material prices have spurred demand for bioenergy, leading to upward price pressure on corn, soybean oil and rapeseed oil, which are needed to produce bioethanol and biodiesel.  Another source of imported inflation is coming from China, Korea¡¯s biggest trade partner. Chinese products, 16.9 percent of Korean imports, are arriving with higher price tags, which are passed on to consumers.

 

Prices soar, defying government¡¯s recent anti-inflation measures [English, CSY]

http://www.koreaherald.com/national/Detail.jsp?newsMLId=

Summary: Consumer price hikes are showing no signs of let-up, two weeks after the government embarked on a sweeping campaign to fight inflation.  Crop damage from extreme weather conditions combined with the country¡¯s worst animal disease outbreak sent food prices to record high levels, hurting low-and middle-income households preparing for the Lunar New Year holiday this week.  Pork prices jumped more than 28 percent from a year ago after more than three million cattle and pigs were slaughtered since the Nov. 28 breakout of foot-and-mouth disease.

 
 

S. Korea poised to set up grain firm in U.S. [English CSY]

http://english.yonhapnews.co.kr/business/2011/01/10/47/0501

Summary: South Korea plans to set up a U.S.-based international grain procurement company as part of an effort to help stabilize food prices, the government said Monday.  The plan by the finance and farm ministries calls for establishing a joint company with the private sector in Chicago that can diversify the country's grain procurement routes currently controlled by a few multinationals, such as Cargill and ADM.  The government said that even if a new grain handling company is set up, the goal will be to handle about 20-30 percent of local demand in the next 10 years. For 2011, the company may be able to import about 50,000 tons of grain, with numbers to be increased gradually.

 

Korea to set up company to buy grain [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930812

Summary: The government plans to set up a U.S.-based grain trading company to secure supplies and stabilize food prices. The government hopes that the company, which would be established with the private sector, will help Korea reduce its grain procurement from international commodity trading giants such as Cargill and Archer Daniels Midland.  The recent spike in agricultural food prices has underscored Korea¡¯s vulnerability to imports of some food products, including wheat, beans, corn and barley. The Ministry of Strategy and Finance and the Ministry for Food, Agriculture, Forestry and Fisheries will include the plan in a set of anti-inflation measures that will be announced on Thursday.

 

Use of Rice by Local Food Processors Shows a Significant Increase [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/24/031800

Summary: Rice consumption by the local food processors has increased significantly in the last several months due to introductions of more products that incorporate rice.  Industry contacts commented that because consumers in general perceive products with rice ingredients better in nutrition and well-being image, there will be continuous flow of new products into the market that incorporate rice.

 

Wheat is out as more food companies turn to rice [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931474

Summary: Major food companies are using rice as a main ingredient in their products.  Daesang, the manufacturer of the food brand Chungjungwon, reported that some 16,000 tons of rice went into the company¡¯s products last year, more than double the 7,800 tons in 2009. The skyrocketing use was mainly due to a single product - gochujang, or red pepper paste, made with rice. Some 7,500 tons of rice went into this product last year, replacing imported wheat, which made up some 20 percent of other brands.  First introduced in 2009, this sauce rapidly gained popularity to become the No. 1 product with the largest market share in its category in the first half of 2010. Daesang also has other products that contain rice as its main grain ingredient, including curry, soybean paste, porridge and soup.  Food manufacturers are flocking to rice because of a widespread awareness that rice can serve as a more nutritious substitute for imported wheat. Domestic consumption of rice has increased because it appeals to health-conscious consumers.

 

 

Consumption of rice drops dramatically in last decade [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931592

Summary: Annual rice consumption tumbled by more than 20 kilograms (44.1 pounds) per person in Korea over the past 10 years as locals diversified their diets to include more Western food and increased their intake of meat and fruit, the government said yesterday. According to Statistics Korea, individual rice consumption totaled 72.8 kilograms in 2010, a decrease of 1.2 kilograms, or 1.6 percent, from the previous year.  Over a 10-year period, annual consumption per person plummeted by 20.8 kilograms, a decline of 22 percent.  Although Koreans are eating less rice than ever before, they still consume more than their Asian counterparts. As of 2009, the average Japanese person ate 58.5 kilograms of rice a year, while the average Taiwanese consumed 48.1 kilograms of rice.  Meat and fruit consumption is on the rise in Korea, with the average local consuming 36.8 kilograms of meat and 67.7 kilograms of fruit in 2009. The numbers are up 17 percent and 12 percent, respectively.

 

5. Livestock Issues

 

Uruguay to push Korea to open up its beef market [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=

Summary: Uruguay is expected to push Korea to open up its beef market for Uruguay beef during the Korean Prime Minister¡¯s visit to the country.  The President of Uruguay will meet the Korean Prime Minister at his ranch and serve Uruguay beef and explain that their beef is safe.  Uruguay is free from FMD and BSE.

 

FMD Infected Hogs Slaughtered [Korean: BYK]

http://www.daejonilbo.com/news/newsitem.asp?pk

Summary: Around 20-30 heads of swine from a farm infected with FMD were slaughtered and sold onto the retail market.  These hogs were sent to the slaughter house before the laboratory test results showed that this farm was infected with FMD.

 

ROKG considers vaccinating hogs against FMD [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1

Summary: As the FMD continues to spread despite the vaccination among cattle, the Korean government is considering the vaccination of hogs as well.  One government official stated that the issue of vaccinating the swine against FMD was discussed at the Animal Health Committee as one of the options for coping with the spread of FMD.

 

United States Willing to be Flexible in Beef Issue during TPP talks with Japan [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1

Summary: The United States is willing to be flexible with agricultural issues, such as the beef import protocol, when it holds talks with Japan about the latter joining the Trans-Pacific Partnership (TPP).  The United States is eager to have Japan join the TPP in order to offset the influence of China in this region. 

 

Uruguay President Strongly Pushes Korean Prime Minister to Open Up It Beef market [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1

Summary: During the meeting with the visiting Korean Prime Minister, The Uruguay President strongly requested Korea to allow Uruguay beef to be allowed to be exported to Korea.  He even quoted a Uruguay proverb which is ¡°Man cannot live on bread alone.  They have to have meat also.¡±  The Prime Minister said that Uruguay needs to undergo the same process as any other country if it wants to export beef to Korea.

 

Assemblyman claims that the reason why FMD is spreading is to allow more beef imports [Korean: BYK]

http://www.frontiertimes.co.kr/news/news/2011/01/06/63438.html

Summary: Democratic Party Assemblyman Joo Sun Park claimed that the reason why the Korean Government is not able to control the spread of FMD is because it is trying to use the spread of FMD as a basis for allowing more beef imports from the United States.  He also asserted that there was a hidden deal between the United States and Korea on beef that was agreed upon during the additional KORUS FTA talks.

 

Butchershops short on meat supply [Korean: BYK]

http://www.asiae.co.kr/news/view.htm?idxno=201101051

Summary: Butchershops in Majandong area are complaining that they are running out of meat supply due to the shut down of some of the major slaughtering plants.  Some of the slaughter plants have shut down in order to control the spread of FMD.

 

Decision on Canadian beef imports imminent [Korean: BYK]

http://www.naeil.com/News/politics/ViewNews.asp?nnum=

Summary: MIFAFF to conclude the Canadian beef import issue before the draft WTO Dispute Panel report comes out in February.  According to the MIFAFF official that spoke with the report on the phone, ¡°The draft WTO Dispute Panel report comes out in February.  We expect the bilateral talks on Canadian beef imports will come to a conclusion before the report is released.¡±

 

Korea temporarily suspends quarantine inspection of pork and egg from Germany [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid

Summary: Korea has decided to temporarily suspend the quarantine inspection of pork, egg and feedstuff from Germany, based on the reports that dioxin levels exceeding the Maximum Residue Level (MRL) had been detected in these products from Germany.

 

Uruguay Wants S. Korea to Import Beef [Korean, OSY]

http://www.yonhapnews.co.kr/politics/2011/01/06/050100

Summary: In a meeting between the Korean Prime Minister H.S. Kim and the Uruguay President Muhika on January 5, Uruguay requested that Korea allow importation of Uruguay beef in the near future.  South Korea intends to develop a FTA with MERCOSUR countries, which includes Uruguay, Brazil, Argentina, and Paraguay.   

 

Imports of German Pork Meat Suspended for Dioxin Risk [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/06/031

Summary: Ministry of Ag. announced on Jan. 6 that imports of German pork meat has been suspended based on recent press reports of finding risky amount of dioxin in German livestock products including eggs, pork meat, poultry meat, and animal feed.  The Ministry added that it will do 100 percent testing on those shipments already arrived in the Korean port before Jan. 6.

 

Local Beef Farmers Raise Concerns as Lotte Mart Launches ¡®Big Bucket¡¯ Sales Promotion on U.S. Beef Ribs [Korean, OSY]

http://biz.chosun.com/site/data/html_dir/2011/01/07/2011

Summary: Lotte Mart has announced a sales promotion of U.S. beef ribs in its newspaper ads on Jan. 6.  Branded as a ¡®Bick Bucket¡¯ promotion event, following the same theme that was used in its sales promotion of fried chicken last month, Lotte offered a very aggressive price cut on the product (1,250 won per 100g plus 20 percent additional discount when purchased by KB Bank credit card).  Korea National Hanwoo Farmers Association criticized Lotte in its press release on Jan. 6 that Lotte¡¯s sales promotion would bring a serious threat to local beef farmers who are currently having a hard time fighting nationwide spread of foot and mouth (FMD) disease. 

 

Lee: More work needed to fight virus [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930651

Summary: President Lee Myung-bak held an emergency meeting with ministers at the Blue House yesterday to discuss how to put a halt to foot-and-mouth disease (FMD), which has continued its spread across the country. Lee said at the meeting that Korea needs measures to protect the country against FMD from China or Vietnam, where cases have been confirmed every year.  ¡°With the number of overseas travelers to Korea at about 15 million and 8 million out of Korea [every year], it is difficult to curb the spread of the disease by enforcing quarantine measures only,¡± Lee said.  ¡°We need to take more fundamental measures,¡± he added, suggesting buying more vaccines.

 

S. Korea confirms new bird flu outbreak at duck farm [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/07/29/

Summary: South Korea on Friday confirmed an additional bird flu outbreak at a duck farm in Jeolla Province, raising concerns that the highly contagious disease may be spreading across the country. The farm ministry said the ducks at the farm in Yeongam, about 385 kilometers south of Seoul, tested positive for the virulent strain of the H5N1 avian influenza.

 

S. Korea orders massive cull amid raging FMD [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/06/0502

Summary: South Korea's quarantine authorities said Thursday that they have ordered a cull of more than one million animals as foot-and-mouth disease (FMD) is rapidly spreading throughout the country.  The farm ministry said it detected three additional cases of the highly contagious disease in the Chungcheong region in the central part of the country and one outbreak in Gyeonnggi Province near Seoul, despite extensive quarantine measures and the use of vaccines on cattle to stem further outbreaks

 

Number of culled animals due to FMD close to 1.34 million heads [Korean: BYK]

http://news.naver.com/main/hotissue/read.nhn?mid=hot&sid1=

Summary: The total number of animals culled due to FMD has reached 1,339,387 heads.  Out of this, cattle accounted for 107,487 heads, and swine accounted for 1,228,147 heads.  The remainders were 2,820 heads of goat and 933 heads of deer.

 

All livestock in FMD areas to be vaccinated [English CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930749

Summary: The government yesterday intensified its response to the outbreak of foot-and-mouth disease (FMD), extending the use of vaccines to all animals in infected regions in an effort to protect the last four virus-free provinces in the country - North and South Jeolla, South Gyeongsang and Jeju Island.  According to the government, 2.17 million cows and 611,000 pigs will be vaccinated nationwide. The Ministry for Food, Agriculture, Forestry and Fisheries held an emergency meeting yesterday and said it will conduct vaccinations on all farms in Gyeonggi, Incheon, North and South Chungcheong, Gangwon and even FMD-free North Jeolla.

 

S. Korea reports two additional FMD outbreaks [English CSY]

http://english.yonhapnews.co.kr/business/2011/01/07/05020

Summary: South Korea confirmed two additional foot-and-mouth disease (FMD) outbreaks on Friday, despite nationwide quarantine efforts to contain the spread of the highly contagious animal disease.  The Ministry for Food, Agriculture, Forestry and Fisheries said a cattle farm in Gangneung, 240 kilometers east of Seoul on the east coast, and a pig farm in Hwaseong, south of the capital city in the Gyeonggi region, tested positive for FMD.

 

Criticism grows as animals are buried alive to prevent disease spread  [English CSY]

Some observers say S.Korea has failed to outline specific culling guidelines, leaving it far behind international standards

http://english.hani.co.kr/arti/english_edition/e_national/

Summary: Critical opinion is growing as it learned that over 1 million animals have been slaughtered due to foot and mouth disease as of Friday, many being buried alive. Calls from animal protection groups for humanitarian culling guidelines that minimize the animals¡¯ pain are growing. Experts point out that while infectious diseases strike livestock yearly, South Korea¡¯s disease control system lags far behind international standards, with practices like live burial failing to be improved. The guidelines for emergency action for foot-and-mouth disease announced by the Ministry for Food, Agriculture, Forestry and Fisheries last October contain nothing regarding animal welfare. The ministry¡¯s regulations curtly call for animals to be slaughtered in the most convenient and quickest way available at the scene among shooting, electrocution, striking or poison, leaving the concrete details to the men on the ground. This does not reflect regulations set down by the World Organization for Animal Health, of which South Korea is a member, which present concrete guidelines for several culling methods, including a suggestion that if you inject the animals with carbon dioxide, it reduces their period of suffering.

 

A Picture: Where¡¯s the beef?  [English CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930676

 

 

A customer looks into an empty supermarket cooler at Lotte Mart¡¯s Seoul Station branch yesterday. The sign states that all beef ribs have been sold out. Lotte Mart, which created a stir with its cheap ¡°Tongkeun Chicken,¡± started selling low-priced ¡°Tongkeun Ribs.¡± [YONHAP]

 

Additional FMD case discovered in S. Korea's central region [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/12/15/

Summary: South Korea confirmed an additional case of foot-and-mouth disease (FMD) on Wednesday in the country's central region, despite more than 50 days of nationwide quarantine efforts. The additional case in Chungju, 147 kilometers southeast of Seoul, brings the total number of confirmed FMD outbreaks to 116, since animals started showing symptoms in late November, the Ministry of Food, Agriculture, Forestry and Fisheries said.  All 17 animals on the small cattle farm have been ordered destroyed along with livestock within a 500-meter radius of the site to prevent further spread of the disease, the ministry said.

 

S. Korea's meat imports spike amid animal disease fears [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/12/05010

Full text: The amount and prices of imported beef in South Korea surged last month as domestic livestock growers were hit hard by the foot-and-mouth disease outbreaks, the customs office said Wednesday.  South Korea imported around 7,606 tons of frozen beef ribs in December, up 24.9 percent from the previous month and 26.8 percent larger than a year earlier, the Korea Customs Service said in a report.

 

For healthy cows, a rush to slaughter [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930867

At Jangwon Food, the only slaughter house in Daejeon, cows wait their turn to be butchered yesterday. Farmers hurried to slaughter their animals before they catch foot-and-mouth disease. By Kim Seong-tae

 

Summary: CHEONGJU, North Chungcheong - Slaughterhouses are working overtime as farmers rush cows and pigs to market before they get infected with foot-and-mouth disease.  Farmers particularly don¡¯t want to miss out on the Lunar New Year holiday, which is when Koreans celebrate by eating beef and pork. In FMD-infected areas, farmers aren¡¯t allowed to butcher their cows and pigs and sell them at market. But in virus-free regions such as Daejeon, farmers are desperately waiting at slaughterhouses, worried that foot-and-mouth disease could reach their area at any moment.
 

 

S. Korea's meat imports spike amid animal disease fears(English, OYS)

http://english.yonhapnews.co.kr/business/2011/01/12/0503000000AEN

 

SEOUL, Jan. 12 (Yonhap) -- The amount and prices of imported beef in South Korea surged last month as domestic livestock growers were hit hard by the foot-and-mouth disease outbreaks, the customs office said Wednesday.

South Korea imported around 7,606 tons of frozen beef ribs in December, up 24.9 percent from the previous month and 26.8 percent larger than a year earlier, the Korea Customs Service said in a report.

 

Institute finds infection and covers up for days [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930930

Summary: The Gyeongsangbuk-do Livestock Research Institute in North Gyeongsang, a premier agricultural breeding facility, became infected with foot-and-mouth disease - and covered it up for six days.  Jeong Chang-jin, chief of the institute, said Tuesday that a female striped ox at the egg transfer center of the institute was found to be FMD-positive by the National Veterinary Research and Quarantine Service last Wednesday despite the institute¡¯s preventive measures.

 

However, neither the National Veterinary Research and Quarantine Service, which tested the ox¡¯s blood, nor the Ministry for Food, Agriculture, Forestry and Fisheries was aware of the fact.  When the institute sent the blood to the Veterinary Service for tests, the request was sent in the name of Jeong, not the institute, to make it look like it came from an individual farm.  Since one ox was infected, the rest of the hoofed mammals in the institute should have been slaughtered quickly. The institute was raising 1,100 such animals, including Hanwoo (cows native to Korea), striped oxen, which are considered a rare variety, milk cows and pigs.

 

 

FMD culls shrink milk supply, shortage feared [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930929

Summary: With thousands of cows falling victim to foot-and-mouth disease (FMD), Korea¡¯s milk supply could be in jeopardy. Experts say that though the supply of domestic raw milk hasn¡¯t fallen to worrying levels yet, a shortage is possible if foot-and-mouth continues to spread unchecked.  According to the Ministry for Food, Agriculture, Forestry and Fisheries yesterday, roughly 1.11 million cows have been slaughtered since the latest FMD outbreak began in late November last year. And in the face of the worst outbreak of FMD, consumers have begun to ask if the milk supply will dry up.

 

Imported beef price up [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930914

Full text: The amount and price of imported beef in Korea surged last month as domestic livestock growers were hit hard by foot-and-mouth disease outbreaks, the customs office said yesterday.  Korea imported around 7,606 tons of frozen beef ribs in December, up 24.9 percent from the previous month and 26.8 percent more than a year earlier, the Korea Customs Service said in a report.  Beef import prices jumped 10.1 percent from a month earlier and 49.5 percent from a year earlier. The price of pork belly, one of the most popular cuts in Korea, rose 2.8 percent in December from November, though imports declined 16.2 percent over the same period.  The hikes in prices and quantity of imported meats come as Korea¡¯s livestock industry continues its battle against foot-and-mouth disease, which affects cloven-hoofed animals such as cattle and pigs.

 

S. Korea confirms more FMD cases in central, southeastern regions [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/13/75/0501

Summary: South Korea confirmed two additional cases of foot-and-mouth disease (FMD) in the country's central and southeastern regions on Thursday, despite nationwide quarantine and vaccination efforts.  The additional cases in Chungju and Yeongyang, 147 kilometers and 330km away from Seoul, brings the total number of confirmed FMD outbreaks in the country to 118 after animals started showing symptoms in late November, the Ministry of Food, Agriculture, Forestry and Fisheries said.  All 287 animals on the cattle farms have been ordered destroyed along with livestock within a 500-meter radius of the site to prevent further spread of the disease, the ministry said.

 

 

FMD not hitting meat prices yet [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2930970

Summary: The devastating outbreak of foot-and-mouth disease has caused more than a million livestock to be slaughtered. In just 40 days since the outbreak, 3.2 percent of the nation¡¯s cows and 12.4 percent of pigs have been culled. Despite the threatened imbalance in the supply and demand of beef and pork, their prices remain stable. How is this possible?

 

In recent years, the number of cattle and pigs has greatly increased. The cow population has increased by 290,000 from a year ago and by 920,000 from four years ago. The significant increase of cows was in response to fears of imported beef triggered by mad cow disease. The increase also stemmed from consumer preference for Korean beef as a result of a new labeling system designating the origin of food products.

 

Meanwhile there have been signs that demand has been shrinking. Although there is no up-to-date statistics available, market analysts say that consumers tend to cut back on meat consumption when there are outbreaks of animal-related diseases like FMD. According to the Korea Institute for Animal Products Quality Evaluation, the average auction price this month for 1 kilogram of top quality beef sirloin was 14,630 won ($13), which is only 600 won more than what it was in early November before FMD broke out.

 

Additional FMD case found in central S. Korea [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/18/29/0501000

Summary: South Korea confirmed an additional case of foot-and-mouth disease (FMD) in the country's central region on Tuesday, though nationwide vaccinations and quarantine efforts are having some effect on containing the disease.  The additional case at a pig farm in Yesan, 134 kilometers south of Seoul, brings the total number of confirmed FMD outbreaks to 121, since animals started showing symptoms in late November, the Ministry of Food, Agriculture, Forestry and Fisheries said.  The latest outbreak comes after no confirmed case was tallied by the central government on Monday, while only one outbreak was reported on Saturday and Sunday, respectively.  All 3,000 pigs on the farm have been ordered destroyed along with livestock within a 500-meter radius of the site to prevent further spread of the disease, the ministry said.

 

Seoul to hike milk output quota to tackle FMD-sparked dearth [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/18/05010000

Summary: South Korea will temporarily allow local dairy farms to increase milk production to counter shortfalls caused by the culling of dairy cows due to the recent foot-and-mouth disease (FMD) outbreak, the farm ministry said Tuesday.  The move calls for production quotas to be raised by 5 percent for the next two years to help boost supply and preempt price hikes that can exacerbate inflationary concerns triggered by higher food prices, the farm ministry said.

 

S. Korea orders culling of some 2 mln livestock to fight FMD [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/17/44/05010000

Summary: South Korea has ordered the culling of close to 2 million livestock across the country in order to slow the spread of the highly contagious foot and mouth disease (FMD), the government said Monday.  The farm ministry said it has ordered a little over 1.98 million cattle, pigs, goats and deer destroyed on 4,155 farms since the first FMD case was confirmed on Nov. 29.

 

FMD leads to spike in wholesale prices of pork [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931174

Summary: Wholesale pork prices have soared to record levels as farmers cull scores of pigs in the battle against foot-and-mouth disease (FMD). But there¡¯s good news for consumers: It costs roughly the same to bring home the bacon as it did before the FMD scare. Nearly 19 percent of the nation¡¯s pigs have been slaughtered since the outbreak of the disease was first reported in Korea 50 days ago.  As a result, pork wholesale prices have been reaching new highs almost daily, with slaughter houses temporarily closing and the movement of livestock severely restricted to prevent the spread of the disease.

 

Milk quotas raised to counter dairy cow cull [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931169

Summary: Korea will temporarily allow local dairy farms to increase milk production to counter shortfalls caused by the culling of dairy cows due to the recent foot-and-mouth disease outbreak, the Ministry for Food, Agriculture, Forestry and Fisheries said yesterday.  The move calls for production quotas to be raised by 5 percent for the next two years to help boost supply and pre-empt price hikes that can exacerbate inflation triggered by higher food prices, the Agriculture Ministry said. The FMD outbreak, first confirmed on Nov. 29, has effectively spread throughout Korea, causing quarantine officials to cull more than 2.1 million animals so far, including 134,735 heads of cattle.  The ministry estimated total milk production for 2011 may reach 1.91 million tons, or a drop of 6.8 percent from last year.

 

S. Korea confirms more FMD, bird flu cases [English, CSY]

http://english.yonhapnews.co.kr/news/2011/01/19/020000000

Summary: South Korea confirmed additional cases of foot-and-mouth disease (FMD) and bird flu on Wednesday, in the midst of nationwide quarantine efforts involving vaccinating and massive culling of livestock.  The farm ministry said two cases of FMD were found in cattle ranches in Gangwon Province on the country's northeastern region, while the bird flu case involved a duck farm in Anseong, about 70 kilometers south of Seoul.

 

FMD likely to dent Seollal exodus [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/01/

Summary: Many Koreans who work and live in Seoul and other urban areas were born and raised in the provinces. It is a decades-old tradition that they visit their hometowns to see their parents, relatives and friends at least twice a year ¡ª the Lunar New Year (or Seollal) and Chuseok holidays.  But this biannual ritual may not materialize during the upcoming Lunar New Year holiday from Feb. 2 to 6 as the mass migration could cause the spread of foot-and-mouth (FMD) disease and bird flu to uninfected areas.

In a desperate attempt to stop the devastating epidemic, scores of provincial governments have launched a campaign to prevent people from traveling to other areas during the Lunar New Year holiday. Among others, South Jeolla Province, which has seen not a single case of FMD, is asking those who plan to visit there during the five-day holiday not to do so in a bid to stop the spread of the highly infectious virus.  The provincial government has asked dozens of organizations made up of individuals born in the country¡¯s southwestern province not to visit their hometowns.

 

Avian Tuberculosis found in Korea for the first time in 50 years [Korean: BYK]

http://news.donga.com/3/all/20110121/34265237/1

Summary: According to news reports, a new case of avian tuberculosis has been found in a poultry farm located in Gangneung, Gangwon Province.  This is the first case of avian tuberculosis in 50 years since the last case was detected in Korea in 1961.  The infectivity of avian tuberculosis is known to be lower than avian influenza but is a zoonosis.  However, there has been no reported case of avian tuberculosis being transmitted to human beings in Korea.  The Korean government is reviewing the possibility of culling the animals where they have found avian tuberculosis.

 

Foot-and-mouth disease quarantine rules revised  [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931301

Summary: Korea has revised its foot-and-mouth disease quarantine rules to limit the culling of livestock, as the effects of vaccinations should better protect animals from the contagious virus, the government said yesterday.  Deputy Farm Minister Lee Sang-kil told reporters that with vaccinations completed for most cattle farms across the country, the government has issued new rules to stem the spread of FMD.

 

¡°Under the new rules, only infected animals and newborn calves that have not developed FMD antibodies are to be destroyed,¡± he said. ¡°Those that show no symptoms will not be culled although they will be subject to detailed tests and barred from leaving the farm.¡±  The move comes after Seoul ordered the vaccination of livestock on Dec. 25, after quarantine efforts were unable to stop the spread of the highly contagious animal disease that was first confirmed in late November.

 

FMD expected to hike beef imports  [English, CSY]

Pork imports may jump 15 percent to 20 percent, observers say

http://joongangdaily.joins.com/article/view.asp?aid=2931286

Summary: Pork and beef imports by Korea, the sixth-biggest buyer of U.S. pork in 2009, may climb this year as the nation culls swine and cattle to fight its worst outbreak of foot-and-mouth disease, an industry group said. Pork imports may jump 15 percent to 20 percent from about 179,500 metric tons in 2010, said Choi Jong Sun, chairman of the Korea Meat Import Association. Beef purchases may also gain as importers hold low inventories after deferring imports last year on high prices. The fifth-largest buyer of U.S. beef and veal in 2009 is destroying about 2.3 million animals, mostly swine and cattle, or about 17 percent of herds, in its biggest cull. U.S. cattle futures jumped to a record on Jan. 18 and hog prices have gained on speculation that demand for U.S. meat exports will increase.

 

S. Korea confirms more FMD cases [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/21/86/05

Summary: South Korea confirmed two additional cases of foot-and-mouth disease (FMD) in the central part of the country as it moves to complete the vaccination of all livestock by the end of the month, the government said Friday.   The farm ministry said two cases of FMD were found on small cattle farms in Asan and Gongju, about 95 kilometers and 160km south of Seoul, respectively. FMD is highly contagious and affects all cloven-hoofed animals, such as cattle, pigs, deer, goats and buffalo.  Quarantine officials said that under the revised quarantine rules that went into effect on Thursday, only animals that have been infected with the animal virus will be culled, along with recently born calves on the farms that have not been inoculated. The two farms raised a total of 52 cattle.

 

S. Korea mulls development of foot-and-mouth disease vaccine [English, CSY]

http://english.yonhapnews.co.kr/national/2011/01/23/38/0301000

Summary:  Signaling a more proactive approach to preventing massive outbreaks of foot-and-mouth disease (FMD), President Lee Myung-bak said Monday that his administration is considering the local production of anti-FMD vaccines.

 

FMD hits famous beef producing region [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/01/

Summary:  The deadly foot-and-mouth disease (FMD) and avian influenza are wreaking havoc on the nation¡¯s livestock and poultry industries, spreading relentlessly in key regions the nation heavily relies on for beef and chicken. Cows at a farm in Sangju, North Gyeongsang Province, the nation¡¯s second largest beef producing area, tested positive for the highly contagious FMD, the Ministry for Food, Agriculture, Forestry and Fisheries said Sunday. The FMD infection in Sangju has come even after the quarantine authorities vaccinated animals there. Sangju, where 64,000 cows are raised, is only behind Gyeongju with 77,000 cows in beef production. With the high quality of meat, Sangju beef was used for the main dish at the G20 Seoul Summit dinner last November.  This is the first time for the disease to break out in the region — Sangju has been FMD-free since the first outbreak in Andong in the same province, and Agriculture Minister Yoo Jeong-bok recently praised the region¡¯s epidemic prevention system.

 

Korea to allocate TRQ for frozen pork [Korean: BYK]

http://www.eto.co.kr/news/view.asp?Code=201101250933

Summary: Korea will allocate a Tariff Rate Quota (TRQ) of 60,000 MT for frozen pork to control the increasing pork prices.  The duty for pork imports coming in under the TRQ will be zero percent.  The 60,000 MT will be composed of 10,000 MT of frozen pork bellies and 50,000 MT of other frozen pork products that will be used for processing purposes.  The current duty for frozen pork imports is 25 percent. The TRQ is applicable to imports made up to June 30, 2011.

 

 

Taiwan to enhance testing of beef imported from U.S.A. and Canada [Korean: BYK]

http://www.ytn.co.kr/_ln/0104_201101210333311901

Summary: Taiwan is going to increase the sampling rate for beef being imported from the United States and Canada from the current 5% to 20%.  Taiwan is taking such measures after detecting ractopamin in beef imported from the United States and Canada.  It is also reported that Taiwan will be requiring importers to submit a certificate that the beef being imported from the United States and Canada does not contain ractopamin, which is a prohibited substance.

 

Farmers quarantining themselves for New Year [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=

Summary: Ahead of the Lunar New Year holiday, livestock farmers are voluntarily cutting themselves off from their family and friends in fear that visitors might infect their farms with foot-and-mouth disease (FMD) or avian influenza A, fencing themselves in, shutting down roads and closing local markets. Residents of Gaya, Hongseong County, South Chungcheong, have blocked off roads leading to their village to fend off visitors from contagious regions since Jan. 11. Gaya is free of FMD.

 

Meat prices fluctuate as FMD crisis escalates [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931425

Summary: Pork and chicken prices are on the rise, while the cost of beef is falling. The price of 100 grams of pork belly last week was 1,680 won ($1.50), which represents a more than 20 percent increase from 1,380 won two months ago.  This is the biggest increase since September 2010.  In addition, the price of chickens and eggs have gone up because of the spread of avian influenza. Last week the wholesale price of a chicken was 2,100 won. This is 20 percent higher than the price before the outbreak.  At E-Mart, the retail price for a kilogram of chicken has increased 10 percent from last week when the first avian influenza case was reported in Paju, Gyeonggi. Egg prices are also climbing ahead of the Lunar New Year holiday next week.

 

In contrast, the price of beef has been falling.  According to the Korea Institute for Animal Products Quality Evaluation, the price for a kilogram of premium pork was 7,600 won. This is 3,000 won more than a month ago. In contrast, the wholesale price of hanwoo, or Korean beef, fell by 1,500 won to 14,400 won per kilogram during the same period.  Analysts said the reason that hanwoo prices have fallen while pork prices are on the rise is that the FMD outbreak has affected pig farms more than cattle farms.

 

FMD vaccine development to take time [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/01/117l

Summary: President Lee Myung-bak called for the development of vaccines for foot-and-mouth disease (FMD) Monday as a means to fight the highly contagious animal disease. But analysts said it will take a long time before the country could actually develop a vaccine of its own, while its commercial viability remains unclear.  Lee¡¯s remark came as the disease has spread to most parts of the country with over 2 million animals having been culled despite nationwide quarantine operations, causing unprecedented financial damage worth more than 2 trillion won.  However, the development plan will not be an instant solution to the current epidemic as it takes more than a year to produce a reliable and accredited vaccine. Following the remark, the Ministry for Food, Agriculture, Forestry and Fisheries said it will form a taskforce to review necessary steps. The National Veterinary Research and Quarantine Service (NVRQS), a unit of the ministry, will undertake the task.

 

S. Korea confirms more FMD outbreaks [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/25/85/0501

Summary: South Korea has confirmed two more foot-and-mouth disease (FMD) outbreaks in the country despite concerted quarantine efforts and wholesale vaccination of livestock, the government said Tuesday.    The Ministry for Food, Agriculture, Forestry and Fisheries said pig farms in Gimhae and Gongju, 450 kilometers and 160km south of Seoul, respectively, tested positive for the highly contagious animal disease.   The outbreak in Gimhae is the second confirmed case in the province located in the southeastern tip of the country and a clear sign that FMD has spread nationwide. A total of six provinces and two large cities had confirmed cases of the animal disease since the first outbreak was reported on Nov. 29.   With the exception of some breeding sows that received vaccines more than two weeks ago, all 8,188 animals will be destroyed at the farms to stop the spread of the disease, the ministry said.

 

FMD holiday precautions out

Critics say crisis control manual was outdated and not aggressive [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931542

Summary: Before en masse travel begins for the Lunar New Year holidays that start on Feb. 2, the government has appealed to the public to help fight foot-and-mouth disease (FMD). Meanwhile, critics are blaming the government¡¯s FMD control methods for causing the nationwide spread of the disease. In the current manual, livestock within a 500-meter radius of infected farms should be slaughtered, with a transport ban and detergent washing of vehicles within a 10 kilometer radius. Although the disease has an incubation period of two weeks at maximum, there were no measures to consider regions with high possibility of infection, critics say.  An epidemiologic investigation should have been launched to carefully determine the exact infection route, but the government failed to do so since there was no record of vehicles or people passing through areas, experts say. Vaccinations were also carried out according to the manual, and they were not aggressive, giving the disease opportunities to slip by, they observed. Lee Sang-gil, head of the food industry policy department at the Agriculture Ministry said they will ¡°come up with a new manual so that this kind of case isn¡¯t repeat.¡±

 

Pork tariff is set aside until June. Move to curb rising prices from FMD [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931482

Summary: Korea will temporarily eliminate tariffs on imported pork in an effort to stabilize prices in response to a supply shortage caused by the spread of foot-and-mouth disease, the Finance Ministry said yesterday.  The Ministry of Strategy and Finance said the current 25 percent tariff on frozen pork meats, including pork belly, will be cut to zero starting this month.  The reduction will remain effective until the end of June. The ministry said that it will consider extending the cut depending on market conditions.  The move is aimed at stabilizing prices for pork and related products such as ham and sausage because of concerns that the massive slaughter of pigs due to the spread of foot-and-mouth disease is driving up meat prices. Tariffs on other imports, including mackerel, powdered milk and coffee beans, will also be eliminated.

 

S. Korea confirms two more bird flu outbreaks [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/27/05020

Summary: South Korea on Thursday confirmed two additional bird flu outbreaks in Gyeonggi Province near Seoul despite nationwide quarantine efforts. The farm ministry said the new cases were reported at poultry farms that raised chickens and pheasants in Pyeongtaek about 70 kilometers south of the capital city.

 

MIFAFF Minister to Resign After FMD Crisis gets settled down [Korean, CSA]

http://news.naver.com/main/hotissue/read.nhn?mid=hot&sid1

Summary: MIFAFF Minister Yoo stated on Jan 28 that ¡°I will resign after eradicating FMD and getting all situations under control.¡±  He called for an emergency press conference today and emphasized, ¡°I will not cling to the Minister position.¡±  Such statement seems to be given as an answer to the demand that someone should take a responsibility for the FMD crisis.  He added that a politician should show accountability for issues regardless of the rights or wrongs of the matter.

 

First suspicious case of FMD reported in Jeollanam-do [Korean: BYK]

http://news.sbs.co.kr/section_news/news_read.jsp?news_id

Summary: The first suspicious case of FMD was reported in Jangsung, Jeollanam-do.  The confirmation test result will become available on January 31.  If this suspicious case turns out to be positive, then the whole mainland will have been infected with FMD, leaving Jeju Island as the sole FMD free area.

 

Korea to complete first round of FMD vaccination today [Korean: BYK]

http://www.yonhapnews.co.kr/politics/2011/01/30/0505000000

Summary: Korea will complete the first round of FMD vaccination today, as an additional shipment of 1.5 million doses of FMD vaccine arrived at Incheon airport on January 30.  This additional vaccine will immediately be sent to hog farms that have not been vaccinated that are located in Jeolla province and Jeju province.  Korea has so far completed vaccinating 3.62 million heads of cattle.  It also has completed vaccinating 6.45 million heads out of 7.66 million heads of swine that need to be vaccinated.  The vaccination will be complete when 558,000 heads of swine in Jeonbuk and 513,000 heads of swine in Jeonnam and 47,000 heads of swine in Jeju finish getting vaccination.

 

Korea to reduce the animals subject to culling on farms that have been vaccinated against FMD [Korean: BYK]

http://search.ytn.co.kr/ytn_2008/view.php?s_mcd=0102&key=2011

Summary: The Korean government has decided to reduce the animals on farms that have been vaccinated against FMD from being subject to culling.  As for cattle, boar and sows that have been vaccinated, MIFAFF has decided to only cull the infected animal and calf and piglets thast are born after vaccination.  As for porkers (pigs being fattened), if an FMD infected animal is found on a farm after 14 days from vaccination, only the pigs in the same room as the infected animal will be culled.  If an FMD infected porker is found on a farm prior to 14 days from vaccination, only the pigs in the same room and same barn as the infected animal will be culled.  MIFAFF has also required all farms that have been vaccinated against FMD but where 14 days have not past from the date of vaccination to receive their feed outside the farm area so that compound feed trucks will not get close to the farm.

 

Meat imports surge in FMD reaction [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931627

Summary: Korea¡¯s imports of beef and pork have jumped this month amid a massive slaughter of cattle and pigs caused by the spreading foot-and-mouth disease (FMD), the Korea Customs Service said yesterday.  Korea imported 24,513 tons of beef during the first 21 days of this month, up 22.7 percent from the same period a month earlier. Pork imports also jumped 31.1 percent to 26,625 tons.  Prices of per-kilogram beef and pork also jumped 25.1 percent and 16.7 percent this month compared with the same period a year ago.  Korea has culled around 2.6 million livestock since the outbreak of the highly contagious disease in late November. The disease has spread almost across the entire nation now despite the government¡¯s stepped-up quarantine efforts.  Prices of pork and other meats soared in the domestic market, making it more expensive for people to prepare meals for family gatherings during the Lunar New Year holiday early next week.  As part of stabilizing meat prices, the finance ministry said Tuesday that it will cut import tariffs on 60,000 tons of pork from the current 25 percent to zero until the end of June. Pork is cheaper than beef and popular especially among working-class people.

 

Gov't to tighten quarantine for Korean tourists from FMD-hit countries during holiday [English, CSY]

http://english.yonhapnews.co.kr/national/2011/01/28/80/03020

Summary: The government will beef up its quarantine of locals returning from trips to countries hit by foot-and-mouth disease (FMD) during next week's Lunar New Year's holiday, the Justice Ministry said Friday.   Livestock farmers and others who are also open to risks will be recommended to undergo disinfection by local health authorities immediately upon arriving in South Korea from foreign countries where outbreaks of animal epidemics have been reported, the ministry said.   Other South Korean nationals returning from overseas trips during the holiday will be required to show customs declaration forms along with their passports when re-entering the country.

 

 

Pulmoowon Increases Retail Price of Packaged Tofu by 20.5% [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2010/12/29/03180000

Pulmoowon, a leading processor of tofu in Korea, announced on Dec. 29 that it has increased retail price of packaged tofu by an average of 20.5 percent.  Pulmoowon explained that the price increase was due to a steep rise of soybean price.  According to Pulmoowon, wholesale price of white soybean in Korea rose over 100 percent in 2010 to 7,000 won/1 kg.

 

Starbucks Korea ¡°Americano was the Top Seller in 2010¡± [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20110105

Summary: Starbucks Korea announced year 2010 sales data collected from its 335 outlets in Korea.  According to the sales report, Americano was the top selling item in 2010 (15 million cups), followed by Cafe Late (10 million cups), Caramel Machiatto (4.6 million cups).  Starbucks commented that consumers were looking for products that delivered more natural flavors of coffee.

 

E-Mart to Expand Membership Warehouse Discount Store Business ¡¦ Soon to Open Three New Stores ¡¦ Likely to Compete Against COSTCO Stores [Korean, OSY]

http://biz.chosun.com/site/data/html_dir/2011/01/06/20110l

Summary: Shinsegae E-Mart, the leading hypermarket store chain in Korea, plans on expanding its membership warehouse format discount store business.  E-Mart said in a press interview on Jan. 6 that some of its under-performing stores are considered to be converted into ¡°E-Mart Traders¡±, a membership warehouse discount store brand newly launched in Nov. 2010.  As a result, it is expected that E-Mart¡¯s new membership warehouse stores will compete against the segment leader, COSTCO Korea.  The E-Mart Traders Gusung store, which was the first E-Mart store converted into the membership warehouse format last year, reported a 130 percent increase in the monthly sales and 97 percent increase in the monthly store shoppers within the first month after launching.

 

Fair Trade Committee Introduces Standard Contract Form to Prevent Disputes between TV Home-Shopping Channels and Product Suppliers [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/10/031800

Summary: Fair Trade Committee announced on Jan. 10 a standard contract form that will be used by TV home-shopping channels and product suppliers.  According to the committee, the contract form will help reduce disputes between the home-shopping channels and the suppliers by specifying the amount of promotional/broadcasting expenses that the supplier/the channel will be responsible for, the length of broadcasting, and the penalties that the supplier/the channel will be paying when failing to provide the agreed products/services.

 

Ministry of Ag. to Develop a Unified Quality Assurance Certification System by 2012 [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/08/0318000

Summary: Ministry of Agriculture, Forestry, Fishery and Food (MAFFF) announced on Jan. 9 that it is working on a unified quality assurance certification system, which will replace existing 18 different certification systems such as HACCP and GAP.  MAFFF added that the new system will be in use by as early as 2013.

 

A Picture: Meat market  [English, CSY]

 

Customers crowd the meat section of the Lotte Mart branch in Jamsil-dong, southeastern Seoul, yesterday. Lotte Mart is selling Korean beef and pork at discounts of up to 58 percent at its 90 stores through Jan. 19.

 

Bird flu spreads to northern S. Korea [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/10/71/05010

Summary: South Korea confirmed its first bird flu outbreak in the Gyeonggi region near Seoul on Monday, raising concerns that the highly contagious disease is spreading across the country despite quarantine efforts. The farm ministry said a duck farm in Anseong, 77 kilometers south of Seoul, tested positive for the virulent strain of the H5N1 avian influenza after birds started dying off over the weekend.

 

Ashuly, Family Restaurant Chain under E Land Group, Attracts Consumers with ¡®9,900 won Salad Buffet¡¯ [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=20110

Summary: Ashuly, a family restaurant chain under E Land Group, was the fastest growing restaurant company in Korea over the last three years.  The number of Ashuly outlets showed a sharp increase from 37 in 2007 to 93 in 2010.  Total sales grew 83 percent in 2010 to mark 150 billion won.  The key success factor was low price and high quality.  The lunch salad buffet is offered only at 9,900 won.  The reason that the restaurant could offer high quality meals at such low price was the high turn over rate.  Most of the Ashuly restaurants are located in large-scale retail stores.  Average number of customers to Ashuly restaurant is about two times larger than other major restaurants. 

 

Woolsan City to Offer a Hearing to Discuss Entry of COSTCO Store [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/12/0318000

Summary: Woolsan city buk-gu office will host a hearing meeting on Jan. 17 in an effort to middle the dispute between COSTCO Korea and local retailers.  Local retailers are against the entry of this large-scale retailer into the market.  Woolsan city buk-gu office did not accept construction application submitted by COSTCO last year, reflecting the voice of the local retailers.

 

McDonald¡¯s Korea to Double Its Outlets in Korea by 2015 [Korean, OSY]

http://www.newswire.co.kr/newsRead.php?no=522317&lmv=A01

Summary: Sean Newton, new president of McDonald¡¯s Korea, said in a press interview on Jan. 17 that the total number of McDonald¡¯s outlets in Korea will be increased from 243 to 500 by 2015.  In particular, over 80 percent of the new McDonald¡¯s outlets will be ¡°drive thru¡± stores.  Mr. Newton added that South Korean market should have a potential to become as big as France or England where McDonald¡¯s has around 1,000 outlets.

 

Ministry of Ag. to Strengthen Monitoring on Country of Origin Labeling Violations from February [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/18/030100000

Summary: Ministry of Agriculture, Forestry, Fishery, and Food announced on Jan. 18 that it will strengthen monitoring on country of origin labeling violations from February.   Currently 67 retail products, including rice cake, bread, snacks, bakery products, pizza, dumpling, alcohol beverages, table salt, sun flower seeds, blueberries, and pomegranate, are required to label the country of origin.  In addition, restaurants are also required to label the country of origin on several products, including rice, cabbage Kimchi, duck meat, and home-delivery fried chicken.

 

City of Seoul to Regulate Large-scale Retailers ¡¦ New Stores Not Allowed to Sell Pizza, Fried Chicken, Bakeries, and Meat [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20110120/

Summary: City of Seoul announced on Jan. 19 that the new SSM (Super Supermarket) regulation, which intends to protect small to medium size retailers, will go into force from February.  According to the regulation, newly open stores by large-scale retailers within 500 meters radius from designated ¡°traditional market¡± zones will not be allowed to sell pizza, fried chicken, bakeries, pork and beef, items that would have a significant impact on the sales of small retailers in the vicinity of the store.

 

¡®2 AM Deep Discount Show¡¯ by CJ TV Home Shopping Targets ¡®Owl Consumer Group¡¯ [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/19/03180

CJ TV Home Shopping, a leading home hopping channel in Korea, reported that its new program ¡®2 a.m. deep discount show¡¯ has made a successful sales since launching on Jan. 9.  The show airs at 2 p.m. every Sunday morning and offers deep discounts on seasonal products.  During the last two shows, a total of 15,000 customers purchased products (mostly winter clothing items), which tells that a significant number of Koreans are living an ¡®owl¡¯ life.

 

NACF Seeks to Enter TV Home-Shopping Market [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011

Summary: National Agricultural Cooperative Federation (NACF) announced a new business plan that reflects drastic changes in company structure and business environment due to a scheduled revision in NACF law by the national assembly in February.  The revision reportedly includes dividing of NACF into two separate companies, one handling agricultural businesses, and the other financial businesses.  W.B. Choi, the chairman, said in the press interview on Jan. 20 that the revision in the law will allow NACF to focus its resources more on areas that can provide supports to local farmers and agricultural sector.  The new business plan includes expansion of retail business under NACF.  Mr. Choi said that TV Home-Shopping is one of the key areas that the new NACF will try to expand into in the coming years.

 

Shinsegae Co. Considers Splitting into Shinsegae Department Co. and E-Mart Co. [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=20110120

Summary: Shinsegae Co., the leading retail company in Korea that operates Shinsegae Department Store chain and E-Mart hypermarket chain, announced on Jan. 20 that the company is considering a split into two separate companies around department store business and hypermarket business.  Shinsegae explained that the idea is part of its efforts to seek higher efficiency in operation and more aggressive expansion opportunities.

 

CJ Jeiljedang Remains the Leading Supplier of Imported Grape Seed Oil [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/24/031800

Summary: According to an AC Neilson data, CJ Jeiljedang remained the leading supplier of imported grape seed oil in Korea at W26 billion of sales in 2010, which accounted for 28.3 percent of total sales of grape seed oil in the market.  Total sales of imported grape seed oil in 2010 amounted to W92 billion.  The market size of imported grape seed oil has grown 10 times since 2005.

 

Gov¡¯t to Lower Import Tariffs Additionally on 7 Consumer Products, including Frozen Mackerel, Frozen Dried Pollack Meat, Infant Formula, and Coffee [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/21/03180

Summary: Gov¡¯t announced on Jan. 21 that it will additionally lower import tariffs on seven consumer products, including Mackerel, Frozen Dried Pollack Meat, Infant Formula, and Coffee, in an effort to stabilize the soaring consumer price.  Gov¡¯t has announced a list of 67 products earlier in January which will be subject to a temporary import tariff reduction.  Gov¡¯t will announce exact amount of cuts for the additional products soon.

 

Smallest Size (15 Liter) Microwave Oven by Daewoo Sells Like Hotdogs [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/201101

Summary: Daewoo Electronics reported that sales of a 15 liter size microwave oven, smallest size in the market, have reached 100,000 units only in five months since launching.  The company said that the outstanding sales of the microwave oven are likely to continue in the coming months because of the strong demand by single household families.  The company has recently launched a series of electronics targeting the single households, including smallest size laundry machine and refrigerator.

 

Korean Consumers Purchase More On-Line, Master Card Survey [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/25/030

Summary: A survey by Master Card revealed that Korean consumers were the biggest user of on-line shopping among 15 countries surveyed.  Average number of on-line purchases by Koreans in 2010 was 5.9, which was higher than Japanese (5.1) and Chinese (5.6).  Koreans also marked the highest score (63 point) in on-line shopping aptitude test, followed by Japanese (57 point).  

 

S. Korea to cut tariffs on pork imports to ease price instability [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/25/16/

Full text: South Korea will reduce tariffs on imported pork in an effort to stabilize prices amid a supply shortage caused by the spread of foot-and-mouth disease here, the finance ministry said Tuesday.    The ministry said that it will impose a tariff quota on pork, cutting tax rates on 60,000 tons of the meat from the current 25 percent to zero percent starting this month.   The tax reduction will remain effective until the end of June. The ministry said that it will consider extending the cut further depending on market conditions after the target month.   The move is aimed at stabilizing prices of pork and related products such as ham and sausage amid concerns that the massive slaughter of pigs due to the spread of foot-and-mouth disease is driving up meat prices.  More than 2 million cattle, pigs, goats and deer have been culled since the outbreak of the highly contagious animal disease in late November, according to Seoul's quarantine officials.

 

Imports of Bottled Water on a Surge ¡¦ Up 18 Percent in 2010 [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/27/0318000

Summary: According to the Korea Customs Office, imports of bottled water amounted to $7.9 million (1,060 tons) in 2010, up 18 percent from the previous year.  France was the leading export of bottled water to Korea with 78.5 percent market share, followed by Italy (7.2%), Fiji (3.7%), and the U.S. (2.5%).  Average import price of bottled water, W907, was even higher than crude oil (W578).

 

¡®QR¡¯ Code Attached to Jindo Green Onion, First Time among Fresh Vegetables [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/27/0318000

Summary: Jindo Provincial Government announced on Jan. 27 that packaging of green onion grown in Jindo will include a QR (Quick Response) code, though which consumers can obtain detailed information about the product at the point of purchase by scanning the code with a smart phone.  Jindo accounts for 60 percent of green onion production in Korea, and introduction of the QR code will help the province promote the quality of its green onion to the consumers.
 

 

7. North Korea Issues

 

N. Korea apparently struggling to curb foot-and-mouth disease: officials [English, CSY]

http://english.yonhapnews.co.kr/northkorea/2011/01/18/43/0401

Summary: The highly contagious foot-and-mouth disease, which has forced South Korea to order the culling of nearly 2 million head of livestock, appears to have broken out in North Korea, too, according to officials.  Citing recent visitors to the impoverished communist country, South Korean government officials said Tuesday that the North is believed to be stepping up its quarantine efforts after outbreaks of the deadly animal disease were reported.

 

Historic cold could hamper N. Korea's food production [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/01/113l

Summary: North Korea¡¯s state media said Saturday the harsh winter that has hit the peninsula has caused hardship for ¡°the people¡¯s lives¡± and could severely affect spring farming activities.  South Korean humanitarian aid groups project that the harsh conditions are severely compounding existing malnutrition and shelter problems.   Vismita Gupta-Smith, an official of the World Health Organization, which operates an office in Pyongyang, said no unusual pattern of disease or health conditions had been observed by WHO staff.  Any effect of the cold on the spring farming season would come at a particularly inopportune time: the United Nations recently estimated that some 5 million North Koreans will face food shortages this year as the impoverished country continues to struggle with a lack of staple grains.

 

U.S. Considers Resume Food Aid to North Korea, 500,000 Tons a Year [Korean, OSY]

http://news.donga.com/Politics/3/00/20110127/34443714/1

Summary: Deputy Secretary of the U.S. State Department, who visited Seoul earlier this week, reportedly told the Korean government that the U.S. was considering resuming food aid program to North Korea, around 500,000 tons a year.  Korean government expressed a concern that any friendly gesture by the U.S. would give a wrong message to North Korea under the situation when North Korea continued its nuclear weapon program.

 

North Korea needs 800,000 MT of rice this year [Korean: BYK]

http://www.ytn.co.kr/_ln/0101_200609151001328790

Summary: WFP estimated that North Korea needs 800,000 MT of rice support from foreign countries this year.

 

S. Korea denies U.S. positive about resuming food aid to N. Korea [English, CSY]

http://english.yonhapnews.co.kr/national/2011/01/28/10/03010

Summary: South Korea denied a news report Friday that the United States is positive about resuming food aid to North Korea after the impoverished nation asked for it amid a deadlock over the international nuclear standoff.     A local newspaper cited an unnamed diplomatic source as saying that North Korea has recently asked for 500,000 tons of food aid from the U.S. via their New York dialogue channel, and that Washington reviewed the request positively.   U.S. Deputy Secretary of State James Steinberg raised the issue when he visited Seoul Wednesday, but South Korean officials reacted negatively to the demand over concerns that aid resumption would undercut international pressure on Pyongyang, the paper said.   Seoul's foreign ministry declined to comment, saying it is not in a position to confirm the report. However, the ministry said it is "different from the truth" that the U.S. has expressed a positive position about resuming aid to the North.

 
 

70% of Chinese People Say ¡°Made in China Food Is Not Safe to Eat¡± [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/02/0318000

Summary: According to a consumer survey co-administered by a Chinese monthly magazine ¡®Shaokang¡¯ and Tschinghwa University, 70 percent of the respondents replied that foods in distribution in China are not safe to eat.  Only 21 percent of the respondents said that Chinese government maintained a proper control on food safety issues.

 

Monthly household spending on food will be 330,000 Won [Korean: YSY]

http://news.hankooki.com/lpage/economy/201101/h2011010

Summary:  According to the outlook of CJ economic research institute, Korean Monthly household spending on food will be 330,000 Won this year 2011, mainly due to inflation of food price. However total volume of household consumption on food will not very much change.

 

Korea¡¯s kimchi exports reach $98.4m in 2010 [English, CSY]

http://www.koreaherald.com/business/Detail.jsp?newsMLId

Summary: Korea kimchi exports rose 10 percent on-year to $98.4 million last year thanks to solid overseas demand for the spicy fermented side dish, the government said Thursday.  The Ministry for Food, Agriculture, Forestry and Fisheries said the outbound shipment total was the second-highest annual figure after the $102.7 million reported for 2004.

 

The annual increase is noteworthy because problems in supply and demand caused by bad weather effectively halted kimchi exports in September and October, the ministry said.  One reason for last year¡¯s gain was due to the rise in kimchi prices compared to 2009 and improved overseas consumer confidence for locally produced products, it said.

 

W790 coffee touches off price war [English CSY]

http://www.koreaherald.com/business/Detail.jsp?newsMLId

Summary: The dispute over franchise food prices was initially sparked by E-Mart¡¯s cheap pizza brand earlier last year and developed into a political and social issue following Lotte Mart¡¯s steep discounting of its chicken.  Taking advantage of good publicity for the chicken, Lotte Mart has continued to apply the price strategy to other products such as bicycles, handheld computers and meat.  The company said Sunday that it will hold a 10-day event from Monday to sell premium Korean beef and pork at discounted prices of up to 58 percent.

 

¡°We have been promoting the consumption of Korean beef more than our competitors by holding four special events in the past month involving Korean beef since the spread of the foot-and-mouth disease,¡± said a Lotte Mart official.  ¡°However, we felt it was a shame that such efforts were not recognized and misunderstanding spread instead with last week¡¯s promotional event of marinated ribs from the U.S., which was planned ahead of the disease outbreak.¡±  At the mart¡¯s event that takes place until Jan. 19, 100 grams of sirloin steak will be offered at 5,700 won, down from 7,480 won, and 100 grams of bulgogi will cost 2,900 won, down from 3,880 won, according to its officials. About 100 grams of pork sirloin will also be available at 500 won, discounted from 1,180 won.

 

S. Korea to intensify pre-holiday price monitoring [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/11/82/05020

Summary: The government plans to step up its price monitoring of 22 food items and public services as part of its ongoing efforts to keep inflation under control ahead of the upcoming Lunar New Year holiday, the finance ministry said Tuesday.  The government will also provide around 21 trillion won (US$18.65 billion) worth of loans and guarantees for small and medium-sized companies in a bid to help support financially vulnerable companies, according to the Ministry of Strategy and Finance.

 

Near Sea Fish Catch Plunges due to Cold Weather [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/01/18/0318000000

Summary: Supply of fish to Busan Fishery Auction Market has declined to one third of the regular supply volume since early January due to the unusual cold weather.  For example, supply of fish to the auction market amounted to only 8 tons on Jan. 18.  According to the auction market, normal daily supply of fish to the auction is 1,000 tons in January.

 

S. Korea to inject 4.4 tln won to expand eco-friendly farming [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/18/21/050100

Summary: South Korea will inject 4.46 trillion won up until 2015 to further expand the country's eco-friendly farming infrastructure, the government said Tuesday.  The Ministry for Food, Agriculture, Forestry and Fisheries said its third five-year green farming development plan aims to increase the size of the local organic food industry four-fold so it can become a 2 trillion won market in the next five years from a little over 550 billion in 2010.  The plan also calls for a steady increase in crops raised without the use of agricultural chemicals and cut backs on the use of chemical fertilizers by 3 percent every year in the 2011-2015 period.

 

Sugar makers face antitrust investigation [English, CSY]

http://www.koreaherald.com/national/Detail.jsp?newsMLId=

Summary: The Fair Trade Commission has launched an investigation into the nation¡¯s three major sugar manufacturers to see if they are implicated in irregular practices in pricing products, sources said Friday.  The antitrust probe is aimed at examining their profit margins, distribution costs and other related factors to determine whether companies mark up prices too much, according to industry sources.

 

Given hikes in raw sugar prices, there was room for illegal practices such as price fixing between producers abusing their market control, a source said. ¡°Sugar costs have a ripple effect on other related industries such as confectionary, baking and beverages,¡± he said. ¡°That seems the background of the investigation.¡±  The country¡¯s leading food processor CJ Group raised sugar prices nearly 10 percent in late December after poor weather in major exporter countries including Brazil and Australia sent raw sugar costs to their highest level in 30 years.

 

Fewer fish being caught due to frozen seawater [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931177

Summary: The cold weather hitting the Korean Peninsula is now to blame for less fish on dinner tables. Fishing grounds in the southern parts of the country, including Busan and Jeju, are freezing over, preventing fishermen from going out into those areas.  As a result, fish catches have dropped off dramatically. The result could be higher prices at the market.  At the Busan Corporative Fish Market, yesterday¡¯s consignment of fish was 8 tons, the lowest amount since its establishment in 1963. The average amount per day in January is usually between 800 tons and 1,000 tons.

 

Arable land in S. Korea declines in 2010 [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/20/050100

Summary: The amount of arable land in South Korea declined last year due to the construction of buildings and public facilities, a government report showed Thursday.  The total size of paddies and fields in the country amounted to 1.72 million hectares at the end of last year, down 1.2 percent or 22,000 hectares from a year earlier, according to the report by Statistics Korea.

 

S. Korea updates quarantine rules to limit culling of animals [English, CSY]

http://english.yonhapnews.co.kr/business/2011/01/20/1/05010

Summary: South Korea has revised its foot-and-mouth disease (FMD) quarantine rules to limit the culling of livestock, as the effects of vaccinations should better protect animals from the contagious virus, the government said Thursday.  Deputy Farm Minister Lee Sang-kil told reporters that with vaccinations completed for most cattle farms across the country, the government has issued new rules to stem the spread of FMD.

 

Another cabbage crisis on the way [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931331

Summary:  This year the supply of cabbage is scarce and is raising concerns that the country might once again face this spring a so-called ¡°cabbage crisis,¡± similar to the one last autumn. According to the Korea Rural Economic Institute, the amount of winter cabbage production this year is expected to be 270,000 tons, which is less than the yearly average of 370,000 tons.  The lack of supplies, which is blamed on the cold weather, is raising the price of Napa cabbage. According to the Korea Agro-Fisheries Trade Corporation, the price of Napa cabbage per head rose to 4,400 won ($3.90) early this month, increasing from 3,500 won per head last month. On Wednesday, the price even reached over the 5,000 won level per head and industry officials expect the price to jump even more. Last year, the country faced a crisis as the price of cabbage temporarily skyrocketed to more than 14,000 won per head due to a poor harvest and unusual weather patterns.

 

Government set to submit carbon trading laws [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931593

Summary: Korea¡¯s presidential committee plans to submit legislation on carbon-emissions trading to parliament next month despite opposition from business groups. The bill will have flexibility on the timing of its introduction and the quota for free permits, according to a report from the Committee on Green Growth to President Lee Myung-bak. Korea, Asia¡¯s fourth-biggest polluter, said in November it aims to adopt a carbon-emissions trading system in 2013 to reduce greenhouse gas emissions and fight global warming. Under the initial plan, the nation will give away more than 90 percent of carbon permits in the first three years.

 

Korea to develop agricultural robots [English, CSY]

http://www.koreatimes.co.kr/www/news/biz/2011/01/123l

Summary: The Ministry of Knowledge Economy (MKE) said Thursday that it will channel a total of 100 billion won ($90 million) through 2013 in the seven crucial segments of education, water supply, manufacturing, firefighting, national defense, medical care and agriculture.  ¡°We are poised to pour 30 billion won this year alone into the seven sectors as well as encouraging innovative research on robots, which marks a substantial increase in support compared to the past,¡± an MKE official said.  ¡°One of the most significant focuses is the agricultural area, which has struggled to find workers. To grapple with these problems, we will employ autonomous robotic devices powered by high-tech sensors.¡±

To that end, the MKE will cooperate with the Rural Development Administration (RDA). ¡°Robotics technologies are readily embraced by farmers. For example, we have already secured knowhow for unmanned auto-guidance tractors, which can be remotely controlled when pesticides are sprayed or in other hazardous environments,¡± RDA researcher Kim Sang-cheol said.  ¡°The global market for the agricultural machines is estimated to grow at double-digit rates per year. We will eventually be able to rack up exports amounting to $600 million from the field.¡±  In addition, the RDA plans to develop autonomous plant buildings, which can churn out farm produce in the heart of cities with the help of robotic systems and state-of-the-art facilities.

 

This New Year, it¡¯s either pantry or pocketbook [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2931605

Summary: As one of the two major traditional holidays marked by gift-giving and family gatherings, Lunar New Year is often accompanied by climbing food prices due to increased demand.  However, a perfect storm of disasters - culls of chickens and ducks due to avian flu, foot-and-mouth disease culls of pork and beef, bitter cold that affected vegetables and fish - has caused this year¡¯s fresh food prices to spiral to an alarming level, forcing consumers to choose between their dining tables or wallets over the holiday. According to the Korea Institute for Animal Products Quality Evaluation (KAPE), the wholesale price of pork rose to a recent peak of 8,413 won ($7.55) per kilogram on Wednesday. The average wholesale price of pork for the month so far was 5,169 won, 56 percent higher than last January¡¯s average of 3,859 won.
 

 

 

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¡±.

 

 

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Agricultural Trade Office, U.S. Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921
Email: atoseoul@state.gov