Today's Date:     Friday, February 24, 2012

 

1. BILATERAL/MULTILATERAL ISSUES

 

Korus FTA to be implemented on March 15 [Korean, LSH]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201202212208425&code=920501

Summary: Korus FTA will be implemented on March 15, 2012. Korea and the United States exchanged a diplomatic official letter which implementation date is written. MOFAT plans to hold re-negotiation on Investor-State Dispute within 90 days after the implementation. Korus FTA implementation will eliminate tariffs on 11,261 products for Korea and 10,505 products for the United States within different periods depending on staging classifications.

 

After KORUS FTA takes effect, price fall of only fruits and wines will be felt [Korean: YJY]

http://news.hankooki.com/lpage/economy/201202/h2012022302343921500.htm

Summary:  It is expected that when KORUS FTA comes into effect on March 15 consumers will directly feel price fall of only fruits and wines.  Industrial products such as clothes, purses, and cosmetics will not change much in price as they are manufactured in other third countries.  More specifically, according to a research conducted with the aid of importers of American products, high tariffs of fruits such as cherries and raisins will be immediately eliminated.  As 15% tariff for Californian wines will be eliminated immediately, double-digit price fall will be seen.  Those in the wine business are even planning to provide wines that are 30% cheaper, in order to compete with French, Italian, and Chilean wines under current FTAs.  On the other hand, prices for meat will not decrease that much since tariff will decrease gradually over 10-year to 15-year term.

 

Regional controls to prevent pests and animal diseases in order to stimulate livestock and fresh fruit exports [Korean: YJY]
http://www.nongmin.com/article/ar_detail.htm?ar_id=199314
Summary:  For Korea-China FTA, China has finished virtually all preparations needed to fight pests and animal diseases.  Such regional control against pests and animal diseases started in the 1990s.  Consequently, international organizations came to label some of the regions as clean from pests and diseases. For livestock, in 1998, China put efforts into making 23 provinces free from infectious animal diseases. Hainan and Sichuan provinces made greatest progress, since not a single animal disease broke out in the region for several years. Liaoning province decreased its annual loss from livestock deaths by KRW 180 billion.

 

2. ECONOMIC ISSUES

 

Price competitiveness of imported agricultural products further increased with domestic price inflation [Korean: YJY]

http://www.asiae.co.kr/news/view.htm?idxno=2012022309424891272

Summary:  Due to the seasonal factor, domestic agricultural, livestock, and fishery products have increased.  Taking this as an opportunity, imported agricultural goods are expanding, becoming diverse and improving its price competitiveness.  For instance, American chuck eye roll costs KRW 2,000 per 100g and Korean counterpart, high quality beef tenderloin costs KRW 7,500 per 100g.  Also, due to the rise in tangerine price, demand for imported oranges has increased.  A box of tangerines that weigh 3 kilograms costs around KRW 27,000, whereas 4 American oranges cost KRW 5,480.

 

The price of cabbage in South Korea has rocketed while the wholesale price for pork belly has decreased [Korean: CJW]
http://www.hankyung.com/news/app/newsview.php?aid=201202236154t
Summary: Last year cabbage prices fell due to increased cabbage
cultivation area but recent series of Korean cabbage prices are skyrocketing. According to Korea Agro-Fisheries Trade Corporation, retail price of cabbage rose by 75.4% while the price for pork belly has decreased by 5.8% from last month. According to National Statistical Office, cultivation area for gimjang Kimchi increased by 28% to 17,326 ha from the previous year.

 

3. MARKETING ISSUES

 

Emart Lowers Price of Local Beef 15% [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20120222/44255252/1

Summary: Emart announced on Feb. 22 that it would lower the price of local ‘Hanwoo’ beef by 15 percent on average.  Emart added that the lowered price would remain unchanged by the end of June.  Price cut was possible mainly due to the direct beef sourcing network that Emart developed last year, through which it procure beef from long-term contract farms.

 

Red Chili Pepper was the Top Smuggling Item during the First Two Months This Year, Customs Office [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/02/22/0318000000AKR20120222042600002.HTML

Summary: Korean Customs Office reported that it had caught a total of 1,797 tons of red chili pepper from being smuggled into Korea during the first two months this year.  Most of the pepper was from China.  Other major smuggled products caught by the office included peeled garlic (390 tons), King crab (317 tons), and frozen shrimp (151 tons).  Customs Office commented that red chili pepper is one of the most attractive products for smuggling due to the high import duty, 270 percent.

 

Emart and Lotte Mart in Price War Again … This Time for ‘Hanwoo’ Beef [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20120223/44286598/1

Summary: After Emart announcing 15 percent price cut on local Hanwoo beef on Feb. 22, Lotte Mart announced the same level of price cut on Hanwoo beef on Feb. 23.  In particular, the price cut made on sirloin (#1 grade) was 29 percent from 6,900 won/100 gram down to 4,900 won/100 gram.

 

4. OTHER MISCELLANEOUS ISSUES

 

Seoul eyes China, other Asian countries to boost food exports [English, CSY]

http://english.yonhapnews.co.kr/business/2012/02/24/95/0501000000AEN20120224001500320F.HTML

Summary: South Korea is seeking to increase its food and agriculture exports by nearly 30 percent this year by targeting China and other Asian countries, the country's agriculture trade agency said Friday.   The Korea Agro-Fisheries and Food Trade Corp. (AT) said the country's agricultural exports to China are expected to reach US$2 billion, up 44.8 percent from last year.   Shipments to the 10 member nations of the Association of Southeast Asian Nations are also expected to grow 45.8 percent on-year to $1.5 billion, it added.   South Korea's food exports surged to a record high of $7.7 billion last year, growing 30.8 percent from a year earlier. The Ministry of Food, Agriculture, Forestry and Fisheries earlier set this year's goal at $10 billion.

 

Food makers agree to reduce salt [English, CSY]

Manufacturers to reduce sodium in 51 products favored by children; ramen makers reluctant

http://www.koreaherald.com/national/Detail.jsp?newsMLId=20120223001240

Summary: The Korea Food and Drug Administration said it had got agreements from food manufacturers to reduce the salt content of some products.  The food agency on Wednesday said makers of sauce, ketchup, salad dressings and retort foods have agreed to voluntarily reduce the amount of sodium used in 51 products popular with children.   Makers will reducer the salt content of readymade jjajang, spaghetti and udong sauces by 5 percent. They have also agreed to reductions of up to 10 percent in salad dressings and up to 43 percent in porridge and other foods, the KFDA said.

 

KRA Offers Free Stud Service from $3.5 Million Stallion [Korean, OSY]

http://news.donga.com/Society/3/03/20120224/44289427/1

Summary: Korea Race Association (KRA) has announced on February 22  the schedule of ‘free stud service program’ for this year.  KRA currently keeps 13 premium quality stallions for stud service program, including ‘Manifee’, an American stallion that KRA imported at $3.5 million.  Each stallion can offer up to 70 services in a given year, so the competition is very high among the race horse breeders to earn the chance of the free stud service.  For example, the stud service by ‘Manifee’ received four times larger applications than what was available last year.  Follies from these famous stallions can call over $100,000 of price per head in the market.

 

Manufacturers urged to reduce sodium in 51 products favored by young population albeit reluctance [English: YJY]
http://www.koreaherald.com/national/Detail.jsp?newsMLId=20120223001240
Summary:  KFDA said food manufacturers agreed to reduce the amount of salt used in some products, including sauce, ketchup, salad dressing makers.  More specifically, salt content will be reduced by 5% in readymade spaghettis, 10% in salad dressings, and 43% in porridges.  A KFDA official quoted that food manufacturers producing food favored by the young population have come to prioritize consumer’s health, especially children who are still growing.  This move is a part of the efforts to lower down Korea’s average intake of salt, which equals 10 grams per day, double of WHO recommendation.  Other efforts include designating restaurants to use less salt and developing recipes with less sodium.

 

5. MIFAFF PRESS RELEASES

 

► MIFAFF (Minister, Seo Gyu-yong) set to visit agriculture and fishery site in Kyunggi-do over a short overnight itinerary.

 

►Korean Food Foundation invited 5 final winners from ‘Korean food recipe contest accompanied by Super Junior' to Korea to join the award ceremony event.

 

►After participating in Interbull international genetic evaluations, MIFAFF (Minister, Seo Gyu-yong) confirmed that Korean bulls demonstrate the superiority over foreign bulls.