Summary: Faced with the risk of its economy relapsing into another recession, the U.S. may pin its hopes on free trade deals, including the one with Korea, to jump-start its economic recovery, experts here said yesterday. A series of economic data from the U.S. is raising concerns that the world’s largest economy is losing momentum. The U.S. economy expanded at less than a 1 percent annual rate in the first half of the year, and consumer spending there dropped in June for the first time in nearly two years, underscoring the fragile state of the economy, according to the latest data.  But the U.S. seems to be running out of ammunition to revive its economy.  Concerns over the U.S. economic slowdown have also spurred speculation that the U.S. Federal Reserve may start another stimulus program. But given the country’s current inflation rate, it is hard to see it move in that direction, they said.

2. GRAIN & OILSEED ISSUES

Use of wheat flour in producing red pepper paste fade away [Korean: BYK]

http://www.foodnews.co.kr/news/board.php?board=news&config=4&command=body&no=23762&

Summary: The three major producers of red pepper paste in Korea have all switched from wheat flour to rice.  Red pepper paste manufacturers had been using wheat flour since when there was a shortage in rice supply.  However, as the response from consumers is good for red pepper paste made from rice, these major makers will continue to use rice.

3. MARKETING ISSUES

E-Mart Opens a Large-Scale Meat Processing Center [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/08/11/0318000000AKR20110811081400003.HTML

Summary: E-Mart opened ‘E-Mart Meat Center’ in Gwangju, Gyunggi-do on August 11, which according to the company will reduce the cost and distribution time of various meat products that the retailer offer.   The center is 7,100 sq. meter in size and is equipped with state of art tools that can process large volume products.  E-Mart estimates that the center will reduce the retail price of local Hanwoo beef by 10 to 20 percent.

Five E-Mart Stores to Run “HACCP” Product Section [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/08/10/0318000000AKR20110810196100017.HTML

Summary: Korea Food & Drug Administration (KFDA) announced on August 11 that five E-Mart stores will run “HACCP” section that will sell HACCP products only.  KFDA said that these pilot stores will help educate consumers benefits of HACCP.  If the pilot program proves successful, the HACCP section will be expanded to more retail stores, KFDA added.